The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation plan for eligible Band A electricity customers affected by generation shortfalls recorded within the Nigerian Electricity Supply Industry between February and March 2026.
This is contained in a public notice issued by the Commission on Directive No. NERC/2026/002 on Special Compensation of Band A Customers arising from grid generation constraints.
According to NERC, the directive became necessary following significant generation shortfalls within the Nigerian Electricity Supply Industry during the period under review, which limited the ability of Distribution Companies (DisCos) to deliver the agreed service levels to some Band A customers.
The Commission stated that the shortfall was largely linked to inadequate gas supply and vandalism of key gas and transmission infrastructure, factors outside the direct control of DisCos.
Under the directive, the compensation scheme covers February and March 2026.
For feeders that recorded between 18 and 20 hours of daily supply, the existing compensation arrangement under Addendum No. NERC/2024/003 will apply to both Maximum Demand and Non-Maximum Demand customers.
For feeders that recorded less than 18 hours of supply, affected Band A feeders will not be downgraded within the period covered by the directive.
Non-Maximum Demand customers will get compensation equivalent to 20 percent of the approved February 2026 energy cap for the affected feeder.
Maximum Demand customers will receive compensation equivalent to 20 percent of the average energy billed per customer for February 2026.
Prepaid customers are to receive value through token credits, while postpaid customers will be credited through bill adjustments.
NERC fixed the implementation deadline for February 2026 compensation at not later than 31 May 2026, while March 2026 compensation is to be completed by 30 June 2026.
The Commission directed that Distribution Companies must not use the compensation credits to offset existing customer debts. It also stated that customers must be clearly informed of the value and period of the compensation received.
NERC said it remains committed to safeguarding electricity consumers while maintaining stability within the electricity market, adding that it will monitor implementation and verify compliance by Distribution Companies to ensure eligible customers receive due compensation.