The Enugu Electricity Regulatory Commission, EERC, has given a new tariff order to MainPower Electricity Distribution Ltd to review electricity cost for Band A customers from N209 per/kWh to N160/kWh.
The latest tariff is expected to take effect from Aug. 1, 2025.
Speaking on the reason behind the reduction, the Chairperson of the EER, Chijioke Okonkwo, said the reduction in tariff followed the commission’s review of MainPower’s tariff and licence applications as the new subsidiary company 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 N94.
“The price is low due to some reasons and including the fact the federal government is subsidising electricity generation cost which comes to a cost of about N45 out of the actual cost of N112 for Enugu State,” Mr Okonkwo explained.
“That was how we came about the average tariff of N94 as cost reflective tariff at our level as a subnational electricity market.”
The chairperson said that the actual Power Purchase Agreement (PPA) cost of purchase made by Mainpower outside the federal government’s subsidised power would trigger automatic tariff adjustment to accommodate the PPA price given that such power would not be subsidised.
“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,” he stated.
Mr Okonkwo, however, said the new N160 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.
“But until then, it is only right that Ndi Enugu – Band A customers enjoy the reduced tariff effective August 1, 2025,” he said.
Mr Okonkwo also announced that EERC 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 9a.m. 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,” he said.
“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 chairperson assured that the commission was committed to working with industry developers, investors and customers to develop access and improve electricity services to Enugu people.
“This is a win for the establishment,” he stated.
Recall that Enugu State Governor Peter Mbah, signed the law in September 2023, following the 2023 Constitutional Amendment that clearly affirmed the states’ legislative power over electricity matters within their own borders.
However, the Enugu Electricity Act of 2023 was thereby replaced the Electric Power Sector Reform Act of 2005.
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