The Enugu State Electricity Regulatory Commission (EERC) has approved a new electricity tariff structure for MainPower Electricity Distribution Limited, significantly reducing the Band A rate from ₦209 per kilowatt-hour (kWh) to ₦160/kWh, effective August 1.
This adjustment marks the first major regulatory action since MainPower took over distribution operations from the Enugu Electricity Distribution Company (EEDC), under Enugu’s new decentralized power framework.
In a statement released on Sunday, the EERC said the new pricing reflects a cost-reflective tariff that accounts for federal subsidies on power generation, ensuring electricity remains affordable for consumers while allowing operators to recover justified costs.
New Legal Framework Driving Local Control
The tariff reduction follows the implementation of the Enugu State Electricity Law 2023, which grants the state exclusive authority over electricity regulation within its borders. This law, signed by Governor Peter Mbah, aligns with the 2023 constitutional amendment that decentralizes electricity governance across Nigeria.
In parallel, the Electricity Act 2023 which repealed the Electric Power Sector Reform Act of 2005 also introduced sweeping reforms, including the unbundling of distribution and supply functions, and empowering states to oversee their own electricity markets.
Monitoring Systems to Guard Against Service Failures
The EERC emphasized that regulatory oversight mechanisms have been put in place to ensure MainPower’s compliance with the new tariff and service obligations. Among these is a requirement for the company to publish daily power supply data for each Band A feeder by 9:00 a.m. the next day.
“MainPower is required to report any failure to meet Band A service levels for two consecutive days within 24 hours,” the EERC said. Any feeder that underdelivers for seven straight days will be automatically downgraded to reflect its actual performance.
The commission added that its priority is to collaborate with stakeholders from investors to consumers to develop solutions that expand energy access and improve service delivery across the state.
Tariff Backed by Federal Subsidy, Subject to Change
EERC Chairman Chijioke Okonkwo explained that the new Band A rate was derived after an extensive review of MainPower’s tariff and license applications, using the Commission’s 2024 Tariff Methodology Regulations.
“We calculated a cost-reflective average tariff of ₦94/kWh, based on the fact that the federal government currently covers a portion of generation costs ₦45 out of the actual ₦112/kWh,” Okonkwo stated.
For Band A consumers, the adjusted rate of ₦160 allows MainPower to manage tariff shock while remaining sustainable under current subsidy conditions. Rates for Bands B through E will remain unchanged for now.
However, the chairman noted that if MainPower secures power through bilateral deals outside the federally subsidized market such as through private power purchase agreements (PPAs) tariff levels will adjust automatically to reflect those unsubsidized costs.
Future Tariffs Dependent on Subsidy Continuation
Okonkwo stressed that while the new Band A rate is stable for now, it may not remain so if the federal government withdraws its subsidy on generation. In such a case, electricity prices would likely climb above the current ₦160 benchmark.
“For now, this reduction allows Band A consumers in Enugu Ndi Enugu to enjoy a lower electricity tariff starting August 1. But this is contingent on the federal subsidy staying in place,” he said.
The commission reaffirmed that no state funds will be required to maintain the cost-reflective tariff, which is designed to be financially sustainable under the new regulatory environment.
