The Nigerian Electricity Regulatory Commission (NERC) has announced a special compensation package for eligible Band A electricity customers who experienced power supply disruptions between February and March 2026. This directive, NERC/2026/002, addresses grid generation constraints that prevented Distribution Companies (DisCos) from meeting their committed service levels.
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. Despite these challenges, affected Band A feeders will not be downgraded during the covered period.
Compensation Details for Band A Customers
For Band A feeders that recorded an average daily supply of between 18 and 20 hours during February and March 2026, the existing compensation framework under Addendum No. NERC/2024/003 will continue to apply to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
However, for Band A feeders that received less than 18 hours of daily supply during the same period, NERC has approved a special compensation mechanism. Eligible Non-MD customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap applicable to the affected feeder. Similarly, MD customers will receive compensation equivalent to 20 percent of the average energy billed per MD customer in February 2026.
Mode and Timeline for Compensation
The commission specified that prepaid customers will receive their compensation through token credits, while postpaid customers will benefit from bill adjustments. NERC has set strict deadlines for the disbursement of these compensations.
Compensation for customers affected in February 2026 must be completed no later than May 31, 2026. Payments relating to March 2026 shortfalls must be concluded by June 30, 2026. NERC has directed electricity distribution companies not to offset compensation credits against existing customer debts and to clearly communicate the value and compensation period to all affected customers.
NERC reiterated its commitment to protecting electricity consumers while ensuring the stability and sustainability of the electricity market. The commission will continue to monitor implementation and verify compliance to ensure all eligible customers receive their due compensation.
