The Nigerian Electricity Regulatory Commission (NERC) has officially mandated a special compensation package for Band A customers who suffered from poor power supply during the first quarter of 2026. This directive (No. NERC/2026/002) addresses the service gaps caused by gas supply shortages and critical infrastructure vandalism.

Compensation Framework

The commission has categorized compensation based on the average daily electricity supply recorded on specific feeders during the affected period:

18–20 Hours Supply: Feeders that maintained this level of service will continue to be managed under the existing compensation framework (Addendum No. NERC/2024/003).

Below 18 Hours Supply: Feeders that failed to meet the 18-hour threshold will not be downgraded. Instead, customers will receive a specific credit:

Non-Maximum Demand (Non-MD) Customers: 20% of the approved February 2026 energy cap.

Maximum Demand (MD) Customers: 20% of the average energy billed in February 2026.

Implementation and Consumer Protection

NERC has set strict timelines and operational rules to ensure the credits reach consumers:

Payment Method: Prepaid customers will receive compensation via token credits, while postpaid customers will receive bill adjustments.

Deadlines: * February 2026 compensation: Must be completed by May 31, 2026.

March 2026 compensation: Must be completed by June 30, 2026.

Debt Protection: DisCos are prohibited from using these compensation credits to offset any outstanding customer debts. Customers must be clearly informed of the value and the specific period the compensation covers.

Industry Context

This intervention follows industry data indicating that in Q1 2026, thermal plants received less than 43% of the gas required to operate at optimal capacity. While load shedding has been necessary to manage the limited energy available, NERC is now enforcing this compensation to protect consumer value and maintain market stability. The commission continues to verify compliance across all distribution companies (DisCos) to ensure all eligible beneficiaries are credited.