The Nigerian Electricity Regulatory Commission (NERC) has approved a compensation package for eligible Band A electricity customers who suffered prolonged power shortages due to generation challenges across the country.

 Politics Nigeria reports that regulator announced the decision in a public notice issued on Thursday, stating that the measure is aimed at addressing service disruptions experienced between February and March 2026.

According to NERC, several Distribution Companies (DisCos) were unable to meet the minimum electricity supply requirements promised to Band A customers during the period under review. The commission attributed the development to widespread generation constraints within the Nigerian Electricity Supply Industry (NESI).

The regulator explained that the shortfalls were largely caused by inadequate gas supply to power plants as well as acts of vandalism targeting key gas and transmission facilities. These challenges, it noted, significantly reduced the volume of electricity available for distribution across the country.

Under the approved arrangement, Band A feeders that maintained an average daily supply of between 18 and 20 hours will continue to enjoy compensation in line with the existing regulatory framework already in place for both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

However, customers connected to Band A feeders that recorded less than 18 hours of daily electricity supply during the affected months will receive additional relief. NERC said such feeders will not be downgraded for the period covered by the compensation scheme despite failing to meet the expected service threshold.

For eligible Non-MD customers, compensation will be calculated at 20 per cent of the approved February 2026 energy cap applicable to their respective feeders. MD customers, on the other hand, will receive compensation equivalent to 20 per cent of the average energy billed per customer in February 2026.

The commission further directed that customers using prepaid meters should receive compensation through token credits, while postpaid customers are to be compensated through adjustments to their electricity bills.

To ensure timely implementation, NERC instructed DisCos to complete compensation for February 2026 not later than May 31, 2026, while compensation relating to March 2026 must be fully implemented by June 30, 2026.

The regulator also prohibited electricity distribution companies from deducting compensation credits to settle any outstanding customer debts. Instead, it directed operators to clearly communicate the value of the compensation granted and the period it covers.

NERC said the decision reflects its commitment to protecting electricity consumers while maintaining confidence in the country’s power sector reforms.

The commission added that it would closely monitor compliance by distribution companies and carry out verification exercises to ensure that all eligible customers receive the compensation due to them.