SEECA backs NERC's consumer-friendly directive but cautions that routine feeder downgrades could create "technical and operational difficulties" for the region.
The South East Electricity Consumers Association (SEECA) has described the Nigerian Electricity Regulatory Commission's (NERC) approval of special compensation for Band A customers affected by grid generation constraints as a "progressive and consumer-oriented decision," while simultaneously warning regulators in the South-East against resorting to mass tariff band downgrades as a routine response to power supply challenges .
Speaking with journalists in Enugu on Monday, SEECA Coordinator Dr. Sebastine Chukwuebuka Okafor said the compensation framework, which provides token credits for prepaid customers and bill adjustments for postpaid customers, strikes an important balance between consumer protection and the operational realities facing electricity distribution companies (DisCos) .
Compensation Framework: What NERC Approved
NERC's directive, issued in June 2026, covers the period from February to March 2026 when significant generation shortfalls—largely caused by inadequate gas supply and vandalism of critical gas and transmission infrastructure—affected the ability of DisCos to meet committed service levels for Band A customers .
Under the framework:
· Feeders with 18–20 hours supply: Existing compensation under Addendum No. NERC/2024/003 applies
· Feeders with less than 18 hours: Affected feeders will not be downgraded during the covered period
Eligible Non-Maximum Demand customers will receive compensation equivalent to 20% of the approved February 2026 energy cap for their feeder, while Maximum Demand customers will receive 20% of the average energy billed per customer in February 2026. Compensation for February 2026 must be completed by 31 May 2026, and for March 2026 by 30 June 2026 .
SEECA's Stance: A Balanced Approach
Okafor noted that the generation shortfalls were circumstances beyond the direct operational control of DisCos, making NERC's decision not to automatically downgrade affected Band A feeders but rather provide compensation a "well-thought-out regulatory intervention" .
"SEECA strongly supports accountability in the electricity sector and the principle that consumers should only pay for the quality and duration of service received," Okafor stated. "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" .
Warning Against Mass Downgrades
The SEECA coordinator specifically warned against what he described as 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 .
He 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 .
Consumer Confidence and Sector Stability
Okafor maintained that regulatory actions should balance consumer welfare with market sustainability, noting that a stable tariff structure supported by transparent compensation mechanisms would encourage improved investment, efficient network management, and greater consumer confidence .
SEECA reaffirmed its commitment to constructive engagement with electricity regulators, DisCos, and other stakeholders to ensure policies promote fairness, accountability, improved service delivery, and sustainable electricity access for residents and businesses in the South-East .
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