NERC has approved compensation for eligible Band A electricity customers affected by prolonged power supply shortfalls between February and March 2026
The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by prolonged power supply disruptions caused by generation constraints on the national grid between February and March 2026.
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The commission announced the measure in a public notice issued on Thursday, stating that the directive became necessary after widespread generation shortfalls prevented electricity distribution companies from meeting the minimum supply levels guaranteed to some Band A customers.
NERC said it introduced Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints to address the impact of the outages.
According to the regulator, the disruptions were largely caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors beyond the direct control of electricity distribution companies.
The commission explained that the compensation scheme covers the period between February and March 2026, when many Band A feeders experienced reduced electricity supply.
Under the directive, Band A feeders that recorded an average daily electricity supply of between 18 and 20 hours will continue to be compensated under the existing regulatory framework.
However, NERC introduced additional relief measures for customers connected to Band A feeders that received less than 18 hours of daily electricity supply during the affected period.
The regulator clarified that affected feeders will not be downgraded during the compensation period and that eligible customers will receive credits based on their customer category.
For non-maximum demand customers, compensation will amount to 20 per cent of the approved February 2026 energy cap applicable to the affected feeder.
Similarly, maximum demand customers will receive compensation equivalent to 20 per cent of the average energy billed per customer in February 2026.
NERC stated that prepaid customers will receive compensation through electricity token credits, while postpaid customers will receive adjustments to their monthly bills.
The commission directed electricity distribution companies to complete compensation for February 2026 by May 31, 2026, while compensation relating to March 2026 must be concluded no later than June 30, 2026.
To protect consumers, NERC prohibited distribution companies from deducting compensation credits to offset existing customer debts and instructed them to clearly communicate the value and period covered by the compensation.
The regulator reaffirmed its commitment to consumer protection and pledged continued monitoring of compliance to ensure all eligible customers receive the benefits due to them.
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The compensation directive comes amid persistent challenges in Nigeria’s power sector, including gas shortages that forced several power plants to reduce operations and contributed to load shedding across the country during the first quarter of the year.
