The South East Electricity Consumers Association (SEECA) has urged electricity regulators across the South-East to adopt the Nigerian Electricity Regulatory Commission’s (NERC) compensation model for affected consumers instead of resorting to mass tariff band downgrades, warning that such a move could disrupt electricity supply management and ultimately hurt consumers.
Speaking with journalists in Enugu on Monday, the Coordinator of SEECA, Dr. Sebastine Chukwuebuka Okafor, applauded NERC’s approval of special compensation for eligible Band A electricity customers affected by grid generation constraints between February and March 2026.
He described the directive as “a progressive and consumer-oriented decision aimed at protecting electricity users while ensuring stability in the Nigerian Electricity Supply Industry.”
According to Okafor, the decision to compensate Band A customers who received inadequate electricity supply despite paying premium tariffs demonstrates the need to balance consumer protection with the operational realities confronting electricity distribution companies.
He noted that the generation shortfalls recorded during the period were largely triggered by inadequate gas supply and the vandalism of critical gas and transmission infrastructure, factors that were beyond the direct control of Distribution Companies (DisCos).
“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,” he said.
Okafor explained that the compensation framework, which provides token energy credits for prepaid customers and bill adjustments for postpaid customers, offers meaningful relief to affected consumers without disrupting existing technical and administrative electricity supply arrangements.
While reaffirming SEECA’s support for accountability in the power sector, he stressed that electricity consumers should only pay for the quality and duration of service they receive.
“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 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 stated.
The SEECA Coordinator called on the Enugu State Electricity Regulatory Commission (EERC) and other electricity regulatory agencies across the South-East to emulate NERC by introducing compensation mechanisms for affected customers instead of relying solely on feeder downgrades whenever generation constraints occur.
He cautioned against what he described as the planned mass migration of electricity consumers from existing tariff bands to lower bands as a routine response to generation challenges.
“The planned mass movement of consumers from existing tariff bands to lower bands as a routine response to generation challenges 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,” Okafor warned.
He argued that regulatory decisions must strike a careful balance between consumer welfare and the long-term sustainability of the electricity market, noting that a stable tariff structure backed by transparent compensation mechanisms would encourage greater investment, efficient network management and improved consumer confidence.
Okafor reaffirmed SEECA’s commitment to constructive engagement with electricity regulators, Distribution Companies and other stakeholders to ensure that policies in the power sector promote fairness, accountability, improved service delivery and sustainable access to electricity for residents and businesses across the South-East.
