South-East consumers advocate for compensation over tariff band downgrades

The South East Electricity Consumers Association has urged regulators to adopt a compensation model for service failures rather than relying on tariff band downgrades, labeling the NERC’s recent compensation initiative a constructive approach.

The South East Electricity Consumers Association (SEECA) has praised the Nigerian Electricity Regulatory Commission (NERC) for its recent decision to provide compensation to Band A power users. This policy specifically addresses customers impacted by grid power shortages during February and March 2026.

During a media briefing in Enugu, SEECA Coordinator Dr. Sebastine Chukwuebuka Okafor highlighted the move as a positive step for consumer rights. He noted that compensating those who paid premium rates despite receiving poor service helps balance consumer interests with the logistical realities faced by utility providers. According to Okafor, external factors like gas supply deficits and infrastructure vandalism—rather than company negligence—were the primary reasons for the supply gaps.

The association highlighted the efficacy of the compensation model, which utilizes energy credits for prepaid users and billing adjustments for postpaid customers. This method provides relief without the need to overhaul technical systems. Consequently, SEECA is urging the Enugu State Electricity Regulatory Commission (EERC) and other regional bodies to adopt this compensation model instead of simply downgrading power lines.

Dr. Okafor cautioned that frequent downgrades of tariff bands could trigger administrative and technical complications for utility companies. He argued that maintaining a consistent tariff structure while offering transparent refunds would better incentivize sector investment and foster long-term stability for residents and local enterprises in the South-East.

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