NISO Intervenes In Enugu Tariff Dispute As 50% Power Cut Persists

The Nigerian Independent System Operator (NISO) on Wednesday stepped into the escalating dispute between the Enugu State Electricity Regulatory Commission (EERC) and the Enugu Electricity Distribution Company (EEDC) over the sharp reduction in electricity tariffs in Enugu State.

This intervention follows EEDC’s reported reduction of the state’s power supply by up to 50 per cent in response to the tariff cut ordered by EERC.

The tariff adjustment, which lowered Band A rates to N160 per kWh, has sparked criticism from federal regulators and industry stakeholders who warn that such unilateral decisions without industry-wide coordination threaten Nigeria’s electricity sector’s financial viability and operational stability.

At a stakeholders’ meeting in Abuja, NISO managing director/CEO, Engr. Abdu Mohammed emphasised that the gathering was convened to protect the stability of the national electricity market. He noted the importance of preserving the integrity of contracts and preventing disruptions at the interface between the Transmission Company of Nigeria (TCN) and distribution companies like EEDC.

LEADERSHIP reports that since August 1st this year, some parts of Enugu have been living in darkness due to a disco company’s recalcitrant attitude as a result of the 50 per cent cut in electricity supply to Mainpower Electricity Distribution Company, the sub-company of EEDC, following Enugu State’s electricity market decentralisation

Mohammed acknowledged that while the Electricity Act 2023 allows state regulators to set tariffs within their jurisdictions, NISO’s mandate under the law, Market Rules, and Grid Code requires it to maintain commercial balance and technical stability across the market. He stressed that any action materially impacting market operations, settlements, or service agreements must be negotiated collaboratively to safeguard the industry’s sustainability.

“We understand the statutory authority of the Enugu State Electricity Regulatory Commission and the operational responsibilities of the Enugu Electricity Distribution Company. However, our mandate is to ensure the integrity of the market’s settlement framework and to maintain a balanced, financially sustainable, and technically reliable electricity supply environment for all stakeholders,” Mohammed said.

He called for transparency, mutual respect, and coordination among regulators, operators, and stakeholders to achieve fair electricity pricing, sustainable operations, and a stable market, which are inherently interdependent goals.

The NISO intervention aims to prevent further disruption and foster dialogue to resolve the tariff dispute without jeopardising the stability of the national electricity supply industry.

Meanwhile, A resident of Edinburgh who identified himself as Ifeanyi berated Mainpower over the power outage and described it as a fight back.

“How can Mainpower refuse to give light to people because of the wonderful directive from the Enugu Electricity Distribution Company to reduce their tariff. Their parents’ company, EEDC, exploited residents of Enugu for many years without metering people; we call on EERC to call them to order,” he stated.

“This is a fightback, but we, electricity consumers, will use all legal means to fight back and support EERC to correct all these exploitations by EEDC and now Mainpower.

Another resident of the affected areas, Ifeoma Ibekwe, said they had been experiencing power outages for four days now because Mainpower refused to give them light because of the new tariff.

“They should be called to order because we suffered so much in the hands of EEDC, and now that their regulator(EERC) has heard our prayers, they are trying to sabotage them. We stand with EERC; they should not be intimidated.” She stated.

Other residents in the affected areas have urged the EERC not to be intimidated.

But, Mainpower Electricity Distribution Limited (MEDL) has explained that the power outages are due to a significant drop in energy allocation from their parent company, Enugu Electricity Distribution Company PLC (EEDC)”

Be that it may, there are strong indications that the power outage may be thing of past as the Enugu State Electricity Regulatory Commission, EERC, has said that it was taking steps to resolve the sudden electricity supply shortages in the state since August.

EERC said it had met with both EEDC and MainpPower, assuring that it was taking the necessary steps to restore normalcy.