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South-East electricity consumers have welcomed a new compensation order from the Nigerian Electricity Regulatory Commission (NERC), while warning against any move to push customers down to lower tariff bands. The South East Electricity Consumers Association (SEECA) called the directive a consumer-friendly step that should help stabilise the power sector.
What NERC approved
NERC recently approved a special compensation package for eligible Band A customers affected by power-supply shortfalls caused by grid generation constraints between February and March 2026. Under the order, Band A feeders that delivered fewer than 18 hours of supply daily would not be downgraded for the covered period.
Instead, affected non-maximum-demand customers are to receive compensation equal to 20 percent of their approved February 2026 energy cap, while maximum-demand customers get 20 percent of the average energy billed that month. The aim is to refund customers who paid premium rates without getting the promised hours of power.
What SEECA is asking for
Speaking to reporters in Enugu, SEECA coordinator Dr Sebastine Chukwuebuka Okafor described the compensation as a progressive and consumer-oriented decision. He said it protects electricity users while keeping the wider supply industry stable, and urged distribution companies to implement it fully and transparently.
But the association cautioned against what it called the routine downgrading of customers from higher to lower tariff bands whenever generation falls short. SEECA argued that mass band reclassification creates technical, administrative and operational problems and risks shifting the burden back onto consumers.
Why South-East electricity matters
SEECA has long warned that the region is losing billions of naira to an unreliable power supply, which it says hampers businesses and slows economic growth. The association has previously charged state governors to invest directly in electricity generation rather than wait for national fixes.
Band A customers are meant to enjoy at least 20 hours of daily supply in exchange for higher tariffs. When that promise is not met, consumers say they are effectively overcharged, fuelling demands for clear compensation rules and tighter monitoring of the distribution companies.
What happens next
Distribution companies are expected to begin applying the compensation in line with the NERC directive, with some operators in other regions already moving to credit affected customers. SEECA says it will watch implementation closely to ensure consumers actually receive what they are owed.
How the compensation will work
For ordinary households, the refund is expected to appear as a credit on future bills rather than as a cash payout, reducing what affected customers owe in the coming billing cycles. Businesses on maximum-demand tariffs would see their adjustment calculated from their average billed energy. Consumer advocates say the value to each customer will depend on how strictly the distribution companies apply the formula.
NERC introduced the Band A category to tie higher tariffs to a promise of near-constant power. When feeders fall short of the agreed hours, the regulator can order refunds or block downgrades, tools it says are meant to keep the distribution companies honest. The South-East case is being watched as a test of how firmly those rules are enforced.
SEECA says it will keep engaging both NERC and the regional distribution company on behalf of consumers. The group wants regular public reporting on supply hours so customers can verify whether they qualify for compensation.
For South-East electricity users, the test will be whether the refunds appear on their bills and whether the warning against band downgrades is heeded. The association says reliable power, not just compensation, remains the long-term goal.
