South‑East electricity consumers demand NERC‑style compensation and caution against band downgrade

South East Electricity Consumers Association (SEECA) welcomed the Nigerian Electricity Regulatory Commission’s (NERC) approval of special compensation for eligible Band A electricity customers.

Daily Post reports that NERC approved the compensation for customers affected by grid generation constraints that occurred between February and March 2026.

Speaking with reporters in Enugu on Monday, SEECA Coordinator Dr. Sebastine Chukwuebuka Okafor described the directive as a progressive, consumer‑oriented decision that protects users while maintaining stability in the Nigerian electricity supply industry.

Okafor said NERC’s decision to compensate Band A customers who suffered inadequate supply despite paying higher tariffs illustrates the need to balance consumer protection with the operational realities faced by distribution companies.

He noted that the generation shortfalls during the period—largely caused by insufficient gas supply and vandalism of critical gas and transmission infrastructure—were beyond the direct operational control of Distribution Companies (DisCos). Therefore, NERC’s choice to provide compensation rather than automatically downgrade affected Band A feeders was a well‑thought‑out regulatory intervention.

According to Okafor, the compensation framework—token credits for prepaid customers and bill adjustments for postpaid customers—ensures affected consumers receive relief without disrupting 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 pay only for the quality and duration of service received, the Association believes compensation should be considered when supply deficiencies arise from systemic national challenges rather than direct failures of distribution companies.

He therefore urged 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 when broader generation constraints occur.

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. He stressed that such actions could create additional technical, administrative, and operational difficulties in electricity distribution, energy planning, and service management, and could negatively affect consumers across the South East.

Okafor maintained that regulatory actions should balance consumer welfare with 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 reaffirmed SEECA’s commitment to constructive engagement with electricity regulators, Distribution Companies, and other stakeholders to ensure that power‑sector policies promote fairness, accountability, improved service delivery, and sustainable electricity access for residents and businesses in the South East.