In a landmark regulatory intervention, the Enugu State Electricity Regulatory Commission (EERC) has announced a significant reduction in electricity tariffs, slashing the cost of Band A power supply from N209 to N160 per kilowatt-hour (kWh), while freezing tariffs for Bands B, C, D, and E. The new tariff takes effect from August 1, 2025.
The announcement was made through Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” which was issued over the weekend.
MainPower Electricity Distribution Limited, the utility company that succeeded the Enugu Electricity Distribution Company (EEDC), will now operate under the new rate regime. The move comes after a detailed tariff and license application review by EERC, in accordance with its 2024 Tariff Methodology Regulations and supported by the Distribution Tariff Model.
Speaking on the development, EERC Chairman Chijioke Okonkwo explained that the new Band A tariff reflects a cost-justified model and takes into account federal subsidies on electricity generation.
“We arrived at an average cost-reflective tariff of N94/kWh. Band A customers will pay N160, which is still significantly below the previously approved N209/kWh,” Okonkwo stated.
He further explained that the federal government currently subsidizes electricity generation costs — paying only N45 out of an actual N112/kWh — thereby cushioning the pricing burden on end users.
“This reduction benefits consumers while helping MainPower manage tariff stability over time, especially if the subsidy is withdrawn in the future. Crucially, this model ensures no additional subsidy is required from the Enugu State Government,” he said.
The tariff adjustment is grounded in the Enugu State Electricity Law 2023, signed into law by Governor Dr. Peter Mbah, following the 2023 constitutional amendment which decentralised electricity regulation. That law gave EERC exclusive jurisdiction over electricity regulation within Enugu State, in line with the federal Electricity Act 2023, which repealed the previous Electric Power Sector Reform Act of 2005.
The Commission has also mandated robust transparency and accountability mechanisms to ensure service quality, particularly for Band A customers.
“MainPower must publish a rolling seven-day average of daily power supply hours on each Band A feeder. Failure to meet service standards for two consecutive days must be reported within 24 hours,” EERC warned.
“Persistent failure—seven consecutive days—will result in the automatic downgrading of that feeder’s tariff band.”
EERC reaffirmed its commitment to consumer protection and sustainable power sector development, vowing to work with investors, developers, and the general public to build a reliable and cost-effective electricity market.
This bold regulatory move positions Enugu as a national trailblazer in state-level power sector reform and consumer-focused electricity pricing.
(hoohaa)
