The Nigerian Electricity Regulatory Commission (NERC) has announced a directive granting special compensation to eligible Band A customers hit by generation shortfalls in February-March 2026, caused by gas supply shortages and infrastructure vandalism.

According to a public notice by NERC on Thursday, affected feeders under 18 hours daily supply qualify for 20% compensation (energy cap for Non-MD, average billed energy for MD customers), with no band downgrades; 18-20 hour feeders use existing rules.

Prepaid users get token credits and postpaid get bill adjustments by late May/June 2026 deadlines, with protections against debt offsets and requirements for transparency to customers.

“The Nigerian Electricity Regulatory Commission (NERC) hereby notifies electricity consumers and stakeholders of the issuance of Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints,” the statement read.

“The directive was introduced in recognition of the significant generation shortfalls experienced across the Nigerian Electricity Supply Industry (NESI) between February and March 2026, which affected the ability of Distribution Companies (DisCos) to meet the committed service levels for some Band A customers.

“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.

“Key Provisions of the Directive: Coverage Period: The compensation scheme applies to the period covering February 2026 to March 2026.

“Compensation for Feeders with 18–20 Hours Supply: 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 (MD) and Non-Maximum Demand (Non-MD) customers.”

On special compensation for feeders with less than 18 hours supply, NERC said: “Affected Band A feeders will not be downgraded during the covered period while eligible customers will receive special compensation as follows: Non-MD Customers: Compensation equivalent to 20% of the approved February 2026 energy cap applicable to the affected feeder and MD Customers: Compensation equivalent to 20% of the average energy billed per MD customer in February 2026.”

On the mode of compensation, NERC explained that: “Prepaid customers will receive compensation through token credits while postpaid customers will receive compensation through bill adjustments.”

According to NERC’s implementation timeline, “Compensation for February 2026 shall be completed no later than 31 May 2026 while compensation for March 2026 shall be completed no later than 30 June 2026.”

On customer protection, “Distribution Companies are prohibited from offsetting compensation credits against any existing customer debt” even as “Customers must be clearly informed of the value and period of compensation received.”

NERC also assured that it remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market.

The commission added that it will continue to monitor implementation and verify compliance by Distribution Companies (DisCos) to ensure all eligible customers receive the compensation due to them.

For further details, customers have been advised to kindly visit the NERC website: nerc.gov.ng.