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 its social media platforms on Thursday.
According to NERC, the measure followed significant generation shortfalls across the Nigerian Electricity Supply Industry that prevented electricity distribution companies from meeting the minimum service levels guaranteed to some Band A customers during the first quarter of the year.
The regulator said it issued Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints to address the situation.
NERC stated: “In recognition of the significant generation shortfalls experienced across the Nigerian Electricity Supply Industry between February and March 2026, which affected the ability of distribution companies to meet the committed service levels for some Band A customers.”
The commission explained that the disruptions were largely caused by factors outside the direct control of electricity distribution companies.
NERC said: “The shortfalls were largely attributed to inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors beyond the direct operational control of the DisCos.”
Under the directive, customers connected to Band A feeders that recorded an average daily supply of between 18 and 20 hours during the affected period will continue to be compensated under the existing framework.
The commission stated: “Where a Band A feeder recorded an average daily supply of between 18 and 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 shall apply to both Maximum Demand and Non-Maximum Demand customers.”
NERC also introduced a special compensation package for Band A customers connected to feeders that received less than 18 hours of electricity supply daily during the period.
According to the directive, affected Band A feeders will not be downgraded during the compensation period.
The commission said eligible non-maximum demand customers would receive “compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to the affected feeder”.
For maximum demand customers, compensation will be equivalent to 20 per cent of the average energy billed per customer in February 2026.
NERC said prepaid customers would receive the compensation through token credits, while postpaid customers would receive bill adjustments.
The regulator 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 protect consumers, the commission stated that “distribution companies are prohibited from offsetting compensation credits against any existing customer debt”, adding that “customers must be clearly informed of the value and period of compensation received”.
Reaffirming its commitment to consumer protection and market stability, NERC said it would continue to monitor implementation of the directive and verify compliance by distribution companies to ensure all eligible customers receive the compensation due to them.
The development comes amid ongoing challenges in the power sector linked to gas supply shortages and infrastructure vandalism.
Industry data from the Nigerian Independent System Operator showed that thermal power plants require an estimated 1,629.75 million standard cubic feet of gas per day to operate optimally.
However, as of February 23, 2026, actual supply stood at about 692.00 million standard cubic feet per day, representing less than 43 per cent of required volume.
The gas shortfall contributed to the shutdown of several power plants during the first quarter, while the Transmission Company of Nigeria implemented load shedding to ration available electricity among distribution companies.
Despite the challenges, some consumers have reported improvements in electricity supply in recent weeks.
