The Nigerian Electricity Regulatory Commission has directed Distribution Companies to compensate eligible Band A customers for electricity supply shortfalls recorded in February and March 2026.
The commission issued Directive No. NERC/2026/002 on June 4, 2026, to address the impact of generation constraints on service delivery.
NERC attributed the shortfalls to inadequate gas supply and vandalism of gas and transmission infrastructure.
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These factors prevented DisCos from meeting the minimum supply levels promised to Band A customers under the service-based tariff framework.
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The directive covers feeders that delivered less than the required 20 hours of daily supply.
Feeders with average daily supply between 18 and 20 hours will follow the existing compensation framework.
Those below 18 hours will receive special compensation while retaining their Band A classification during the period.
Eligible Non-Maximum Demand customers will get compensation equal to 20 percent of the approved February 2026 energy cap for their feeder.
Maximum Demand customers will receive 20 percent of the average energy billed per customer in February 2026.
Prepaid customers will receive token credits on their meters, while postpaid customers will see adjustments on their bills.
The commission prohibited DisCos from deducting compensation from any outstanding debts.
Distribution companies must clearly inform eligible customers of the compensation amount and the period it covers.
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Compensation for February 2026 must be completed by May 31, 2026, while March compensation must be settled by June 30, 2026.
The move aims to provide relief to customers affected by grid-related challenges beyond the control of distribution companies.
Under NERC’s service-based tariff, Band A customers are entitled to a minimum of 20 hours of daily supply.
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The directive reinforces the commission’s policy of linking tariffs to actual service delivery.
It represents a major intervention to protect consumers during periods of widespread generation constraints in the Nigerian Electricity Supply Industry.
