The Enugu State Electricity Regulatory Commission (EERC) has insisted that there is no justification to maintain the electricity tariff for Band A customers at ₦209 per kilowatt-hour (kWh) in the state, clarifying that its new order reducing the rate to ₦160/kWh does not tamper with the prevailing cost of power generation nationwide.
In a statement on Wednesday by its Commissioner for Electricity Market Operations, Barr. Reuben Okoye, the Commission addressed concerns raised by power sector stakeholders, including generation companies (GenCos), over its recent tariff order issued to MainPower Electricity Distribution Limited — the Enugu-based subsidiary of the Enugu Electricity Distribution Company (EEDC).
The new order, effective August 1, 2025, reduced the Band A tariff to ₦160/kWh and froze tariffs for all other bands. EERC explained that the decision was based on a thorough review of MainPower’s cost structure and data, which showed no economic rationale for maintaining the higher ₦209/kWh rate within Enugu State.
“The Commission is focused on developing a sub-national electricity market that is transparent, accountable, reliable and sustainable,” Okoye stated, adding that EERC is committed to a pricing structure that reflects the actual cost of service while ensuring fairness to consumers.
He emphasized that the Commission did not alter the cost of electricity generation or transmission as incurred from the national grid, noting that these costs were fully included in the tariff model used.
“Our Order ensures that MainPower recovers all its efficient costs and makes a reasonable return in its business of providing electricity services to citizens of Enugu State,” he said.
The Commission argued that, with more customers migrating to Band A, the overall cost of service delivery is spread across a larger base, justifying the tariff reduction. It also pointed out that the reduction was based solely on verified data and the need to protect consumers from unjustified billing.
“We are willing to entertain any evidence that shows our methodology, analysis, computation and output are wrong,” the Commission said, urging stakeholders to avoid fixating solely on the Band A reduction.
EERC further clarified that the tariff order is applicable only to Enugu State and does not affect other states or national electricity rates.
Addressing GenCos’ dissatisfaction, the Commission stated that over-recovery cannot occur in a fragmented market where cost-reflective tariffs are yet to be adopted nationwide.
“To be clear, GenCos will not get over-recovery from any sub-national company until cost-reflective tariffs are applied countrywide. Their concerns are therefore misdirected,” EERC noted.
The Commission invited GenCos willing to operate on a “willing buyer, willing seller” model to consider establishing power plants in Enugu State, pledging to approve Power Purchase Agreements (PPAs) and related tariffs under transparent regulatory terms.
“We will consider and approve your PPA and tariff for them to do their business, as the PPA cost will be a natural pass-through in the tariff,” EERC concluded.