The Nigerian Electricity Regulatory Commission has directed electricity distribution companies to compensate Band A customers affected by power supply shortfalls caused by generation constraints between February and March 2026.
The directive, issued under NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints, followed significant electricity generation shortages that prevented some distribution companies from meeting the minimum service levels required under the Band A tariff regime.
According to the commission, the disruptions were largely caused by factors beyond the control of the distribution companies.
“The shortfalls were largely attributed to inadequate gas supply and vandalism of critical gas and transmission infrastructure,” NERC said.
The commission said customers connected to Band A feeders that received between 18 and 20 hours of electricity daily would continue to be compensated under the existing framework.
However, customers on feeders that received less than 18 hours of supply will receive special compensation while retaining their Band A classification during the affected period.
“Eligible customers will receive special compensation,” the commission stated, explaining that non-maximum demand customers would receive compensation equivalent to 20 percent of the approved February 2026 energy cap, while maximum demand customers would receive 20 percent of the average energy billed per customer in February.
NERC said prepaid customers would receive token credits, while postpaid customers would get bill adjustments.
It also barred distribution companies from using compensation credits to offset existing customer debts.
“Customers must be clearly informed of the value and period of compensation received,” the commission added.
NERC said it would monitor compliance to ensure all eligible customers receive the compensation due to them.
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