South-East electricity consumers demand NERC-style compensation, caution against band downgrade

South East Electricity Consumers Association, SEECA, has described the approval of special compensation for eligible Band A electricity customers by the Nigerian Electricity Regulatory Commission, NERC, as a welcome development.  

DAILY POST recalls that NERC approved the compensation for customers affected by grid generation constraints between February and March 2026.

Speaking with newsmen in Enugu on Monday, the Coordinator of SEECA, Dr Sebastine Chukwuebuka Okafor, described the directive as a progressive and consumer-oriented decision aimed at protecting electricity users, while ensuring stability in the Nigerian Electricity Supply Industry.

Okafor said the decision by NERC to compensate Band A customers who suffered inadequate electricity supply despite paying higher tariffs demonstrates the importance of balancing consumer protection with the operational realities facing electricity distribution companies.

He noted that the generation shortfalls experienced within the period, which were largely caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, were circumstances beyond the direct operational control of Distribution Companies (DisCos), making NERC’s decision not to automatically downgrade affected Band A feeders but rather provide compensation a well-thought-out regulatory intervention.

According to him, the compensation framework, which provides token credits for prepaid customers and bill adjustments for postpaid customers, ensures that affected consumers receive relief without disrupting the existing technical and administrative arrangements of electricity supply.

Okafor explained that while SEECA strongly supports accountability in the electricity sector and the principle that consumers should only pay for the quality and duration of service received, the Association believes that compensation should be considered in circumstances where supply deficiencies arise from systemic national challenges rather than the direct failures of 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 approaches by developing compensation mechanisms for affected consumers instead of relying solely on feeder downgrades in situations caused by broader generation constraints.

The SEECA coordinator warned against the planned mass movement of consumers from existing tariff bands to lower bands as a routine response to generation challenges, stressing that such actions could create additional technical, administrative, and operational difficulties in electricity distribution, energy planning, and service management, and could have negative consequences for electricity consumers across the South East.

He maintained that regulatory actions should strike a balance between consumer welfare and the sustainability of the electricity market, noting that a stable tariff structure supported by transparent compensation mechanisms would encourage improved investment, efficient network management, and greater confidence among electricity consumers.

Okafor 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 electricity access for residents and businesses in the South East.

South-East electricity consumers demand NERC-style compensation, caution against band downgrade