THE Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for Band A electricity customers who suffered blackouts and inadequate power supply due to generation constraints between February and March 2026.
News Point Nigeria reports that the regulator said the intervention became necessary following significant generation shortfalls across the Nigerian Electricity Supply Industry (NESI), which prevented Distribution Companies (DisCos) from meeting their committed service levels to some Band A customers during the period.
According to NERC, the power supply disruptions were largely caused by inadequate gas supply to electricity generation companies and the vandalism of critical gas and transmission infrastructure, factors beyond the direct operational control of the DisCos.
The commission disclosed this in a statement outlining measures aimed at cushioning the impact of the outages on affected consumers while maintaining confidence in the electricity market.
It would be recalled that electricity consumers across the country experienced severe load shedding between February and March 2026 following a sharp decline in gas supply to power generation companies.
The reduction stemmed from mounting debts owed to gas suppliers, prompting a cut in gas deliveries from an estimated 1,629.75 million standard cubic feet (mmscf) per day to 692.00 mmscf per day—less than 43 per cent of the volume required for optimal electricity generation.
NERC explained that the compensation scheme specifically covers the period from February to March 2026 and applies to Band A feeders that recorded an average daily electricity supply of between 18 and 20 hours.
According to the commission, feeders within this category will continue to be treated under the existing compensation framework contained in Addendum No. NERC/2024/003 for both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.
The regulator further clarified that affected Band A feeders would not be downgraded during the compensation period.
Under the scheme, eligible Non-Maximum Demand customers will receive compensation equivalent to 20 per cent of the approved February 2026 energy cap applicable to their feeder, while Maximum Demand customers will receive compensation equivalent to 20 per cent of the average energy billed per MD customer in February 2026.
NERC stated that prepaid customers would receive compensation through electricity token credits, while postpaid customers would benefit through bill adjustments.
The commission directed that compensation for February 2026 must be completed on or before May 31, 2026, while compensation for March 2026 must be concluded no later than June 30, 2026.
It also warned Distribution Companies against using compensation credits to offset existing customer debts, insisting that consumers must be clearly informed of the value and period of compensation granted to them.
“NERC remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market,” the commission stated.
It added that it would continue to monitor implementation of the directive and verify compliance by Distribution Companies to ensure that all eligible customers receive the compensation due to them.