The Nigerian Electricity Regulatory Commission (NERC) has introduced a special compensation scheme for eligible Band A electricity consumers who experienced reduced power supply due to generation challenges on the national grid between February and March 2026.
In a public notice released on Thursday, the commission said the measure followed widespread generation shortages that affected the ability of electricity distribution companies (DisCos) to provide the minimum hours of supply promised to Band A customers during the first quarter of the year.
According to NERC, the intervention was formalised through Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.
The regulator explained that the disruptions were mainly caused by factors outside the direct control of distribution companies, including inadequate gas supply and attacks on critical gas and transmission infrastructure.
“The shortfalls were largely attributed to inadequate gas supply and vandalism of critical gas and transmission infrastructure, factors beyond the direct operational control of the DisCos,” the commission stated.
The compensation package covers electricity supply deficiencies recorded between February and March 2026.
NERC noted that Band A feeders that maintained an average daily supply of between 18 and 20 hours during the affected period would continue to benefit from the compensation structure already established under Addendum No. NERC/2024/003.
“Where a Band A feeder recorded an average daily supply of between 18 and 20 hours, the existing compensation framework under Addendum No. NERC/2024/003 shall apply to both Maximum Demand and Non-Maximum Demand customers,” the commission said.
For Band A customers connected to feeders that received less than 18 hours of electricity daily, the regulator approved additional compensation while assuring that such feeders would not be downgraded during the period under review.
Under the directive, non-maximum demand customers will receive compensation equal to 20 per cent of the approved February 2026 energy cap applicable to their feeder.
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Maximum demand customers, on the other hand, will receive compensation equivalent to 20 per cent of the average energy billed per customer in that category for February 2026.
NERC explained that prepaid customers would receive their compensation through energy token credits, while postpaid users would benefit from adjustments to their electricity bills.
The commission directed all distribution companies to complete compensation payments for February 2026 by May 31, 2026, while compensation relating to March 2026 must be concluded by June 30, 2026.
To ensure transparency, NERC prohibited DisCos from using compensation credits to settle outstanding customer debts and instructed them to clearly communicate the value and period covered by each compensation package.
“Distribution companies are prohibited from offsetting compensation credits against any existing customer debt,” the commission stated, adding that customers must be informed of the compensation details.
NERC reaffirmed its commitment to safeguarding electricity consumers while maintaining stability within the power sector, promising to monitor compliance and ensure that all qualified customers receive the benefits due to them.
The development comes despite the fact that electricity distribution companies generated nearly N600 billion in revenue from consumers during the first quarter of 2026, according to industry figures released by the commission.
Data from the Nigerian Independent System Operator showed that thermal power stations required about 1,629.75 million standard cubic feet of gas daily to operate efficiently. However, by February 23, 2026, available gas supply stood at only 692 million standard cubic feet per day, less than 43 per cent of the required volume.
The gas shortage forced several power plants to reduce operations or shut down entirely, prompting the Transmission Company of Nigeria to ration available electricity among distribution companies through load shedding.
Throughout the period, many DisCos attributed prolonged outages to inadequate gas supply, although some consumers have reported noticeable improvements in electricity supply in recent weeks.