The Nigerian Electricity Regulatory Commission (NERC) has approved mandatory special compensation to eligible Band A customers affected by power supply disruptions following “grid generation constraints.”
NERC notified electricity consumers and stakeholders through its issuance of Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.
In addition, NERC gave a mandatory timeframe within which to effect the compensation.
According to NERC, “The directive was introduced in recognition of the significant generation shortfalls experienced across the Nigerian Electricity Supply Industry (NESI) between February and March 2026, which affected the ability of Distribution Companies (DisCos) to meet the committed service levels for some Band A customers.
“The shortfalls were largely attributed to inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors beyond the direct operational control of the DisCos.
The key provisions of the directive involves compensation over the period covering February 2026 to March 2026.
It also involves compensation for Feeders with 18–20 Hours Supply where a Band A feeder recorded an average daily supply of between 18 and 20 hours.
“The existing compensation framework under Addendum No. NERC/2024/003 shall apply to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers”, NERC directed.
It explained that in respect of special compensation for feeders with less than 18 hours supply,
the affected Band A feeders would not be downgraded during the covered period.
It directed that eligible customers would receive special compensation as follows:
For Non-Maximum Demand Customers, compensation equivalent to 20% of the approved February 2026 energy cap applicable to the affected feeder.
For Maximum Demand (MD) Customers, a compensation equivalent to 20% of the average energy billed per MD customer in February 2026.
The mode of compensation, include that Prepaid customers will receive compensation through token credits while Postpaid customers will receive compensation through bill adjustments.
The compensation Implementation Timeline for February 2026 shall be completed no later than 31 May 2026 while that of March 2026 shall be completed no later than 30 June 2026.
To ensure customer protection, NERC directed that Distribution Companies are prohibited from offsetting compensation credits against any existing customer debt. It maintained that Customers must be clearly informed of the value and period of compensation received.
NERC reiterated that it remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market.
“The Commission will continue to monitor implementation and verify compliance by Distribution Companies to ensure all eligible customers receive the compensation due to them.”, it added.
