It is huge relief for consumers in Enugu as MainPower Electricity Distribution Limited, the state’s new electricity distribution company, has crashed tariff for Band A consumers from N209/kwh to N160 kwh, with effective from August 1, 2025.
This crash followed a new tariff issued to MainPower by the state’s Electricity Regulatory Commission (EERC) as contained in the Commission’s Order No. EERC/2025/003 tagged ‘Tariff Order for MainPower Electricity Distribution Limited 2025.’
The Commission, in a statement made available to BusinessDay, explained that the decision was cost- reflective, insisting that tariff must reflect the power generation subsidy by the federal government for the benefit of electricity consumers.
According to the statement, the commission hinged 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.
This Law signed by the state governor, Peter Mbah, 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This was followed by the passage of the Electricity Act 2023, that repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, and empowers states to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.
Chijioke Okonkwo, EERC chairman, explained further 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 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 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,” the chairman said.
He explained further that, “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 noted, however, 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 throughout the country, as tariffs would most likely rise beyond these new rates.
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 9am of the next day. Where it fails to deliver on the committed level of service on Band A feeder for two consecutive days, it shall report this to the Commission within 24 hours,” the commission said.
