NERC Orders Compensation for Band A Customers Over Power Supply Shortfalls
The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity consumers who suffered prolonged power outages due to generation constraints on the national grid between February and March 2026.
Global Mirror News gathered that the regulatory Commission announced the directive in a public notice issued on Thursday, stating that the measure was introduced to address the impact of widespread generation shortfalls that affected electricity distribution companies’ ability to provide the minimum service levels promised to Band A customers during the first quarter of the year.
According to NERC, the intervention is contained in Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.
The commission explained that the disruptions were caused largely by factors beyond the direct control of electricity distribution companies (DisCos), including inadequate gas supply to power plants and the vandalism of critical gas and transmission infrastructure across the country.
NERC noted that the compensation scheme specifically covers the period from February to March 2026 when power generation challenges significantly affected electricity supply nationwide.
Under the directive, Band A customers connected to feeders that received an average daily power supply of between 18 and 20 hours during the affected period will continue to receive compensation under the existing framework established by Addendum No. NERC/2024/003.
However, the regulator introduced additional compensation measures for customers connected to Band A feeders that received less than 18 hours of electricity supply daily.
The commission stated that affected feeders will not be downgraded during the compensation period. Eligible non-maximum demand customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap applicable to their feeder, while maximum demand customers will receive compensation equal to 20 percent of the average energy billed per customer in February 2026.
NERC further explained that prepaid customers will receive compensation through electricity token credits, while postpaid customers will benefit through adjustments to their monthly electricity bills.
To ensure timely implementation, the commission directed electricity distribution companies to complete compensation for February 2026 by May 31, 2026, while compensation for March 2026 must be fully processed no later than June 30, 2026.
The regulator also emphasized consumer protection measures, warning that distribution companies are prohibited from using compensation credits to offset outstanding customer debts. It added that beneficiaries must be clearly informed about the value and period covered by any compensation received.
Reaffirming its commitment to protecting electricity consumers and maintaining stability within the power sector, NERC said it would closely monitor compliance by distribution companies to ensure all eligible customers receive their entitlements.
Meanwhile, industry data released by the commission revealed that electricity distribution companies generated approximately N600 billion in revenue from consumers during the first quarter of 2026 despite persistent supply challenges.
Data from the Nigerian Independent System Operator highlighted the severity of the generation crisis, showing that thermal power plants require about 1.63 billion standard cubic feet of gas daily to operate optimally. However, as of February 23, 2026, actual gas supply stood at only 692 million standard cubic feet per day, representing less than 43 percent of the required volume.
The shortage forced several power plants to shut down operations, prompting the Transmission Company of Nigeria to implement load shedding measures to distribute the limited electricity available across the country.
While many electricity consumers endured prolonged outages during the period, some Nigerians have recently reported noticeable improvements in power supply as gas availability and generation levels begin to recover.
Global Mirror News reports that the compensation directive is expected to provide relief to affected consumers while reinforcing regulatory oversight of service delivery obligations within Nigeria’s electricity sector.
