The Enugu State Electricity Regulatory Commission (EERC) has reiterated that its recent tariff order, which reduced the electricity tariff for Band A customers from N209/kWh to N160/kWh, in no way tampered with the prevailing cost of power generation in Nigeria.
The Commission insisted that, based on MainPower’s verified operational costs, there was no valid reason to retain the Band A tariff at N209 per kWh within Enugu State.
This clarification followed concerns raised by some power sector stakeholders, including Generation Companies (GenCos), over the tariff order issued to MainPower Electricity Distribution Limited, a subsidiary of the Enugu Electricity Distribution Company (EEDC).
The new order, effective August 1, 2025, reduced Band A tariffs while freezing tariffs for all other bands in the state.
In a statement issued on Wednesday by Barr. Reuben Okoye, EERC’s Commissioner for Electricity Market Operations, the Commission emphasized that although it inherited the existing tariff framework, it is determined to build “a sub-national electricity market that is transparent, accountable, reliable and sustainable,” hence the need to review utility costs of service.
“The Order is for MainPower’s operation in Enugu State. It does not affect electricity services in other states, between states and across the country,” the statement read.
EERC stressed that the cost of delivering power from the National Grid to MainPower via EEDC was fully accommodated.
“We did not tamper with that cost at all in our tariff determination, but rather adopted it.
Our Order ensures that MainPower recovers all its efficient costs and makes reasonable return in its business of providing electricity services to citizens of Enugu State.
Considerations and reconsiderations of the MainPower tariff application and data still present the same outcome that ensures full payment of invoices to all parties,” the Commission added.
On why the tariff was reduced, the statement explained:
“Having gone through our rigorous process, EERC has no rationale or justification to keep Band A at N209 in the State.
EERC has not removed a kobo from the generation and transmission costs of delivering power to Enugu State, but rather included the exact costs to ensure complete payment of MainPower’s portion of the Nigerian Bulk Electricity Trading (NBET) invoices. Also, MainPower’s share of EEDC’s debts arising from CBN’s interventions in the NESI were included in the tariff.
EERC and MainPower also reviewed all the relevant data/information provided by MainPower for its tariff determination to ensure accuracy.”
The Commission invited critics to provide contrary evidence:
“We are willing to entertain any evidence that shows that our methodology, analysis, computation and output are wrong. The total focus on the reduction of Band A tariff by some commentators is rather unfair to the Commission and to electricity consumers in Enugu State.”
EERC further explained that with more customers migrating to Band A, the cost of service delivery would naturally reduce as it would be spread across more paying customers.
“The emerging issue or question is: should customers in Enugu State be over-billed for electricity services and if so, for whose benefit?
The fact remains that GenCos will not get the over-recovery from any Subco until cost-reflective tariff is adopted across board in the country. So, their present concerns are misdirected,” the statement added.
The Commission assured stakeholders of continued engagement:
“We stand ready to provide clarification as well as engage concerned stakeholders so as to provide assurances regarding the Order. Again, for emphasis, let us be clear that this tariff Order is only applicable to Enugu State, as it was developed after considering the circumstances, information and data of MainPower in the State.”
EERC concluded by inviting GenCos to explore business opportunities in the state:
“We invite GenCos that are ready to operate with effective contracts based on a willing-buyer, willing-seller commercial arrangement to consider setting up power plants in Enugu State. We will consider and approve your PPA and tariff for them to do their business, as the PPA cost will be a natural pass-through in the tariff,” the Commission said.
