Mainpower Electricity Distribution Company has filed a formal petition before the Enugu Electricity Regulatory Commission (EERC), seeking the immediate suspension of the tariff reduction order recently issued by the Commission.
The petition, dated August 14, 2025, followed the tariff order of the EERC which took effect on August 1, 2025. The order reduced tariffs for Band A customers from N209/kwh to N160.40/kwh, while freezing tariffs for Bands B and C.
The decision was widely condemned by the National Electricity Regulatory Commission (NERC), Generation Companies (Gencos), other Distribution Companies (Discos), as well as the Federal Ministry of Power, who all described the order as “unsustainable” and urged the EERC to reverse it. However, the Commission stood its ground.
Mainpower has now approached the Commission with a petition, supported by a four-paragraph affidavit and signed by its Managing Director/CEO, Dr. Ernest Mupwaya.
The company is asking for “a review of order No. EERC/2025/003: Tariff Order for Mainpower Electricity Distribution Limited 2025 to avoid loss of revenue due to downward review of tariff.”
The EERC is listed as the sole respondent to the petition, which was filed pursuant to Section 36 of the Constitution of the Federal Republic of Nigeria (1999, as amended), alongside various provisions of the Enugu State Electricity Regulatory Commission regulations and tariff methodology.
Mainpower stated that the tariff order published by the Commission on July 18, 2025, was not agreed upon by both parties and failed to comply with Regulation No. EERC/R004: Methodology for Tariff Regulation, 2024.
Quoting Section 4.1(c) of the regulation, the company argued that:
“In order to avoid ‘Gold-Plating’ in the tariff using rate of return regulation, the licensee shall be required to review cost with the Commission. It is the cost agreed with the Commission that shall be allowed for the operator to use in the tariff model for the determination of price that shall apply in contracts.”
The company added that Schedule 1 of the same regulation requires the Commission to subject unresolved cost disagreements to a formal hearing within 21 days.
Mainpower disclosed that after submitting the required data, it was invited by the EERC to a three-day engagement meeting between July 2 and 4, 2025. According to the company, no agreement was reached on critical cost parameters during those sessions.
The company said:
“The Petitioner was surprised that the Respondent, without agreement on these important and tariff-sensitive parameters, proceeded to conclude the tariffs and publish the Tariff Order on Friday, 18th July, 2025.”
Mainpower further noted that despite this, another meeting was scheduled for July 25, 2025, to address its concerns, especially as the tariff threatened its vesting contract arrangement with Enugu Electricity Distribution Plc (EEDC) and Nigerian Bulk Electricity Trading Plc (NBET).
The company said that following its presentation on July 25, the Commission, in a letter dated July 30 but received via email on July 31, insisted on implementing the tariff order from August 1, 2025.
Mainpower warned that the implementation of the tariff order would have devastating consequences.
It outlined the following impacts:
- Financial Impact (Aug–Dec 2025): “The tariff creates an average monthly revenue shortfall of between N1.3 billion and N1.5 billion, resulting in a cumulative gap of about N6.98 billion over five months. Compliance with NBET and Market Operator (MO) settlement obligations is expected to drop from about 97% to an estimated 81% by the end of 2025, posing a business sustainability risk.”
- Disconnection Risk: “The electricity supplied to the Enugu State Electricity Market flows from the Vesting Contract between EEDC and NBET, with tariffs approved by NERC at N209/kwh for Band A and N67/kwh for Bands B–C. If Mainpower cannot meet its remittance obligations, which affects EEDC, this will inevitably lead to the disconnection of supply to Mainpower.”
- Investment Impact: “MainPower’s planned capital expenditure programme valued at N33.2 billion, covering network expansion, feeder automation, and the installation of 350,000 smart meters, is at risk. If metering rollout is halted, over 42% of customers will remain unmetered beyond Q1 2026, perpetuating inefficiencies and revenue leakages.”
- Operational Impact: “Reduced funding will limit the company’s ability to maintain and repair critical infrastructure, increasing the likelihood of outages and customer complaints. Additionally, dissatisfaction with service levels is expected to drive more customers toward self-generation, further eroding revenue.”
- Strategic & Reputational Impact: “The undervaluation of MainPower’s asset base weakens the company’s balance sheet and reduces investor confidence. There is also a heightened risk of industrial action if the company struggles to meet payroll and vendor obligations, potentially damaging its reputation and operational stability.”
Mainpower, therefore, prayed for an order of the Commission suspending the application of the Tariff Order pending determination of its case, and for a review to approve either Scenario 1 of N206.80/kwh or Scenario 2 of N194.54/kwh as contained in its petition.
