The Enugu State Electricity Regulatory Commission (EERC) has approved a new tariff for MainPower Electricity Distribution Limited, which took over from Enugu Electricity Distribution Company (EEDC). The updated regulation cuts the Band A electricity rate from N209 per kilowatt-hour (kWh) to N160/kWh.
EERC issued the order, marked EERC/2025/003 and titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” over the weekend.
In a statement on Sunday, EERC described the new order, effective August 1, as cost-reflective, with the tariff designed to incorporate the federal government’s subsidy on power generation for the benefit of electricity consumers.
According to the regulator, the move was based on the Enugu State Electricity Law 2023, which authorizes the commission to regulate electricity generation, transmission, and distribution exclusively within the state.
“This law, signed by Governor Peter Mbah of Enugu State in September 2023, is pursuant to the 2023 Constitutional Amendment, which firmly established the legislative authority of the states on electricity matters within their states,” the statement reads.
“This was followed by the passage of the Electricity Act 2023, which repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, empowering states to regulate their own electricity markets.”
EERC to Monitor MainPower for Compliance with Tariff Regulations
EERC stated that monitoring and evaluation systems, along with clear service guidelines, have been instituted to ensure MainPower adheres to its service commitments, ensuring that customers are not overcharged for inadequate supply.
“MainPower is obliged to publish a daily average of the previous seven days of supply on each Band A feeder no later than 9 a.m. the following day,” the commission noted.
“Should MainPower fail to deliver the committed level of service on a Band A feeder for two consecutive days, the company must report this to the Commission within 24 hours.”
Furthermore, any Band A feeder that fails to meet its dedicated service level for seven consecutive days will be automatically downgraded to reflect its actual level of supply.
The commission emphasized its commitment to collaborating with “industry developers, investors, customers, and stakeholders to develop and implement strategies and solutions to improve electricity services and accessibility for all citizens of the state, highlighting this as a win for the establishment.”
In discussing the development, Chijioke Okonkwo, EERC chairman, stated that the tariff cut followed a comprehensive review of MainPower’s tariff and licensing applications as a newly licensed subnational operator in Enugu State.
“We reviewed their costs using our Tariff Methodology Regulations 2024 and the supporting Distribution Tariff Model to arrive at an average price of N94,” he said.
“The price is low primarily due to the Federal Government’s subsidy on electricity generation costs, which charges only N45 out of the actual cost of N112. This led us to determine N94 as the cost-reflective tariff within the subnational electricity market.”
He added, “The actual purchase power agreement (PPA) costs incurred by MainPower for power sourced outside the federally subsidized framework will trigger automatic adjustments to accommodate those prices since they will not benefit from the subsidy.”
Breaking it down across the different tariff bands means that Band A will pay N160 while other Bands B, C, D, and E remain unchanged.
“Setting Band A at N160 will help MainPower manage the rate shock. If the subsidy is removed, these savings will aid in stabilizing the tariff over a specified period,” Okonkwo noted.
He assured that the tariff would consistently remain cost-reflective without requiring financial support from the state government.
However, he cautioned that the current Band A rate of N160 may become unsustainable if the federal government withdraws the existing subsidy on generation, potentially leading to tariffs exceeding the new benchmark.
Until that time, he concluded, it is only fair that “Ndi Enugu – Band A customers” benefit from the reduced tariff starting August 1.