EERC Slashes Band A Tariff From N209 To N160 Per Kwh

The Enugu State Electricity Regulatory Commission (EERC) has issued a new tariff to MainPower Electricity Distribution Limited, mandating it to review electricity tariff for Band A from N209 to N160 per kWh effective from August 1, 2025.

MainPower Electricity Distribution Limited succeeded Enugu Electricity Distribution Company (EEDC) as a distribution company in the state.

The directive was contained in the Commission’s Order No. EERC/2025/003 with the title: “Tariff Order for MainPower Electricity Distribution Limited 2025,” issued at the weekend.

EERC said the decision was cost reflective, insisting 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 Commission to regulate the activities of operators in power generation, transmission, and distribution in, and exclusively for the state.

This law, signed by Governor Peter Mbah in September 2023, is pursuant to the 2023 Constitutional Amendment, which established the legislative authority of state governments on electricity matters within their states.

LEADERSHIP recalls that this was followed by the passage of the Electricity Act 2023, that repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, and empowers states to regulate their own electricity markets.

Throwing more light on the development, EERC Chairman, Chijioke Okonkwo, 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 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,” Okonkwo stated.

He noted, however, that the N160 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.

Meanwhile, EERC also said it had put in place monitoring and evaluation systems and guidelines to ensure MainPower’s compliance with service commitments so that its customers do not pay more for less power.

“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.”

He expressed the Commission’s commitment 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.