The Nigerian Electricity Regulatory Commission has directed electricity distribution companies to compensate Band A customers who suffered service shortfalls between February and March 2026 due to generation constraints caused by inadequate gas supply and vandalism of critical infrastructure, setting a June 30 deadline for the completion of all March-related reimbursements.
The regulator said in a public notice that the disruptions significantly affected the ability of distribution companies to meet the minimum commitment of at least 20 hours of daily supply guaranteed to Band A customers, and that the circumstances were largely beyond the direct control of the distribution companies. It announced Directive No. NERC/2026/002 on the Special Compensation of Band A Customers Arising from Grid Generation Constraints.
Under the framework, customers on Band A feeders that received between 18 and 20 hours daily during the affected period will continue to be compensated under the existing Addendum No. NERC/2024/003. A special compensation package was introduced for feeders that received less than 18 hours of daily supply, with those feeders protected from downgrading despite the service shortfalls.
Non-maximum demand customers will receive compensation equivalent to 20 percent of the approved February 2026 energy cap for the affected feeder. Maximum demand customers will receive compensation equivalent to 20 percent of the average energy billed per maximum demand customer in February 2026. Compensation for prepaid customers must be delivered as electricity token credits; postpaid customers will receive bill adjustments.
The commission prohibited distribution companies from applying compensation credits to offset customers’ outstanding debts and required that beneficiaries be clearly informed of the value of the compensation received and the specific period it covered. Compensation related to February was to have been completed by May 31, with March compensation due by June 30.
