The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers who experienced poor power supply between February and March 2026 due to generation constraints on the national grid.
In a public notice issued on Thursday, the commission said the directive became necessary following significant generation shortfalls across the Nigerian Electricity Supply Industry (NESI), which prevented electricity distribution companies (DisCos) from meeting the minimum service levels promised to some Band A customers.
According to NERC, the supply disruptions were largely caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors beyond the direct control of the DisCos.
Under Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints, customers connected to Band A feeders that recorded an average daily electricity supply of between 18 and 20 hours during the affected period will continue to receive compensation under the existing framework.
For Band A feeders that received less than 18 hours of electricity supply daily, NERC said customers will receive additional compensation while the feeders will retain their Band A classification for the period under review.
The commission explained that non-maximum demand customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap applicable to the affected feeder. Maximum demand customers will receive compensation equal to 20 percent of the average energy billed per customer in February 2026.
The regulator directed DisCos to complete compensation for February 2026 by May 31, 2026, and conclude compensation for March 2026 by June 30, 2026.
It also instructed the companies not to offset the compensation against existing customer debts and to clearly communicate the value and period of the relief granted.
NERC said the measure is aimed at protecting consumers and ensuring that customers affected by supply disruptions receive appropriate relief despite the challenges facing the nation’s power sector.
RN
