By Oke Peter
The Nigerian Electricity Regulatory Commission (NERC) has approved special compensation for eligible Band A electricity customers who experienced service shortfalls between February and March 2026 due to grid generation constraints.
The approval was conveyed through Directive No. NERC/2026/002, according to a notice issued by the commission on Thursday.
NERC said the directive was introduced in response to significant generation shortfalls across the Nigerian Electricity Supply Industry (NESI) during the period, which affected the ability of Distribution Companies (DisCos) to meet the committed service levels for some Band A customers.
The commission attributed the shortfalls largely to inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors it said were beyond the direct operational control of the DisCos.
In February, the Nigerian Independent System Operator (NISO) had linked the decline in electricity generation to insufficient gas supply to thermal power plants, noting that the energy allocated to DisCos reflected the reduced power available on the national grid.
According to NERC, the compensation scheme applies to service shortfalls recorded between February and March 2026. For Band A feeders that recorded an average daily supply of between 18 and 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 will apply to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
The commission also stated that Band A feeders that received less than 18 hours of supply during the affected period would not be downgraded.
Under the special compensation arrangement, Non-MD customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder, while MD customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
NERC explained that prepaid customers would receive compensation through token credits, while postpaid customers would benefit through bill adjustments.
The commission directed DisCos to complete compensation payments for February no later than May 31, 2026, while compensation for March must be concluded by June 30, 2026.
It further prohibited DisCos from offsetting compensation credits against any existing customer debts and directed them to clearly inform customers of the value and period covered by the compensation received.
“NERC remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market,” the commission stated.
The regulator added that it would continue to monitor implementation and verify compliance by distribution companies to ensure that all eligible customers receive the compensation due to them.
