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Enugu Electricity Regulator Commission Slashes Tariff, Crashes Band A from N209 to N160 Per Kwh, Freezes Bands B, C, D and E Tariffs

The Enugu State Electricity Regulatory Commission (EERC) has announced a significant reduction in electricity tariff for Band A customers, cutting the cost from ₦209/kWh to ₦160/kWh, effective August 1, 2025. Tariffs for Bands B, C, D, and E remain unchanged.

This adjustment was contained in the Commission’s Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025”, issued over the weekend. The new order applies to MainPower Electricity Distribution Limited, the successor utility to the former Enugu Electricity Distribution Company (EEDC).

According to the EERC, the reduction is part of its mandate under the Enugu State Electricity Law 2023, which empowers the state to regulate power generation, transmission, and distribution within its borders following the 2023 Constitutional Amendment and the Electricity Act 2023.

EERC Chairman Chijioke Okonkwo explained the rationale behind the new tariff:

“We reviewed their entire costs, using our Tariff Methodology Regulations 2024 and the supporting Distribution Tariff Model, to get an average price of ₦94.

The price is low due to some reasons, including the fact that the Federal Government is subsidising electricity generation cost which comes to about ₦45 out of the actual cost of ₦112 for Enugu State. That was how we came about the average tariff of ₦94 as cost reflective tariff at our level as a subnational electricity market.”

He further clarified that:

“The actual PPA cost of any power purchase made by MainPower outside the one subsidized by the Federal Government through the Nigerian Bulk Electricity Trader (NBET) will trigger automatic tariff adjustment to accommodate the PPA price because it will not be subsidized by the Federal Government.”

Breaking down the figures, Okonkwo stated:

“Band A will be paying ₦160 while other Bands B, C, D, and E are frozen. Band A at ₦160 will help MainPower manage the rate shock, and if the subsidy is removed, the savings will assist them in stabilising the tariff over a defined period of time. Nevertheless, at all times, the tariff will be cost reflective and will not require any state subsidy.”

He also noted that the ₦160 Band A tariff might not be sustainable if the Federal Government withdraws the current subsidy:

“But until then, it is only right that Ndi Enugu — Band A customers — enjoy the reduced tariff effective August 1, 2025.”

The Commission assured residents of strict monitoring to ensure MainPower delivers on its service commitments:

“MainPower is obliged to publish daily on its website a rolling seven-day average daily hours of supply on each Band A feeder no later than 9 a.m. of the next day. Where MainPower fails to deliver on the committed level of service on a Band A feeder for two consecutive days, MainPower shall report this to the Commission within 24 hours. Where MainPower fails to meet the committed service level to a Band A feeder for seven consecutive days, the feeder shall be automatically downgraded to the recorded level of supply.”

Reiterating its commitment, the Commission stated:

“The Commission is committed to working with industry developers, investors, customers, and stakeholders to develop and implement strategies and solutions to provide access and improve electricity services to all the citizens of the state, as this is a win for the establishment.”

With this tariff review, Enugu State takes another decisive step in operationalizing its independent electricity market and delivering better value to consumers.

Written by adminreporter

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