The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation framework for Band A electricity customers affected by generation constraints recorded within the Nigerian Electricity Supply Industry (NESI) between February and March 2026.
The directive, identified as NERC/2026/002 and published on the commission’s website, was issued in Abuja on Thursday in response to widespread shortfalls in power supply during the period under review.
According to the commission, the disruptions were largely caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors which it said were beyond the operational control of electricity distribution companies (DisCos).
NERC explained that the generation shortfalls significantly affected DisCos’ ability to meet the guaranteed service levels for Band A customers, who are typically expected to receive the highest level of electricity supply.
Under the directive, feeders classified under Band A that recorded an average daily supply of between 18 and 20 hours during the affected period will benefit from an existing compensation framework contained in Addendum No. NERC/2024/003. This applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
For feeders that received less than 18 hours of electricity supply per day, a separate compensation arrangement has been introduced. NERC also stated that such feeders will not be downgraded during the compensation period.
Under the arrangement, Non-MD customers connected to affected feeders will receive compensation equivalent to 20 per cent of the approved February energy cap for the feeder.
Maximum Demand customers, on their part, will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February.
The commission said the compensation will be implemented through token credits for prepaid customers and bill adjustments for postpaid customers.
It directed electricity distribution companies to complete compensation payments for February by May 31 and for March by June 30.
NERC further prohibited DisCos from using compensation credits to offset existing customer debts, stressing that customers must be clearly informed of the value and period covered by the compensation.
“The commission remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market,” it said.
It added that it would continue to monitor implementation and enforce compliance to ensure eligible customers receive due compensation.
