Electricity consumers on Band A feeders who endured prolonged power disruptions earlier this year are set to receive compensation following a new directive from the Nigerian Electricity Regulatory Commission.
The regulator announced on Thursday that it had approved a special relief package for eligible customers affected by electricity shortages caused by generation challenges between February and March 2026.
In a notice shared on its social media platforms, NERC said widespread generation deficits across the power sector significantly undermined the ability of electricity distribution companies to meet the minimum service commitments promised to Band A customers during the period.
To address the situation, the commission issued Directive No. NERC/2026/002, establishing a framework for compensating customers whose electricity supply fell below approved service standards due to circumstances beyond the control of the distribution companies.
According to NERC, the disruptions were largely linked to inadequate gas supplies and repeated attacks on critical gas and transmission infrastructure, developments that severely constrained power generation nationwide.
“The shortfalls were primarily caused by gas supply limitations and vandalism affecting key energy infrastructure,” the commission explained.
Under the newly approved arrangement, customers connected to Band A feeders that maintained an average daily electricity supply of between 18 and 20 hours during the affected months will continue to receive compensation under the existing regulatory framework.
However, NERC introduced additional measures for customers connected to feeders that failed to receive up to 18 hours of electricity daily between February and March.
The commission clarified that no Band A feeder would be downgraded during the compensation period, despite the supply deficiencies.
For eligible non-maximum demand customers, compensation will be calculated at 20 per cent of the approved February 2026 energy cap assigned to the affected feeder.
Maximum demand customers, on the other hand, will receive compensation equivalent to 20 per cent of the average energy billed to each customer in that category during February 2026.
NERC stated that prepaid customers would receive their compensation through energy token credits, while postpaid consumers would enjoy bill adjustments reflecting the approved compensation value.
To ensure timely implementation, the regulator directed distribution companies to conclude compensation payments for February outages by May 31, 2026, while compensation for March disruptions must be completed no later than June 30, 2026.
The commission also introduced safeguards aimed at protecting consumers from unfair practices. Distribution companies have been barred from deducting compensation credits from customers’ outstanding debts and must clearly communicate the value and duration of any compensation awarded.
Reaffirming its commitment to consumer welfare and a stable electricity market, NERC pledged to closely monitor implementation and verify compliance across all distribution companies to ensure affected customers receive their full entitlements.
The compensation directive comes despite strong revenue performance by electricity distributors. Industry figures released by the regulator show that distribution companies generated nearly N600 billion from consumers during the first quarter of 2026.
Meanwhile, operational data from the Nigerian Independent System Operator highlighted the depth of the generation crisis. According to the agency, thermal power plants require approximately 1.63 billion standard cubic feet of gas daily to operate efficiently. Yet, as of February 23, actual gas supply stood at just 692 million standard cubic feet per day less than half of what was required.
The severe gas shortage forced several power stations to scale down operations or shut down entirely, prompting the Transmission Company of Nigeria to ration available electricity among distribution companies through extensive load management measures.
Throughout the period, many distribution companies repeatedly blamed widespread outages on inadequate gas supply. However, some electricity consumers have reported noticeable improvements in power supply in recent weeks as generation conditions gradually stabilise.