The Nigerian Independent System Operator (NISO) has intervened, in a bid to resolve the crisis in the Enugu State Electricity Market, occasioned by the recent order issued by the Enugu State Electricity Regulatory Commission (EERC).
The Enugu Electricity Distribution Company, had reduced electricity supplied to Enugu State market, following the recent tariff order issued to its subsidiary company, MainPower Electricity Distribution Limited by the Enugu Electricity Regulatory Commission which reduced Band A electricity tariffs from N209/kwh to N160/kwh effective from August 1st, 2025.
Abdul Mohammed, managing director, NISO, who addressed a stakeholders’ engagement in Abuja on Wednesday, said there was need to ensure the integrity of contracts and preventing disruptions to supply at the Transmission Company of Nigeria–DisCo interfaces.
According to him, while the Electricity Act 2023 empowers state regulators to set tariffs within their jurisdictions, NISO’s statutory mandate under the Act, Market Rules, and Grid Code obliges it to maintain both the commercial balance and technical stability of the market.
He noted that the decision to reduce power supply by 50 percent in Enugu State, in response to tariff adjustment, could have serious operational implications, particularly at the TCN–DisCo interfaces where power transfer capacity Service Level Agreements are managed.
“We are meeting today in light of the recent Order issued by the Enugu State Electricity Regulatory Commission revising the electricity tariff within Enugu State. This development, while within the remit of state-level regulatory authority under the Electricity Act 2023 (as amended), has naturally drawn significant attention from different quarters of our industry.
“Notably, we have received communication from the Enugu Electricity Distribution Company indicating that, in reaction to the tariff adjustment, they initiated curtailment of power supply to Enugu State by up to 50 per cent.
“Such a measure, if implemented, could have serious operational implications, particularly at the TCN–DisCo interfaces where power transfer capacity Service Level Agreements are managed.
“It has also prompted necessary questions about how such decisions interact with the operations, dispatch, commercial arrangements, and financial equilibrium of the Nigerian Electricity Supply Industry as a whole,” he said.
The meeting, he said is aimed to ensure that no action disrupts the Nigerian Electricity Market stability, the integrity of contracts, or operational obligations that guarantee reliable supply.
Speaking further, Mohammed noted that fair electricity prices, sustainable business operations, and a stable electricity market are not mutually exclusive goals, but interdependent. Adding that all three requires dialogue, transparency, and coordination among all relevant institutions.
“Let me be clear from the outset: NISO approaches this discussion with neutrality, respect, and an open mind. We are not here to question the authority of the Regulator or the Operators.
“We fully recognise the statutory powers of the Enugu State Electricity Regulatory Commission to regulate activities within its jurisdiction, and equally acknowledge the license and operational responsibilities of the Enugu Electricity Distribution Company in serving its customers.
“Our mandate obliges us to safeguard the integrity of the market settlement framework, ensure contractual obligations are respected, and maintain the delicate balance that allows every participant, from Generators to Distributors, from Regulators to Consumers, to operate in a financially sustainable and technically reliable environment.
“We believe that fair electricity prices, sustainable business operations, and a stable electricity market are not mutually exclusive goals, they are interdependent. Achieving all three requires dialogue, transparency, and coordination among all relevant institutions, Mohammed said.
