Key points
- The Nigerian Electricity Regulatory Commission has mandated specialized financial compensation for Band A feeders hit by generation constraints between February and March.
- The directive, published officially on Thursday in Abuja, addresses severe national electricity shortfalls caused by asset vandalism and gas supply shortages.
- Feeders that fell below an average of 18 hours of daily supply are shielded from being downgraded during the affected period.
- Both Maximum Demand and Non-Maximum Demand customers on impacted networks will receive a 20 percent energy credit adjustment based on February metrics.
- Distribution companies must conclude the required consumer disbursements by May 31 for February failures and by June 30 for March shortfalls.
Main Story
The Nigerian Electricity Regulatory Commission (NERC) has issued an official regulatory directive ordering electricity distribution companies (DisCos) to provide specialized compensation to Band A customers who suffered severe power supply disruptions between February and March.
The regulatory order, designated as Directive No. NERC/2026/002, was published on the agency’s web portal on Thursday from its Abuja headquarters. According to the commission, the policy response was established to address the extensive generation deficits recorded across the Nigerian Electricity Supply Industry (NESI) during the two-month window.
These system-wide shortfalls prevented power distributors from meeting their mandatory service-level agreements for a significant portion of their premium Band A consumer base.
The guidelines clarify how the remedial framework will be structured for different supply tiers. Band A feeders that successfully maintained an average daily electricity supply ranging between 18 and 20 hours throughout the period will have their relief managed under pre-existing regulatory addendums, affecting both maximum and non-maximum demand users.
Conversely, a customized reimbursement layout has been structured specifically for feeders where the daily supply collapsed under the 18-hour threshold. NERC emphasized that these heavily affected networks will not face service-tier downgrades for the duration of the coverage window.
Non-maximum demand consumers on these specific networks are entitled to financial relief equal to 20 percent of the authorized February energy cap assigned to their feeder, while maximum demand clients will get an equivalent 20 percent credit calculated from the average energy billed to them during February.
The commission has instructed that the financial credits be deployed seamlessly based on the customer’s billing infrastructure, utilizing token credits for individuals using prepaid meters and direct balance adjustments for postpaid accounts. The regulatory timeline gives power firms until May 31 to conclude all compensation processes relating to the February disruptions, while the settlement for March shortfalls must be wrapped up latest by June 30.
Furthermore, the regulatory body has explicitly barred distribution companies from using these mandatory compensation credits to write off any pre-existing debts owed by the consumer. NERC added that it intends to maintain strict oversight over the implementation process to verify complete industry compliance and ensure all eligible consumers are fully reimbursed.
The Issues
- Protecting utility consumer rights during severe, systemic generation collapses across the national grid.
- Enforcing strict corporate accountability and timeline adherence for distribution firms delivering courted credits.
- Insulating premium power bands from permanent operational downgrades caused by external infrastructure vulnerabilities like gas shortages.
What’s Being Said
- Outlining the core structural failures that triggered the widespread reduction in energy availability across the country, the commission explained: ”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.”
- Explaining the special rules governing severely impacted power networks during this evaluation window, the directive noted: ”Under the directive, Band A feeders that recorded an average daily supply of between 18 and 20 hours during the covered period, will have the existing compensation framework under addendum No. NERC/2024/003. This applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers. For feeders that fell below 18 hours of daily supply, a special compensation arrangement applies. Adding that affected feeders will not be downgraded during the coverage period,“
- Insisting on transparent communication to ensure consumers are fully aware of the financial relief allocated to them, the regulator mandated: ”Customers must be clearly informed of the value and period of compensation received.”
- Reaffirming the long-term focus of the regulatory body regarding market sustainability and consumer equity, NERC stated: ”The commission remains committed to protecting electricity consumers while ensuring the stability and sustainability of the electricity market.”
- Warning utility providers that the agency will actively audit the rollout of the financial relief, the statement concluded: ”The commission will continue to monitor implementation and verify compliance by Discos to ensure all eligible customers receive the compensation due to them,”
What’s Next
- DisCos must conclude all pending balance adjustments and token distributions for March electricity shortfalls by the June 30 deadline.
- NERC monitoring teams will initiate verification compliance checks across all utility portals to validate that credits were not illegally used to offset older customer debts.
- Distribution operators will be required to issue transparent notifications detailing the exact values and coverage periods of the compensation sent to their Band A users.
Bottom Line
NERC has issued a mandatory directive forcing DisCos to pay a 20 percent energy compensation credit to Band A customers who experienced severe power shortfalls below 18 hours between February and March, setting a strict June 30 deadline for March adjustments and explicitly banning firms from using the relief to clear old customer debts.
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