The Enugu State Electricity Regulatory Commission (EERC) has issued a new tariff order to MainPower Electricity Distribution Limited, reviewing electricity cost for Band A customers from N209 per kilowatt-hour to N160/kWh, effective from August 1, 2025.
MainPower is the utility company that succeeded Enugu Electricity Distribution Company after the state got the approval of the Nigerian Electricity Regulatory Commission (NERC) to control its electricity market.
The new tariff regime was contained in the Enugu commission’s Order No. EERC/2025/003 entitled ‘Tariff Order for MainPower Electricity Distribution Limited 2025’, and was issued by the commission on Sunday.
It said, “its decision was cost reflective, insisting that the tariff must reflect the power generation subsidy by the Federal Government for the benefit of electricity consumers.”
EERC had based its decision 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.
“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.
“This was followed by the passage of the Electricity Act 2023, which repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, and empowers states to regulate their own electricity markets,” the commission said.
Clarifying further on the development, EERC Chairman, Chijioke Okonkwo, said the reduction in tariff became necessary following the commission’s review of MainPower’s tariff and licence applications as the new subsidiary company operating 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 N94. The price is low because the Federal Government has been subsidising electricity generation cost, which charges only N45 out of the actual cost of N112. That was how we came about the average tariff of N94 as a cost-reflective tariff at our level as a subnational electricity market.
“Breaking this across the various tariff bands means that Band A will be paying N160 while other Bands B, C, D, and E are frozen. Band A, at N160, 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 said.
He, however, stated that the N160 Band A tariff could be difficult to sustain should the Federal Government remove the generation tariff subsidy currently being enjoyed by electricity consumers across the country, as tariffs would likely rise beyond these new rates.
“But until then, it is only right that Ndi Enugu – Band A customers enjoy the reduced tariff effective August 1, 2025,” he added.
Meanwhile, EERC also confirmed 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 Band 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 stated.
