The Nigerian Electricity Regulatory Commission (NERC) has directed electricity Distribution Companies (DisCos) to compensate eligible Band A customers affected by power supply disruptions caused by generation constraints between February and March 2026.
The directive, contained in Order No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints, was issued in response to significant generation shortfalls across the Nigerian Electricity Supply Industry (NESI) during the period.
According to NERC, the shortfalls were largely due to inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors beyond the direct operational control of the DisCos.
The Commission said the compensation framework covers the period from February to March 2026 and is intended to address service delivery gaps experienced by some Band A customers despite paying premium tariffs for improved electricity supply.
Under the directive, Band A feeders that recorded an average daily supply of between 18 and 20 hours will continue to be governed by the existing compensation framework contained in Addendum No. NERC/2024/003 for both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
However, Band A feeders that recorded less than 18 hours of average daily supply during the affected period will qualify for special compensation and will not be downgraded despite failing to meet the minimum service threshold.
NERC stated that eligible Non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder, while MD customers will receive credits equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
The Commission directed that prepaid customers be compensated through electricity token credits, while postpaid customers will receive bill adjustments.
To ensure timely implementation, NERC ordered DisCos to complete compensation for February 2026 no later than May 31, 2026, while compensation for March 2026 must be concluded by June 30, 2026.
The regulator also introduced consumer protection measures, prohibiting DisCos from offsetting compensation credits against existing customer debts. It further directed the companies to clearly communicate the value and period of compensation provided to beneficiaries.
NERC reaffirmed its commitment to protecting electricity consumers while promoting the stability and sustainability of the electricity market, adding that it would continue to monitor implementation and verify compliance to ensure all eligible customers receive the compensation due to them.
