SEECA Urges South-East Regulators to Adopt NERC-Style Compensation for Electricity Consumers

…Warns Against Mass Downgrading of Consumers to Lower Tariff Bands

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The South East Electricity Consumers Association (SEECA) has commended the Nigerian Electricity Regulatory Commission (NERC) for approving special compensation for eligible Band A electricity customers affected by grid generation constraints between February and March 2026.

The association described the directive as a progressive and consumer-focused intervention aimed at protecting electricity consumers while maintaining stability within the Nigerian Electricity Supply Industry (NESI).

Speaking to journalists in Enugu on Monday, SEECA Coordinator, Dr. Sebastine Chukwuebuka Okafor, said NERC’s decision to compensate Band A customers who experienced inadequate electricity supply despite paying premium tariffs demonstrates the importance of balancing consumer protection with the operational realities facing electricity distribution companies (DisCos).

According to him, the generation shortfalls recorded during the period were largely caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure—factors beyond the direct operational control of DisCos.

Dr. Okafor noted that NERC’s decision not to automatically downgrade affected Band A feeders, but instead provide compensation to impacted customers, represents a thoughtful and pragmatic regulatory response.

He explained that the compensation framework, which provides token credits for prepaid customers and billing adjustments for postpaid customers, offers relief to affected consumers without disrupting existing technical and administrative electricity supply arrangements.

While reaffirming SEECA’s support for accountability within the power sector and the principle that consumers should pay only for the quality and duration of service received, Dr. Okafor said compensation should be considered where supply deficiencies arise from broader systemic challenges rather than direct failures by electricity distribution companies.

He therefore called on the Enugu State Electricity Regulatory Commission (EERC) and other electricity regulatory agencies across the South-East to adopt similar consumer-friendly policies by establishing compensation mechanisms for affected customers instead of relying solely on feeder downgrades in response to nationwide generation constraints.

The SEECA Coordinator also cautioned against the planned mass migration of consumers from existing tariff bands to lower bands as a routine response to generation shortfalls. He warned that such actions could create additional technical, administrative, and operational challenges in electricity distribution, energy planning, and service management.

According to him, widespread tariff band downgrades could ultimately have unintended negative consequences for electricity consumers across the South-East.

Dr. Okafor emphasized that regulatory interventions must strike a balance between consumer welfare and the long-term sustainability of the electricity market. He added that a stable tariff structure, supported by transparent compensation mechanisms, would encourage greater investment, improve network efficiency, and strengthen consumer confidence in the power sector.

He reaffirmed SEECA’s commitment to constructive engagement with electricity regulators, distribution companies, and other stakeholders to ensure that policies within the power sector promote fairness, accountability, improved service delivery, and sustainable access to electricity for households and businesses across the South-East.