On the secondary side of a flyback switching power converter, a compensation diode and a voltage divider with an averaging circuit generate an output current-compensated reference voltage that is proportional to converter output current. The current-compensated reference voltage is added to a regulation feedback controller reference voltage, which in turn adjusts the negative feedback signal to the PWM regulation controller on the primary side in proportion to the converter output current draw. The net effect is to increase the converter output voltage set-point in proportion to the converter output current draw as compensation for a voltage drop in a cable connecting the converter to a powered device. More precisely-regulated voltage levels may be delivered to an input of the powered device as a result.