Enugu Crashes Band A Tariff By ₦49 Per KWH

July 21, 2025
electricity meters
electricity meters

The Enugu State Electricity Regulatory Commission (EERC) has issued a new tariff to the utility that succeeded Enugu Electricity Distribution Company (EEDC), MainPower Electricity Distribution Limited, for electricity distribution in the state, reviewing the electricity cost for Band A from ₦209/ kWh (per kilowatt-hour) to ₦160 kWh.

The new tariff price takes effect from August 1, 2025.

This was contained in the Commission’s Order No. EERC/2025/003 entitled “Tariff Order for MainPower Electricity Distribution Limited 2025, was issued at the weekend.

It said its decision was cost-reflective, insisting that the tariff must reflect the federal government’s power generation subsidy for the benefit of electricity consumers.

EERC 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.

The Law, signed by the Governor of Enugu State, Peter Mbah,  in September 2023, is under the 2023 Constitutional Amendment, which firmly established the legislative authority of the states on electricity matters within their states.

See also  Peter Obi: LP Senators Ask Okpebholo To Withdraw Comment, Apologise To Nigerians

This was followed by the passage of the Electricity Act 2023, which repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, and empowered states to regulate their electricity markets.

Throwing more light on the development, the 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 ₦94.

“The price is low because the Federal Government has been subsidising electricity generation cost, which charges only ₦45 out of the actual cost of ₦112. That was how we came about the average tariff of ₦94 as a cost-reflective tariff at our level as a subnational electricity market.

See also  UNICAL: No Student Should Suffer For Leadership Failures — Obi

“Breaking this across the various tariff bands means that Band A will be paying ₦160 while other Bands B, C, D, and E are frozen.

“Band A, at ₦160, 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 ₦160 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.

See also  Police Stop Pro-Peter Obi Rally In Kaduna, Vow To Arrest Violators

“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 9 am 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,” the Commission concluded.

wakacommunity
Advert 300 x 600

Subscribe to OurNewsletter

The Beacon NG Newspaper