NERC Approves Special Compensation for Eligible Band A Customers Affected by Grid Generation Constraints
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 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.
– Special Compensation for Feeders with Less Than 18 Hours Supply
* Affected Band A feeders will not be downgraded during the covered period.
* 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.
> MD Customers: Compensation equivalent to 20% of the average energy billed per MD customer in February 2026.
Mode of Compensation
– Prepaid customers will receive compensation through token credits.
– Postpaid customers will receive compensation through bill adjustments.
Implementation Timeline
– Compensation for February 2026 shall be completed no later than 31 May 2026.
– Compensation for March 2026 shall be completed no later than 30 June 2026.
Customer Protection
– Distribution Companies are prohibited from offsetting compensation credits against any existing customer debt.
– Customers must be clearly informed of the value and period of compensation received.
NERC remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market. The Commission will continue to monitor implementation and verify compliance by Distribution Companies to ensure all eligible customers receive the compensation due to them.
For further details, kindly visit NERC website: www.nerc.gov.ng.
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