Victoria Ogunyemi
The Enugu State Electricity Regulatory Commission (EERC) has announced a significant reduction in the electricity tariff for Band A consumers, lowering the rate from N209 to N160 per kilowatt-hour. The new pricing structure will take effect from August 1, 2025.
The decision, outlined in the newly released Tariff Order for MainPower Electricity Distribution Limited 2025 (Order No. EERC/2025/003), was made public over the weekend. According to the Commission, the adjustment is aimed at aligning tariffs with current government subsidies on electricity generation, thereby offering relief to consumers.
“This reduction was necessary after a comprehensive review of MainPower’s tariff and licensing submissions for its new subsidiary operating in Enugu,” said EERC Chairman, Engr. Chijioke Okonkwo.
“Using our 2024 Tariff Methodology Regulations and the Distribution Tariff Model, we arrived at a cost-reflective average of N94.”
He further clarified that the relatively low average cost reflects the ongoing federal subsidy, which currently covers N67 of the actual N112 cost of electricity generation.
“This subsidy enables us to maintain a balanced tariff that supports both consumer affordability and utility sustainability,” he noted.
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Under the new tariff structure, only Band A customers will see a change in pricing, while tariffs for Bands B through E will remain frozen. Okonkwo added that the new N160 Band A rate will help cushion the impact of subsidy removal in the future and aid MainPower in stabilizing its operations without requiring additional support from the state government.
The EERC’s authority to implement this change stems from the Enugu State Electricity Law of 2023, signed by Governor Peter Mbah in September of that year. The law empowers the Commission to regulate electricity generation, transmission, and distribution within the state—an authority reinforced by the 2023 Constitutional Amendment and the subsequent enactment of the national Electricity Act 2023.
The new federal law, which replaced the Electric Power Sector Reform Act of 2005, marked a pivotal shift in Nigeria’s electricity landscape. It decentralizes power sector governance, granting states the autonomy to regulate and develop their own electricity markets.
With this tariff revision, Enugu became one of the first Nigerian states to exercise its full regulatory authority in line with the new legal framework, potentially setting a precedent for subnational electricity markets across the country.