The Enugu State Electricity Regulatory Commission (EERC) has announced a significant reduction in electricity tariffs for Band A customers in Enugu State, cutting the rate from N209 per kilowatt-hour (kWh) to N160/kWh.
The new tariff, which takes effect from August 1, 2025, applies to MainPower Electricity Distribution Limited, the company that succeeded the Enugu Electricity Distribution Company (EEDC) in managing power distribution in the state.
This development was contained in the Commission’s latest directive, Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” which was issued over the weekend.
According to the Commission, the revised tariff is cost-reflective and considers ongoing federal government subsidies on electricity generation, intended to cushion the financial burden on consumers.
EERC Chairman Chijioke Okonkwo explained that the decision was based on a detailed review of MainPower’s tariff and license applications, carried out using the Commission’s 2024 Tariff Methodology Regulations and a supporting Distribution Tariff Model.
The analysis arrived at an average cost-reflective tariff of N94/kWh, significantly lower due to the federal government covering part of the actual generation cost, which stands at N112/kWh.
Okonkwo stated that Band A customers would now pay N160/kWh, while rates for Bands B, C, D, and E would remain unchanged.
He noted that the new Band A tariff would help MainPower manage potential rate shocks and allow for gradual tariff stabilization, especially if federal subsidies are eventually withdrawn. However, he warned that the N160 rate could become unsustainable if these subsidies are removed, which would likely lead to higher tariffs.
The Chairman affirmed that the Commission’s action was guided by the Enugu State Electricity Law of 2023, enacted following a constitutional amendment that empowered Nigerian states to regulate electricity markets within their territories.
This was followed by the federal Electricity Act 2023, which repealed the Electric Power Sector Reform Act of 2005 and restructured the sector, including separating distribution from supply operations.
EERC also emphasized the importance of accountability and service delivery under the new tariff structure.
MainPower is now required to publish the average daily power supply for each Band A feeder every morning and report any failure to meet service levels for two consecutive days to the Commission within 24 hours.
If supply falls below the committed level for seven consecutive days, the feeder will be automatically downgraded based on actual performance.
The Commission reaffirmed its commitment to working with stakeholders, investors, and developers to improve electricity access and service delivery across Enugu State.
It described the new tariff framework as a win for electricity consumers and a major step forward in establishing a functional, fair, and sustainable electricity market under state control.
