A state in Nigeria’s South East region, Enugu, has taken an unprecedented step by slashing electricity tariffs for its residents, marking a shift away from the centrally controlled pricing system.
In its Tariff Order for MainPower Electricity Distribution Limited 2025, the Enugu State Electricity Regulatory Commission (EERC) said it was reducing the electricity cost for Band A customers from N209/ kWh (per kiloWatt) to N160 kWh.
The new tariff order is to take effect from August 1, 2025.
MainPower Electricity Distribution Limited is the utility that succeeded Enugu Electricity Distribution Company (EEDC), for electricity distribution in the state following the transfer of regulatory authority by the Nigerian Electricity Regulatory Commission (NERC) to the EERC in April 2024.
Speaking on the development, EERC Chairman, Chijioke Okonkwo, said 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 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. That was how we came about the average tariff of N94 as cost reflective tariff at our level as a subnational electricity market.
“The actual PPA cost of any power purchase made by Mainpower outside the one subsidized by Federal Government, through the Nigerian Bulk Electricity Trader (NBET) will trigger automatic tariff adjustment to accommodate the PPA price because it will not be subsidized by the Federal Government, ” Okonkwo explained.
Under the order, customers in the Bands B–E category will not have to pay any electricity tariff as it remains frozen.
Institutional safeguards to protect consumers
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 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.”
