The Nigerian Electricity Regulatory Commission (NERC) has directed electricity Distribution Companies (DisCos) to compensate eligible Band A customers affected by power supply shortfalls between February and March 2026.
The commission announced the decision in a statement issued on Thursday, unveiling Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.
According to NERC, widespread generation shortages during the two-month period prevented several DisCos from meeting the minimum electricity supply commitments required under the service-based tariff framework.
The regulator explained that the shortfalls were largely caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure—factors beyond the direct control of the distribution companies.
NERC said the directive is intended to provide relief to Band A customers who did not receive the minimum level of service promised under their tariff classification.
Under the framework, feeders that delivered an average of between 18 and 20 hours of electricity daily during the affected period will continue to be compensated under the existing provisions contained in Addendum No. NERC/2024/003.
However, Band A feeders that recorded less than 18 hours of average daily supply will qualify for special compensation while retaining their Band A status.
Eligible Non-Maximum Demand (Non-MD) customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder. Maximum Demand (MD) customers will receive compensation equal to 20 per cent of the average energy billed per MD customer in February 2026.
“Affected Band A feeders will not be downgraded during the covered period,” NERC stated.
The commission explained that compensation will be credited differently depending on the customer category.
Prepaid customers will receive compensation through electricity token credits loaded directly onto their meters, while postpaid customers will receive bill adjustments reflecting the compensation amount.
To ensure prompt implementation, NERC directed DisCos to complete compensation for February 2026 shortfalls by May 31, 2026, and conclude payments relating to March 2026 by June 30, 2026.
The regulator also barred DisCos from using the compensation to offset outstanding customer debts and instructed them to clearly communicate the value and duration of the compensation to affected consumers.
