Starting from August 1, 2025, Band A customers in Enugu will be paying ₦160 per Kwh, down from ₦209 per Kwh, effective from August 1, 2025, while other Bands B, C, D and E prices will remain the same.
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The new tariff was issues by the Enugu State Electricity Regulatory Commission (EERC) to MainPower Electricity Distribution Limited, the utility that succeeded Enugu Electricity Distribution Company (EEDC) for electricity distribution in the state.
Enugu State Electricity Regulatory Commission (EERC) is an independent body established in 2023 by Enugu State Electricity Law. Its mission is to regulate electricity supply and develop a robust electricity market within Enugu State.
In the Commission’s Order No. EERC/2025/003 entitled “Tariff Order for MainPower Electricity Distribution Limited 2025, issued by the Commission at the weekend, it said the decision was cost reflective.
EERC insisted that tariff must reflect power generation subsidy by the federal government for the benefit of electricity consumers.
The Commission predicated its action on the Enugu State Electricity Law 2023, which empowers the it to regulate the activities of operators in power generation, transmission, and distribution in and exclusively for the state.
EERC Chairman, Chijioke Okonkwo while explaining the rational behind the tariff review, said that the reduction in tariff became imperative following the Commission’s review of MainPower’s tariff and licence applications as the new subsidiary company (SubCo) that operates in Enugu State.
“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 because the Federal Government has been subsidising electricity generation cost which charges only ₦45 out of the actual cost of ₦112. That was how we came about the average tariff of ₦94 as cost reflective tariff at our level as a subnational electricity market.
“Breaking this across the various tariff bands means that Band A will be paying ₦160 while other Bands B, C, D, and E are frozen.
“Band A, at ₦160 will help MainPower to 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,” Okonkwo stated.
However, he noted that the ₦160 Band A tariff could be difficult to sustain should the Federal Government remove the generation tariff subsidy currently being enjoyed by electricity consumers throughout the country, as tariffs would most likely rise beyond these new rates.
“But until then, it is only right that Ndi Enugu – Band A customers enjoy the reduced tariff effective August 1, 2025,” the Commission’s Chairman added.
To ensure compliance, the commission said it had put in place monitoring and evaluation systems and guidelines to ensure MainPower’s complaince.
“MainPower is obliged to publish daily on its website a rolling seven-day average daily hours of supply on each Bank A feeder no later than 9am of the next day.
“Where MainPower fails to deliver on the committed level of service on 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.
“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,” the Commission concluded.
Background on how we got here
- In June 2024, President Bola Tinubu assented to the electricity bill, which authorises states, companies, and individuals to generate, transmit and distribute electricity.
- On October 22, 2024, Enugu State took control of electricity regulation with the launch of the Enugu State Electricity Regulatory Commission.
- Nigeria Electricity Regulatory Commission (NERC) transfer regulatory oversight to the EERC.
- EERC licensed Mainpower Electricity Distribution Limited to replace the Enugu Electricity Distribution Company (EEDC) in distributing electricity in Enugu State. Mainpower is a subsidiary of the EEDC, which has been in charge of power distribution in the South-east.
- The Commission also licensed Fedikore Limited to build a power plant with a capacity of 10 megawatts.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
