The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to compensate eligible Band A customers who experienced reduced power supply during the nationwide generation shortfall recorded between February and March 2026.
In a notice issued by the commission, NERC said the compensation measure became necessary after disruptions in electricity generation prevented some DisCos from meeting the minimum service hours promised to Band A consumers.
According to the regulator, the decline in electricity supply was mainly caused by challenges in gas availability and attacks on critical gas and transmission infrastructure, factors that were beyond the control of the distribution companies.
NERC explained that feeders supplying between 18 and 20 hours of electricity daily during the affected period would be covered under the existing compensation framework already in place for Band A customers.
However, for feeders that supplied less than 18 hours of electricity per day, the commission said customers would receive a special compensation package instead of being reclassified to a lower service band.
Under the arrangement, non-maximum demand customers will receive energy credits equivalent to 20 percent of the approved energy cap for February 2026 on their respective feeders. Maximum demand customers will receive compensation based on 20 percent of the average energy billed to customers in the category during the same period.
The commission stated that prepaid customers would receive the compensation through electricity token credits, while postpaid users would benefit through adjustments to their electricity bills.
NERC also instructed DisCos not to apply the compensation against outstanding customer debts. The companies were further directed to clearly inform beneficiaries about the value of the compensation and the period it covers.
The regulator reaffirmed its commitment to consumer protection and maintaining stability in the power sector, adding that it would closely monitor implementation of the directive to ensure all qualified customers receive the compensation due to them.
