The Nigerian Electricity Regulatory Commission (NERC) has issued Directive No. NERC/2026/002 on the special compensation of Band A electricity customers affected by grid generation constraints.
The commission said the directive was introduced following significant power generation shortfalls recorded across the Nigerian Electricity Supply Industry (NESI) between February and March 2026, which prevented Distribution Companies (DisCos) from meeting agreed service levels for some Band A customers.
According to NERC, the shortfall was largely caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors described as being beyond the control of DisCos.
Under the directive, the compensation scheme covers the period from February to March 2026.
For Band A feeders that recorded an average daily supply of 18 to 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.
However, for feeders that supplied less than 18 hours daily, affected customers will receive special compensation without downgrading of their feeder classification during the period.
Non-MD customers will receive compensation equivalent to 20% of the approved February 2026 energy cap for their feeder, while MD customers will be credited 20% of their average billed energy for February 2026.
NERC stated that prepaid customers will receive compensation in the form of token credits, while postpaid customers will get bill adjustments.
The commission set implementation deadlines of May 31, 2026, for February compensation and June 30, 2026, for March compensation.
It further directed DisCos not to offset compensation credits against existing customer debts and mandated them to clearly communicate the value and period of compensation to affected customers.
NERC reaffirmed its commitment to protecting electricity consumers while ensuring stability in the electricity market, adding that it will closely monitor compliance by DisCos to ensure eligible customers receive due compensation.
PUBLIC NOTICE
NERC Approves Special Compensation for Eligible Band A Customers Affected by Grid Generation Constraints
The Nigerian Electricity Regulatory Commission (NERC) hereby notifies electricity consumers and stakeholders of the issuance of Directive No. NERC/2026/002 on… pic.twitter.com/0IMYYlxiR5
— NERC Nigeria (@NERCNG) June 4, 2026
