NERC Approves Compensation Scheme
The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers.
The initiative targets customers affected by poor power supply between February and March 2026.
NERC announced the decision through a public notice published on its social media platforms on Thursday.
According to the commission, generation shortfalls across the power sector prevented distribution companies from meeting the minimum supply hours promised to Band A customers.
As a result, the regulator introduced Directive No. NERC/2026/002 to address the situation.
Generation Challenges Triggered Supply Shortfalls
NERC explained that several factors caused the disruptions.
Most importantly, inadequate gas supply reduced electricity generation nationwide.
In addition, vandals damaged key gas and transmission facilities.
Consequently, many power plants operated below capacity during the affected period.
The commission noted that these challenges remained outside the direct control of electricity distribution companies.
Therefore, the regulator decided to provide relief for affected consumers.
Existing Compensation Remains for Some Feeders
NERC stated that customers connected to Band A feeders receiving between 18 and 20 hours of daily electricity would continue under the existing compensation framework.
The commission said the current arrangement applies to both Maximum Demand and Non-Maximum Demand customers.
Furthermore, the framework remains unchanged for these categories.
Special Compensation Targets Severely Affected Customers
Meanwhile, customers connected to feeders receiving less than 18 hours of daily supply will benefit from the new compensation package.
NERC clarified that affected feeders will not face downgrading during the compensation period.
Instead, eligible customers will receive financial credits based on their customer category.
For Non-Maximum Demand customers, compensation will equal 20 percent of the approved February 2026 energy cap for the affected feeder.
Likewise, Maximum Demand customers will receive compensation equivalent to 20 percent of the average energy billed per customer in February 2026.
Prepaid and Postpaid Customers to Benefit
The commission also outlined how customers will receive compensation.
Prepaid customers will receive token credits directly into their meters.
Similarly, postpaid customers will receive bill adjustments.
As a result, affected consumers can access the benefits through their existing billing systems.
DisCos Must Meet Compensation Deadlines
NERC directed distribution companies to complete compensation payments within specific timelines.
Compensation for February 2026 must conclude by May 31, 2026.
Likewise, compensation for March 2026 must finish by June 30, 2026.
Furthermore, the commission warned distribution companies against deducting compensation from outstanding customer debts.
Instead, beneficiaries must receive the full value of the approved credits.
The regulator also instructed DisCos to clearly inform customers about the compensation amount and applicable period.
NERC Promises Strict Monitoring
NERC reaffirmed its commitment to protecting electricity consumers.
At the same time, it stressed the importance of maintaining stability in the power market.
Consequently, the commission pledged to closely monitor implementation across all distribution companies.
It also promised to verify compliance and ensure eligible customers receive their compensation.
Power Sector Faces Gas Supply Challenges
Industry data highlights the scale of the generation crisis.
According to the Nigerian Independent System Operator, thermal plants require about 1,629.75 million standard cubic feet of gas daily for optimal operations.
However, actual gas supply stood at only 692 million standard cubic feet per day as of February 23, 2026.
Therefore, power generation fell significantly below required levels.
As supply declined, several power plants shut down operations.
Consequently, the Transmission Company of Nigeria introduced load shedding to manage available electricity.
Distribution companies repeatedly informed customers that gas shortages caused many outages.
Power Supply Shows Signs of Improvement
Despite earlier challenges, some consumers have reported improvements in electricity supply in recent weeks.
Meanwhile, industry stakeholders continue efforts to stabilise generation and improve service delivery nationwide.
The compensation programme forms part of broader measures designed to support consumers while addressing the effects of recent power shortages.
