The new tariff takes effect from August 1, 2025.

The Commission also declared a tariff freeze on Bands B, C, D, and E, meaning no changes to electricity rates for customers in those categories.

The announcement was contained in Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” issued over the weekend. MainPower Electricity Distribution Limited is the successor to the Enugu Electricity Distribution Company (EEDC) and now operates under Enugu’s state-regulated electricity market.

Backed by Law, Driven by Consumer Needs

EERC’s decision is anchored on the Enugu State Electricity Law 2023, which empowers the state to regulate electricity generation, transmission, and distribution exclusively within its borders. The law is a direct implementation of Nigeria’s 2023 Constitutional Amendment on power devolution and the Electricity Act 2023, which repealed the long-standing Electric Power Sector Reform Act of 2005.

The changes introduced by the Electricity Act include the legal separation of distribution and supply operations and grant states full regulatory authority over their electricity markets.

Why the Reduction?

Mr. Chijioke Okonkwo, EERC chairman, explained that the Commission arrived at the revised tariff after a comprehensive review of MainPower’s cost and tariff submissions, guided by the Commission’s Tariff Methodology Regulations 2024 and the Distribution Tariff Model.

“We determined a cost-reflective average tariff of ₦94/kWh, which is significantly subsidised by the Federal Government. This subsidy keeps generation tariffs at ₦45, whereas the actual cost is ₦112,” said Okonkwo.

Based on this analysis:

• Band A customers will now pay ₦160/kWh.
• Bands B, C, D, and E tariffs are frozen to shield lower-tier consumers from any rate shock.

Okonkwo clarified that the ₦160 tariff for Band A is structured to help MainPower manage cash flow without overburdening consumers. Should the Federal Government withdraw its generation subsidy in the future, tariff adjustments may be inevitable.

“But until then, it is only right that Ndi Enugu, particularly Band A customers, enjoy reduced tariffs starting August 1, 2025,” he added.

Monitoring to Protect Consumers

EERC says it has instituted robust monitoring and evaluation mechanisms to ensure MainPower delivers on its service commitments:

• Daily power supply records for each Band A feeder must be published by 9 a.m. the following day.
• Service failure on Band A feeders for two consecutive days must be reported to the Commission within 24 hours.
• Any Band A feeder underperforming for seven consecutive days will be automatically downgraded to the actual level of supply recorded.

“This isn’t just about lower tariffs; it’s about ensuring value for money and building consumer trust,” the Chairman noted.

A Win for Enugu and Nigeria’s New Electricity Era

The EERC insists that this decision is not only cost-reflective but also pro-consumer, balancing affordability with sustainability, and ensuring no state subsidy is required to maintain the revised rates.

The Commission reiterated its commitment to working with developers, investors, customers, and other stakeholders to drive access, improve service delivery, and solidify Enugu’s position as a front-runner in Nigeria’s subnational electricity regulation model.

“This is a win for everyone – consumers, industry players, and the vision of a reliable, affordable electricity supply for all citizens of Enugu State,” the statement concluded.

Effective Date: August 1, 2025
New Band A Tariff: ₦160/kWh
Bands B-E Tariff Status: Frozen

This brings to a total of 15MW, the worth of power generation licenses issued by EERC since the successful completion of the transfer of regulatory oversight from the Nigerian Electricity Regulatory Commission to the agency on October 22, 2024, a feat it was the first state to achieve.

Speaking during the issuance of the license at the EERC office in Enugu, Thursday, Chijioke Okonkwo, the chairman and CEO of the agency, said the milestone reflected the growing confidence that private sector players and investors reposed in the Enugu State electricity sector and in the enabling environment created for electricity business to thrive.

“Tempo Power swiftly took advantage of this opportunity offered by the conducive investment climate in Enugu State, engaged an off-taker and successfully completed the application process for the generation license.

“Their project is a model of proactive engagement and strategic partnership, and the successful deployment of this 5MW power plant is a collective win for all of us. We are confident that as the market grows, Tempo Power will continue to scale up its capacity.

“We acknowledge that this transformation was initiated by the visionary leadership of Governor Peter Mbah through the articulation of the Enugu State Electricity Policy 2023 and the enactment of the Enugu State Electricity Law also in 2023.

“Since we successfully completed the transfer of regulatory oversight from the national regulator (NERC) to EERC on 22nd October 2024, we have issued interim licenses, including an interim distribution license to Mainpower Electricity Distribution Limited and a 10MW generation license to Fedikore Limited.

We have successfully resolved over 60 customer complaint issues and we are equally reviewing four license applications covering generation, electricity distribution and electricity retail,” he stated.

While recognising the arduous work ahead, the EERC Chairman reiterated the Commission’s commitment to working collaboratively with stakeholders – electricity providers, policymakers, financiers, and communities – to deliver reliable, accessible, and sustainable power across the State.

He, therefore, advised other would-be investors to emulate Tempo Power by taking advantage of the abundant energy sources in the state and increasingly business-friendly environment being created by the Mbah Administration.

“Enugu State is open for energy business. We invite investors and developers to harness the wealth of natural energy resources in the State. The enabling environment fostered by the Government has made investment decisions easier and more attractive.

“Enugu State has witnessed transformative improvements that support the electricity sector development, including major upgrades in access roads and infrastructure, enhanced security of lives and property, targeted socio-economic initiatives, among others. These developments form the bedrock for electricity investment and most will serve as anchor loads to extend electricity to our underserved and unserved communities across the State.

“Today, we celebrate with Tempo Power Solutions. And soon, we will also celebrate with other licensees whose applications are undergoing review – across generation, distribution, and retailing of electricity,” Okonkwo concluded.

In his remark, Mr Collins Kalabare, the executive director of Tempo Power, commended Mbah for setting the pace in what states could do to solve Nigeria’s energy problem, and the EERC for running a professional and transparent system where investors do not need to know anybody to get things done fast.

“I must appreciate the EERC for the professional, business-minded and openness of their processes and operations. The process is seamless and you do not need to know anybody.

“EERC is indeed working according to the vision and speed of Gov Peter Mbah, who we have learnt is in a hurry to develop and make Enugu State’s economy grow and uplift the general status of residents and businesses.

“As a reputable and responsible company, we will be offering uninterrupted electricity supply, cost reflective tariff and electricity supply meant to add value to commercial and residential concerns as well as grow businesses and general economy of the state,” Kalabari said.