Electricity regulatory agencies and distribution companies operating in the South-East zone have been urged to adopt the compensation model approved by the Nigerian Electricity Regulatory Commission (NERC) to compensate Band A consumers affected by power interruptions.
The Coordinator of the South East Electricity Consumers Association(SEECA), Dr Sebastine Chukwuebuka Okafor, made the call Monday in a chat with journalists at Enugu, saying that it was wrong to ďowngrade electricity consumers on Band A instead of paying them compensation for inconveniences suffered due to poor power supply.
NERC had recently approved special compensation for eligible Band A electricity customers affected by power interruptions due to grid generation constraints between February and March 2026.
But in contrast, the Enugu Electricity Regulatory Commission(EERC) last month officially downgraded 59 electricity feeders under the MainPower Electricity Distribution Company Limited to lower tariff bands due to a failure to meet the minimum required daily hours of power supply.
Okafor said that the compensatory approach adopted by NERC was a welcome development, describing the directive as “a progressive and consumer-oriented decision aimed at protecting electricity users”.
He noted that the implementation of such compensatory intervention by NERC would ensure stability in the Nigerian electricity supply industry.
According to him, the decision by NERC to compensate Band A customers who experienced inadequate electricity supply despite paying higher tariffs “demonstrates the importance of balancing consumer protection with the operational realities facing electricity distribution companies”.
Okafor noted that the generation shortfalls experienced within the period of disruption were largely attributed to inadequate gas supply and the vandalism of critical gas and transmission infrastructure.
He said that such occurrences were beyond the direct operational control of Distribution Companies (DisCos), hence NERC’s decision not to automatically downgrade affected Band A feeders but rather provide compensation was a well-thought-out regulatory intervention.
The SEECA Coordinator pointed out that the compensation framework, which provides token credits for prepaid customers and bill adjustments for postpaid customers, thereby 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 asserted that 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 compensatory strategy like NERC.
According to him, such 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 or tarrif bands would create additional technical, administrative, and operational difficulties in electricity distribution, energy planning, and service management, which could have negative consequences for electricity 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 said.
The Coordinator reiterated SEECA’s commitment to constructive engagement with electricity regulators, DisCos and other stakeholders. This, he said, was 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.
