NERC Approves Special Compensation for Band A Electricity Customers Over Nationwide Grid Supply Shortfalls

The Nigerian Electricity Regulatory Commission (Nigerian Electricity Regulatory Commission) has announced a special compensation package for Band A electricity customers affected by nationwide power supply shortfalls caused by grid generation constraints.

In a directive issued under No. NERC/2026/002, the Commission explained that the decision followed significant generation deficits within the Nigerian Electricity Supply Industry (NESI) between February and March 2026, which prevented Distribution Companies from meeting their committed service delivery obligations.

According to the Commission, the shortfalls were largely due to inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors described as being outside the direct control of Distribution Companies (DisCos).

Under the directive, customers served by feeders that recorded between 18 and 20 hours of daily supply will be compensated in line with the existing framework for Maximum Demand and Non-Maximum Demand customers.

For feeders that delivered less than 18 hours of supply, eligible Band A customers will receive special compensation. Non-Maximum Demand customers will get credits equivalent to 20% of the approved February 2026 energy cap, while Maximum Demand customers will receive 20% of their average energy billed for the same period.

The Commission further stated that affected feeders will not be downgraded during the compensation period, and prepaid customers will receive credits through token adjustments, while postpaid customers will benefit through bill reductions.

Implementation deadlines have also been set, with February 2026 compensation expected to be completed by May 31, 2026, and March 2026 compensation by June 30, 2026.

NERC emphasized that Distribution Companies are prohibited from using compensation credits to offset existing customer debts, adding that customers must be properly informed of the value and period of compensation received.

The regulator reaffirmed its commitment to consumer protection and market stability, stating that it will closely monitor compliance to ensure eligible customers receive due benefits.