The regulator approved payments for eligible Band A consumers who suffered reduced supply due to gas shortages and vandalism, setting deadlines for distribution companies to credit prepaid meters and adjust postpaid bills.
The Nigerian Electricity Regulator y Commission has announced a compensation scheme for consumers classified as Band A who experienced extended outages during the months of February and March 2026.
The regulator issued a public notice on Thursday explaining that the measure seeks to mitigate the impact of widespread generation shortfalls that limited the amount of electricity delivered to the national grid. According to the commission, several distribution companies failed to meet the minimum supply obligations promised to Band A customers during the review period because of persistent constraints in the Nigerian Electricity Supply Industry.
The primary drivers of the shortfall were identified as insufficient gas feedstock for power plants and recurring acts of vandalism that targeted critical gas pipelines and transmission infrastructure. These problems reduced the quantity of power that could be dispatched to distribution networks, leaving many consumers without the expected service levels.
Under the approved arrangement, Band A feeders that maintained an average daily supply of between eighteen and twenty hours will continue to receive compensation according to the existing regulatory framework for both Maximum Demand and Non‑Maximum Demand customers. Feeders that delivered less than eighteen hours of electricity per day in the affected months will be granted additional relief and will not be re‑classified for the period covered by the scheme despite falling short of the service threshold.
For eligible Non‑Maximum Demand customers the compensation will be calculated as twenty per cent of the approved February 2026 energy cap applicable to their specific feeder. Maximum Demand customers will receive an amount equal to twenty per cent of the average energy billed per customer in February 2026. The commission further instructed that customers on prepaid meters should receive the compensation through token credits, while those on postpaid accounts will see adjustments reflected on their electricity bills.
Distribution companies have been directed to complete all compensation for February 2026 no later than thirty‑first May 2026 and to finish the March 2026 settlements by the thirtieth of June 2026. In addition, the regulator prohibited distributors from offsetting the awarded credits against any outstanding debts owed by customers. Operators must instead communicate clearly the value of the compensation and the period it covers.
NERC emphasized that the decision demonstrates its commitment to protecting electricity consumers and sustaining confidence in the ongoing power sector reforms. The commission also warned that it will closely monitor compliance by the distribution companies, carry out verification exercises, and take corrective action where necessary to ensure that all eligible customers receive the full amount of compensation due to them
Nigerian Electricity Regulator Band A Compensation Power Outages February 2026 Distribution Companies Consumer Protection
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