The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by poor power supply caused by generation constraints on the national grid between February and March 2026.
The commission announced the decision in a public notice issued on Thursday, explaining that widespread generation shortfalls across the Nigerian Electricity Supply Industry prevented some electricity distribution companies from meeting the minimum service levels promised to Band A customers during the first quarter of the year.
According to NERC, the compensation is being implemented through Directive No. NERC/2026/002, titled Special Compensation of Band A Customers Arising from Grid Generation Constraints.
The regulator noted that the supply disruptions were mainly caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors beyond the direct control of electricity distribution companies.
Under the directive, customers connected to Band A feeders that received an average of between 18 and 20 hours of electricity daily during the affected period will continue to be compensated under the existing framework.
However, Band A customers connected to feeders that received less than 18 hours of electricity supply per day between February and March 2026 will receive additional compensation.
NERC stated that affected Band A feeders will not be downgraded during the compensation period. Eligible non-maximum demand customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder.
For maximum demand customers, compensation will be based on 20 per cent of the average energy billed per customer in February 2026.
The commission explained that prepaid customers will receive compensation through token credits, while postpaid customers will benefit through adjustments to their electricity bills.
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NERC directed distribution companies to complete compensation for February 2026 by May 31, 2026, while compensation for March 2026 must be concluded by June 30, 2026.
To ensure transparency, the commission prohibited distribution companies from using compensation credits to offset existing customer debts. It also directed them to clearly inform customers about the value and period of compensation received.
The regulator reaffirmed its commitment to protecting electricity consumers while maintaining the stability and sustainability of the power sector. It added that it would closely monitor implementation to ensure all eligible customers receive the compensation due to them.
The move comes amid ongoing challenges in the power sector, including gas supply shortages that affected electricity generation during the first quarter of the year. Industry data showed that thermal power plants received significantly less gas than required during the period, forcing some plants to shut down and leading to load shedding across the country.
Despite the challenges, electricity distribution companies reportedly generated about N600 billion in revenue from consumers during the first quarter of 2026. Recent weeks, however, have seen reports of improved power supply in some parts of the country.
