The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation scheme for eligible Band A electricity customers affected by decrease in power generation from the national grid between February and March 2026.
In a public notice issued on Wednesday, the commission said the directive was introduced in response to significant generation shortfalls across the Nigerian Electricity Supply Industry (NESI), which affected the ability of distribution companies (DisCos) to meet the committed service levels for some Band A customers.
“The directive was introduced in recognition of the significant generation shortfalls experienced across the Nigerian Electricity Supply Industry (NESI) between February and March 2026, which affected the ability of Distribution Companies (DisCos) to meet the committed service levels for some Band A customers,” 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.”
NERC said where a Band A feeder recorded an average daily electricity supply of between 18 and 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 would apply to both maximum demand (MD) and non-maximum demand (Non-MD) customers.
The regulator added that Band A feeders that recorded less than 18 hours of supply during the period would not be downgraded and that eligible customers would receive special compensation.
‘Under the arrangement, Non-MD customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap applicable to the affected feeder, while MD customers will receive compensation equivalent to 20 percent of the average energy billed per MD customer in February 2026,” the regulator added.
The regulator also barred DisCos from offsetting compensation credits against existing customer debts and directed them to clearly communicate the value and period of compensation received to beneficiaries.
“NERC remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market,” the commission said.
The electricity regulator said it will continue to monitor implementation and verify compliance by DisCos to ensure all eligible customers receive the compensation due to them.
NERC said prepaid customers would receive compensation through token credits, while postpaid customers would benefit through bill adjustments.
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