New Electricity Tariff for Band A Customers in Enugu State
The Enugu State Electricity Regulatory Commission (EERC) has introduced a revised tariff order for MainPower Electricity Distribution Limited, marking a significant change in the cost of electricity for Band A customers. The new rate has been reduced from N209 per kilowatt-hour to N160/kWh, effective August 1, 2025. This decision aims to reflect the actual costs of power generation and ensure that consumers benefit from a fair and transparent pricing structure.
MainPower is the utility that took over operations from the Enugu Electricity Distribution Company after the state received approval from the Nigerian Electricity Regulatory Commission (NERC) to manage its own electricity market. The updated tariff is outlined in the EERC’s Order No. EERC/2025/003 titled ‘Tariff Order for MainPower Electricity Distribution Limited 2025,’ which was issued on Sunday.
The commission emphasized that the new tariff is cost-reflective, meaning it aligns with the actual expenses involved in generating and distributing electricity. It also highlighted the role of the Federal Government in subsidizing power generation, which helps reduce the overall cost for consumers. According to the EERC, this subsidy allows for a lower tariff, ensuring affordability while maintaining the quality of service.
Legal Framework Behind the Tariff Adjustment
The decision to implement the new tariff is grounded in the Enugu State Electricity Law 2023, which grants the EERC authority to regulate electricity distribution within the state. This law was signed by Governor Peter Mbah in September 2023 and is a result of the 2023 Constitutional Amendment, which strengthened the legislative powers of states over electricity matters.
Additionally, the passage of the Electricity Act 2023 replaced the Electric Power Sector Reform Act of 2005. This new legislation introduced key changes such as separating distribution and supply operations and empowering states to manage their own electricity markets. These legal developments have enabled Enugu to take control of its energy sector and make decisions tailored to the needs of its residents.
Insights from the EERC Chairman
Chijioke Okonkwo, the chairman of the EERC, explained that the reduction in the tariff was necessary after a thorough review of MainPower’s financial and operational data. Using the Tariff Methodology Regulations 2024 and the supporting Distribution Tariff Model, the commission determined an average price of N94. This figure accounts for the government’s subsidy, which covers part of the electricity generation cost.
Okonkwo noted that the current tariff of N160 for Band A customers is designed to ease the transition for consumers. He explained that if the federal subsidy were removed, the savings could help stabilize the tariff over a set period. However, the EERC remains committed to keeping the tariff cost-reflective and free from state subsidies.
Challenges and Future Outlook
Despite the positive adjustments, Okonkwo warned that the N160 Band A tariff may not be sustainable if the federal subsidy is withdrawn. In such a scenario, electricity costs could rise beyond the current rates, posing challenges for consumers. Nevertheless, he emphasized that the current tariff is a fair reflection of the existing support structures and ensures that Enugu residents benefit from lower costs.
The EERC has also implemented monitoring and evaluation systems to ensure that MainPower meets its service commitments. These measures are intended to prevent customers from paying more for less power. For example, MainPower is required to publish daily updates on the average hours of supply for each Band A feeder. If the company fails to meet its service standards for two consecutive days, it must report the issue to the EERC within 24 hours. After seven consecutive days of poor performance, the affected feeder will be automatically downgraded.
Conclusion
The introduction of the new tariff marks a significant step in Enugu’s efforts to manage its electricity market independently. By aligning tariffs with actual costs and ensuring transparency, the EERC is working to provide a reliable and affordable power supply for residents. While challenges remain, the commission remains focused on maintaining a balance between affordability and sustainability for all consumers.
