Enugu State Electricity Regulatory Commission on it Again, Announces Reduction on Tariff…details
The Enugu State Electricity Regulatory Commission has announced a reduction in the Band A electricity tariff rate, lowering it from N209 per kilowatt-hour to N160 per kilowatt-hour. This change will take effect starting August 1, 2025.
It is outlined in the Commission’s Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” which was released by the Commission over the weekend.
The statement explained that their decision was based on cost considerations, emphasizing the need for tariffs to align with the government subsidy on power generation to benefit electricity consumers.
EERC based its decision on the Enugu State Electricity Law of 2023, which grants the Commission the authority to oversee the operations of those involved in power generation, transmission, and distribution specifically within the state.
Governor Peter Mbah of Enugu State signed this law in September 2023, following the 2023 Constitutional Amendment that clearly affirmed the states’ legislative power over electricity matters within their own borders.
Following this, the Electricity Act of 2023 was enacted, which replaced the Electric Power Sector Reform Act of 2005. This new legislation brought about significant changes, including the division of distribution and supply functions and granting states the authority to oversee their own electricity markets.
Providing further insight into the development, EERC Chairman Chijioke Okonkwo explained that the tariff reduction was necessary after the Commission reviewed MainPower’s tariff and licensing applications for their new subsidiary company (SubCo), which operates in Enugu State.
He said, “We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94.
“The price is low because the Federal Government has been subsidising electricity generation cost which charges only N45 out of the actual cost of N112.
“That was how we came about the average tariff of N94 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 N160 while other Bands B, C, D, and E are frozen.
“Band A, at N160 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.”