The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation scheme for eligible Band A electricity customers who experienced poor power supply due to nationwide generation constraints between February and March 2026.
In a public notice shared on its official social media platforms, the commission said the decision followed significant shortfalls in electricity generation across the Nigerian Electricity Supply Industry, which prevented distribution companies from meeting the guaranteed service standards for some Band A feeders.
NERC explained that it had issued a directive titled NERC/2026/002 to guide the implementation of the compensation framework for affected customers.
According to the regulator, the power supply disruptions were largely caused by factors beyond the control of electricity distribution companies, including inadequate gas supply and repeated vandalism of critical gas and transmission infrastructure.
The commission stated that customers connected to Band A feeders that still received between 18 and 20 hours of electricity daily during the period will continue to be covered under the existing compensation arrangement.
However, it introduced additional compensation measures for Band A customers whose feeders recorded less than 18 hours of daily supply during the affected months.
Under the new framework, eligible non-maximum demand customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap for their affected feeders.
Maximum demand customers will also receive compensation calculated as 20 per cent of the average energy billed to them in February 2026.
NERC added that prepaid customers will be compensated through token credit adjustments, while postpaid customers will receive direct reductions in their electricity bills.
The commission further directed distribution companies to complete all compensation payments for February 2026 by May 31, 2026, and for March 2026 by June 30, 2026.
It also prohibited DisCos from using compensation credits to offset existing customer debts and required them to clearly inform customers of the value and duration of the compensation applied.
Reaffirming its commitment to consumer protection and market stability, NERC said it will closely monitor implementation and enforce compliance to ensure all eligible customers receive their due benefits.
The development comes amid ongoing challenges in the power sector, including gas shortages and transmission constraints, which have led to load shedding and plant shutdowns across the country.
Despite these challenges, some consumers have recently reported a gradual improvement in electricity supply in certain areas.
