The Nigerian Electricity Regulatory Commission has approved a special compensation package for eligible Band A electricity customers affected by poor power supply between February and March 2026.
The commission said the measure became necessary after generation shortfalls across the Nigerian Electricity Supply Industry prevented electricity distribution companies from meeting the minimum service levels promised to some Band A customers.
According to NERC, the disruptions were mainly caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors beyond the direct control of the DisCos.
Band A customers are expected to receive a minimum of 20 hours of electricity supply daily under Nigeria’s service-based tariff system. However, power shortages recorded during the first quarter of 2026 affected service delivery across several feeders nationwide.
To address the situation, NERC issued Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.
The commission said feeders that recorded an average daily supply of between 18 and 20 hours would continue to receive compensation under the existing framework.
For feeders that received less than 18 hours of supply daily, a separate compensation package has been approved. NERC also directed that affected feeders should not be downgraded during the covered period.
Under the arrangement, non-maximum demand customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to the affected feeder, while maximum demand customers will receive compensation equivalent to 20 per cent of the average energy billed per customer in February.
Prepaid customers will receive token credits, while postpaid customers will benefit through bill adjustments.
NERC directed all electricity distribution companies to complete compensation for February by May 31 and conclude compensation for March by June 30.
The regulator also barred DisCos from using compensation credits to offset customer debts and directed them to clearly communicate the value and period of compensation received.
The move comes amid growing complaints from electricity consumers who paid premium Band A tariffs but experienced prolonged outages due to generation shortages and load shedding.
NERC said it remains committed to consumer protection while ensuring the stability and sustainability of Nigeria’s electricity market.
