By: Tijani Salako.

The Nigerian Electricity Regulatory Commission has approved a special compensation package for eligible Band A electricity customers affected by prolonged power supply shortfalls caused by grid generation constraints between February and March 2026.

The directive was contained in Order No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints issued by the commission and made public on Wednesday through their official X handle

According to NERC, the compensation became necessary following significant generation shortfalls recorded across the Nigerian Electricity Supply Industry during the review period, which prevented electricity distribution companies from meeting the committed service levels for some Band A feeders.

The commission attributed the generation shortages largely to inadequate gas supply as well as vandalism of critical gas and transmission infrastructure, noting that the factors were beyond the operational control of the distribution companies.

Under Nigeria’s service-based tariff structure, Band A customers are expected to receive a minimum of 20 hours of electricity supply daily and are charged higher tariffs based on the improved level of service.

NERC explained that feeders that recorded an average supply of between 18 and 20 hours daily during the affected period would continue to enjoy compensation under the existing framework contained in Addendum No. NERC/2024/003 for both Maximum Demand and Non-Maximum Demand customers.

However, for Band A feeders that recorded less than 18 hours of average daily supply, the commission directed that affected feeders would not be downgraded during the covered period, while eligible customers would receive special compensation.

The commission stated that Non-Maximum Demand customers would receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to the affected feeder, while Maximum Demand customers would receive compensation equivalent to 20 per cent of the average energy billed per customer in February 2026.

NERC further explained that prepaid customers would receive the compensation through token credits, while postpaid customers would benefit through bill adjustments.

According to the implementation timeline released by the commission, compensation for February 2026 must be completed on or before May 31, 2026, while compensation for March 2026 is expected to be concluded not later than June 30, 2026.

The commission also barred distribution companies from offsetting compensation credits against customers’ existing debts, directing that customers must be clearly informed about the value and duration of compensation received.

The development comes amid growing complaints from electricity consumers over declining hours of supply despite the migration of several feeders to Band A classification under the service-based tariff regime.

NERC reiterated its commitment to consumer protection and market stability, assuring stakeholders that it would continue to monitor compliance by distribution companies to ensure all eligible customers receive the compensation due to them.