The Nigerian Electricity Regulatory Commission (NERC) has directed electricity Distribution Companies (Discos) to compensate eligible Band A customers affected by reduced power supply between February and March 2026, following nationwide generation challenges caused by gas shortages and vandalism of critical energy infrastructure.
The directive, issued under NERC Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints, aims to cushion the impact of service failures experienced by customers under the premium electricity tariff category.
Band A customers are expected to receive a minimum of 20 hours of electricity supply daily under the service-based tariff framework. However, NERC said generation constraints during the period affected Discos’ ability to meet their guaranteed supply commitments.
According to the regulator, the disruption was mainly caused by inadequate gas availability to power generation companies and attacks on key gas and transmission infrastructure, factors considered beyond the direct control of electricity distributors.
NERC said customers on Band A feeders that received between 18 and 20 hours of supply daily during the affected period would continue to receive compensation under the existing customer protection framework.
For customers who experienced less than 18 hours of daily supply, the commission approved a special compensation arrangement while maintaining their Band A classification.
Under the new directive, non-Maximum Demand (Non-MD) customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder.
Maximum Demand (MD) customers will receive a credit equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
NERC directed Discos to apply the compensation through electricity token credits for prepaid customers, while postpaid customers will receive corresponding adjustments on their electricity bills.
The commission also set deadlines for implementation, directing that compensation for February 2026 shortfalls must be completed by May 31, while March 2026 compensation must be concluded by June 30, 2026.
To ensure transparency, NERC warned Discos against using compensation credits to offset outstanding customer debts.
The regulator also directed electricity companies to clearly communicate the amount credited to each customer and the period covered by the reimbursement.
The commission said the measure reinforces its commitment to consumer protection while supporting the long-term stability of Nigeria’s electricity market.
“NERC remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market,” the regulator stated, adding that compliance monitoring would continue to ensure eligible customers receive the approved compensation.
Industry stakeholders say the directive highlights the need for stronger investment in gas supply infrastructure, transmission security and grid reliability as Nigeria works to improve electricity acce
