Precious Anga
Lagos — The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (Discos) to compensate eligible Band A customers who experienced power supply shortfalls between February and March 2026 following generation constraints linked to gas shortages and vandalism of critical energy infrastructure.
The directive, contained in NERC’s Special Compensation Framework for Band A Customers Affected by Grid Generation Constraints, seeks to address the impact of reduced electricity generation across the Nigerian Electricity Supply Industry (NESI) during the period under review.
According to the commission, the generation shortfalls significantly affected the ability of Discos to meet the minimum service commitment for Band A customers, who are entitled to receive at least 20 hours of electricity supply daily. NERC noted that the disruptions were largely caused by inadequate gas supply to power plants and attacks on key gas and transmission facilities, factors considered beyond the direct control of distribution companies.
The regulator explained that customers on Band A feeders that recorded an average daily supply of between 18 and 20 hours will continue to receive compensation under the existing framework established in Addendum No. NERC/2024/003. The arrangement 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 during the affected months, NERC introduced a special compensation package while maintaining their Band A classification despite the service shortfalls.
Under the directive, non-maximum demand customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap for their respective feeders. Maximum demand customers will receive compensation equal to 20 per cent of the average energy billed per MD customer in February 2026.
To ensure customers benefit directly from the relief measure, NERC instructed Discos to provide compensation to prepaid customers through electricity token credits, while postpaid customers are to receive bill adjustments reflecting the approved compensation amounts.
The commission further stated that compensation for February 2026 supply shortfalls was expected to be completed by May 31, while all reimbursements relating to March 2026 must be fully implemented by June 30, 2026.
As part of consumer protection measures, NERC prohibited Discos from using compensation credits to offset outstanding customer debts. Distribution companies were also directed to clearly communicate the value of compensation granted and the period covered by the reimbursement.
The regulator said the directive underscores its commitment to strengthening consumer confidence while ensuring the long-term sustainability of Nigeria’s electricity market. NERC added that it will continue to monitor implementation and verify compliance to ensure all eligible customers receive the compensation due to them.
