SEECA Demands Compensation for Southeast Electricity Consumers, Approved by NERC

The South East Electricity Consumers Association (SEECA) has urged that Band A electricity consumers in the region receive compensation, following a directive from the Nigerian Electricity Regulatory Commission (NERC).

SEECA Coordinator Dr. Sebastine Chukwuebuka Okafor made the appeal on Monday during a discussion with journalists in Enugu, stating that Band A consumers in the Southeast should not be ignored in the compensation scheme.

NERC recently approved special compensation for eligible Band A customers who were affected by power interruptions caused by grid generation constraints between February and March 2026.

In contrast, some electricity regulatory bodies have opted to downgrade electricity feeders to lower tariff bands when distribution companies fail to meet the minimum required daily hours of supply, a move seen by them as an easy way out.

Okafor welcomed NERC’s compensatory approach, describing the directive as “a progressive and consumer‑oriented decision aimed at protecting electricity users.”

He added that implementing such compensation would help maintain stability in Nigeria’s electricity supply industry.

According to Okafor, NERC’s decision to compensate Band A customers who received inadequate 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 during the disruption period were largely due to insufficient gas supply and vandalism of critical gas and transmission infrastructure.

Because these events were beyond the direct operational control of Distribution Companies (DisCos), Okafor said NERC’s choice not to automatically downgrade affected Band A feeders but instead provide compensation was a well‑thought‑out regulatory intervention.

The SEECA Coordinator highlighted that the compensation framework offers token credits for prepaid customers and bill adjustments for postpaid customers, ensuring that “affected consumers receive relief without disrupting the existing technical and administrative arrangements of electricity supply.”

He stated that “SEECA strongly supports accountability in the electricity sector and the principle that consumers should only pay for the quality and duration of service received.”

However, the Coordinator emphasized that compensation should be considered when supply deficiencies stem from systemic national challenges rather than direct failures of electricity distribution companies.

He called on the Enugu State Electricity Regulatory Commission (EERC) and other regulatory agencies across the South East to adopt a similar consumer‑friendly compensatory strategy as NERC.

According to him, mechanisms for compensation should be developed 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 be counterproductive.

He said that downgrading tariff bands would create additional technical, administrative, and operational difficulties in electricity distribution, energy planning, and service management, potentially harming consumers across the South East.

Okafor insisted that “regulatory actions should strike a balance between consumer welfare and the sustainability of the electricity market.”

“A stable tariff structure supported by transparent compensation mechanisms would encourage improved investment, efficient network management, and greater confidence among electricity consumers,” he added.

The Coordinator reiterated SEECA’s commitment to constructive engagement with electricity regulators, DisCos, and other stakeholders.

He said this approach would ensure that power‑sector policies promote fairness, accountability, improved service delivery, and sustainable electricity access for residents and businesses in the South East.