By Stella Odueme
The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers affected by power supply shortfalls caused by grid generation constraints between February and March 2026.
The Commission announced the decision in a statement accompanying the issuance of Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.
According to NERC, the initiative was introduced to mitigate the impact of significant generation deficits experienced across the Nigerian Electricity Supply Industry (NESI) during the period under review.
The Commission attributed the shortfalls primarily to inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors it noted were beyond the control of electricity Distribution Companies (DisCos).
Under the directive, the compensation scheme covers the period from February to March 2026.
NERC explained that Band A feeders that recorded an average daily supply of between 18 and 20 hours would continue to benefit from the existing compensation framework provided under Addendum No. NERC/2024/003, which applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
However, for Band A feeders that received less than 18 hours of electricity supply per day, the Commission said affected feeders would not be downgraded during the period. Instead, eligible customers would receive special compensation.
Under the arrangement, Non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to the affected feeder. MD customers, on the other hand, will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
The Commission stated that prepaid customers would receive compensation through token credits, while postpaid customers would benefit through bill adjustments.
To ensure prompt implementation, NERC directed DisCos to complete compensation for February 2026 no later than May 31, 2026, while compensation for March 2026 must be concluded by June 30, 2026.
As part of measures to protect consumers, the Commission prohibited DisCos from applying compensation credits to offset existing customer debts. It also directed operators to clearly communicate to customers the value and period covered by the compensation received.
