By Chinedu Adonu

The South East Electricity Consumers Association (SEECA) has called on electricity regulators across the South-East to adopt compensation mechanisms for consumers affected by power supply shortfalls, similar to the framework recently approved by the Nigerian Electricity Regulatory Commission (NERC).

The association described NERC’s decision to compensate eligible Band A customers impacted by grid generation constraints between February and March 2026 as a consumer-friendly intervention capable of boosting public confidence in the electricity sector.

Speaking with journalists in Enugu, SEECA Coordinator, Sebastine Okafor, said the regulatory action demonstrated that consumer protection and power sector sustainability could coexist when policies are properly designed.

According to him, the compensation package approved by NERC for customers who paid premium tariffs but received electricity below the prescribed service threshold reflects a commitment to fairness, accountability and responsive regulation.

Okafor noted that the power shortages experienced during the period were largely caused by inadequate gas supply and the vandalism of critical gas and transmission infrastructure across the country.

He argued that since the disruptions were mostly beyond the control of electricity distribution companies (DisCos), NERC’s decision to compensate consumers rather than automatically downgrade affected feeders represented a balanced and pragmatic regulatory response.

“The Commission has demonstrated that consumers deserve protection even when supply deficiencies arise from broader national challenges. Compensation provides relief to customers without creating unnecessary distortions within the electricity distribution framework,” he said.

The SEECA coordinator explained that the compensation arrangement, which includes token credits for prepaid customers and bill adjustments for postpaid consumers, offers a fair remedy while maintaining operational stability within the electricity market.

While reaffirming the association’s support for transparency and accountability in the power sector, Okafor stressed that consumers should always receive value for the services they pay for. He maintained, however, that where electricity shortages are caused by nationwide generation constraints rather than failures by DisCos, compensation should take precedence over feeder downgrades.

He urged the Enugu State Electricity Regulatory Commission and other emerging state electricity regulators in the South-East to institutionalise similar compensation frameworks to safeguard consumers affected by generation-related supply deficiencies.

Okafor also cautioned against the growing practice of moving consumers from higher tariff bands to lower ones as a routine response to generation shortfalls, warning that such measures could create avoidable technical, administrative and commercial challenges within the power sector.

According to him, indiscriminate feeder downgrades could undermine electricity planning, complicate service management, weaken investor confidence and ultimately affect the quality of power supply available to consumers.

He emphasised that sustainable reforms in the electricity industry must balance consumer welfare with the financial viability of power sector operators.

“A stable tariff regime supported by transparent compensation mechanisms will encourage investment, improve operational efficiency and deepen consumer trust in the electricity market,” he said.

Okafor reaffirmed SEECA’s commitment to working with regulators, electricity distribution companies, policymakers and other stakeholders to advance policies that promote fairness, accountability, improved service delivery and sustainable access to electricity for households and businesses across the South-East.

He added that the association would continue to advocate consumer-centred policies while supporting initiatives aimed at strengthening the long-term stability of Nigeria’s power sector.