Recall that MainPower Electricity Distribution Company Limited had last week issued a statement where it blamed the development on the drastic reduction of power being supplied it by the parent company, the Enugu Electricity Distribution Company, EEDC, following EERC’s decision to slash electricity tariff for Band A from N209 per kWh to N160 per kWh.

But EERC in a Public Notice it issued on Sunday evening, said it met with both EEDC and MainpPower, assuring that it was taking the necessary steps to restore normalcy.

The statement read,

“Sequel to the public announcement from MainPower which stated that EEDC, its parent company, directed the curtailing of power supply to Bands B to E Feeders, and the challenges in vending being experienced by the customers in Enugu State, the Enugu State Electricity Regulatory Commission (the Commission) invited MainPower Electricity Distribution Limited (MainPower) to a meeting on Thursday 7th August, 2025 to ascertain the reasons for the decision to curtail power supply in Enugu State and vending challenges being experienced by customers.

“During the meeting, MainPower explained that they (MainPower and EEDC) were having difficulties separating Enugu State from the rest of the States in the coverage area of EEDC, which challenge was termed ‘code coverage conflicts and related glitches,’ but gave assurance that the issue would be sorted out very soon.

“The Commission, however, mandated MainPower to formally communicate with the customers on vending challenges and efforts being made to resolve it.

“As regards the curtailing of power supply in Enugu, and their dissatisfaction with the Tariff Order from the Commission, thereby plunging parts of the state into darkness, the Commission reminded MainPower of the provisions of the Commission’s Business Rules, which require that they make a formal petition within thirty (30) days of the Commission’s Order if they were not satisfied with the Order, instead of resulting in curtailing of supply. The petition will enable a public hearing on the Tariff Order to which the outcome will be implemented. The Business Rules is accessible to all stakeholders on the Commission’s website.

“The Commission is consulting with relevant stakeholders at the state and federal level and will endeavour to apply appropriate regulatory approach in dealing with this issue to ensure that developers, service providers, customers and Ndi Enugu get the full benefit of the evolving subnational electricity market in the State.

“We will also ensure that MainPower recovers sufficient revenue that covers their efficient costs of doing business in Enugu State plus a fair return on capital invested, as provided in section 34 (2)(b) of the Enugu State Electricity Law 2023.“

The Commission maintained that based on MainPower’s costs; there was no justification to keep the price of electricity for Band A at N209 per kWh in the State.

EERC made the clarification following concerns raised by some sections of the power sector stakeholders, including the generation companies (GenCos), to the new tariff order that was issued by the Commission to MainPower Electricity Distribution Limited, the subsidiary of EEDC for electricity distribution in the state.

The tariff order led to the reduction of the tariff for Band A customers to N160 kWh, and the freezing of the tariffs for the other bands effective from August 1, 2025.

In a statement issued by Mr. Reuben Okoye, EERC’s commissioner for Electricity Market Operations, on Wednesday, the agency maintained that although it inherited the current tariff regime, “the Commission is focused on developing a sub-national electricity market that is transparent, accountable, reliable and sustainable and therefore will review utility costs of service to achieve its mandate to the people of Enugu State.”

EERC further clarified, “The Order is for MainPower’s operation in Enugu State. It does not affect electricity services in other states, between states and across the country.

“The cost of delivering electricity from the National Grid to MainPower via EEDC has been accommodated in full. We did not tamper with that cost at all in our tariff determination, but rather adopted it.

“Our Order ensures that MainPower recovers all its efficient costs and makes reasonable return in its business of providing electricity services to citizens of Enugu State.

“Considerations and reconsiderations of the MainPower tariff application and data still presents the same outcome that ensures full payment of invoices to all parties.”

On the justification for tariff reduction, EERC said, “Having gone through our rigorous process, EERC has no rationale or justification to keep Band A at N209 in the State.

“EERC has not removed a kobo from the generation and transmission costs of delivering power to Enugu State, but rather included the exact costs to ensure complete payment of MainPower’s portion of the Nigerian Bulk Electricity Trading (NBET), invoices. Also, MainPower’s share of EEDC’s debts arising from CBN’s interventions in the NESI were included in the tariff.

“EERC and MainPower also reviewed all the relevant data/information provided by MainPower for its tariff determination to ensure accuracy.

“We are willing to entertain any evidence that shows that our methodology, analysis, computation and output are wrong. The total focus on the reduction of Band A tariff by some commentators is rather unfair to the Commission and to electricity consumers in Enugu State.

“It is important to say that with the ongoing migration of more customers to Band A, the general cost of delivering electricity is spread across larger customer numbers, which should also result in a reduced cost of service delivery.”

Continuing, the Commission added, “The emerging issue or question is: should customers in Enugu State be over-billed for electricity services and if so, for whose benefit?

“The fact remains that GenCos will not get the over-recovery from any Subco until cost reflective tariff is adopted across board in the country. So, their present concerns are misdirected.

“We stand ready to provide clarification as well as engage concerned stakeholders so as to provide assurances regarding the Order.

“Again, for emphasis, let us be clear that this tariff Order is only applicable to Enugu State, as it was developed after considering the circumstances, information and data of MainPower in the State.

The Commission, therefore, invited GenCos that are ready to operate with effective contracts based on a willing-buyer, willing-seller commercial arrangement to consider setting up power plants in Enugu State.

“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.

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.

This development, which makes Enugu the first state to commence the development of a sub-national electricity market in both Nigeria and Africa, also saw the EERC, issue licensees to Mainpower Electricity Distribution Limited, an EEDC subsidiary set up to take over electricity operations of EEDC in Enugu State effective midnight of Wednesday and the first Independent Power Project, IPP, in Enugu State, to Fedikore Limited, to build a  power plant with a nameplate capacity of 10MW.

This followed the enactment of the Enugu State Electricity Law, 2023, and the setting up of the EERC, which saw Enugu State emerge in April this year as the first state to be handed the regulatory power over its electricity market by NERC, but with a six-month transition period, which elapsed on Tuesday, thus effectively empowered to now fully exercise the constitutional right to develop its electricity sector across the value chain of generation, transmission, distribution, or retailing services, including Mini-Grid and Off-Grid electrification solutions.

In his address, Chijioke Okonkwo, the chairman of EERC, described the event as significant “as it marks the beginning of the development of sub-national electricity markets not only in Nigeria, or West Africa, but across the African continent.

“Today completes the six months transition for the transfer of regulatory authority from the national regulator, NERC, to the EERC, as stipulated in Section 230 of the Electricity Act 2023, and the consequential Order of NERC dated 22nd April 2024.

“Today, we now take on the monumental responsibility of regulating and guiding the electricity sector in Enugu State. This assumption of regulatory oversight is not just about the transfer of authority, but represents a shared vision for a more efficient, responsive, and innovative electricity market.

“NERC has laid a strong foundation, and we are confident that EERC will build on that legacy to bring about positive changes for the people of Enugu State and beyond, in line with Enugu’s realities.

“Our mission is clear: to ensure that Enugu has access to reliable, cost effective, and sustainable electricity while promoting fairness and innovation in the sector.

“We are here to enhance the quality of life for all residents, businesses, and stakeholders by creating an efficient regulatory environment that fosters growth and transparency,” Okonkwo stated.

The Chairman commended the Governor Peter Mbah Administration for zero political interference in the affairs of the Commission.

“I must say that we have enjoyed a tremendous level of independence from the state government activities and our own role. We have been established and supported to take off. However, we have also been given the authority and independence to develop the regulations and policies that we have put in place, not minding how they impact on the state government,” he concluded.

Speaking, Kester Enwereonu, a board member of Mainpower Electricity Distribution Ltd, assured the people of the state a better electricity experience in all ramifications.

“We are not just identifying with EERC as the pacesetter, Mainpower will also want to be the pacesetter. We are assuring you that in the coming weeks, months, and years, and with the regulatory structure that are now tailored to the needs and purposes of the state, we are going to have an improved service to the people of Enugu State,” he said.

On his part, Dr. Chukwueloka Umeh, the founder and MD/CEO of Fedikore Ltd, described what is happening in Enugu as revolutionary, expressing Fedikore’s joy to partner with EERC.

“The EERC has done a fantastic job in starting this revolution that is about to happen and we are pleased to be a part of it. Fedikore set up last year as the first IPP in Enugu State. We built 4mw plant at 9th Mile to supply power to the Enugu State Water Corporation here in Enugu. So, we are very committed to working with the state, especially given the leadership provided by both the government and the EERC so far. We believe that with the support of EERC, the state and with the partnership with Mainpower, we can do amazing things here to start the industrial revolution that we are talking about for many years. It is possible,” Umeh stated.

The government said it was, however, eager to get the inputs of industry stakeholders into the state’s draft electricity regulatory framework to make the state’s electricity market viable.

This was even as developers, operators, investors, financiers, consumers, among other stakeholders commended what they described as the transparency and proactiveness of the state in its effort to build an electricity market where everyone’s interest is protected.

The state government and industry players spoke at a stakeholders engagement and consultation organised by the Enugu State Electricity Regulatory Commission, EERC, to review it’s draft regulatory instruments in the state capital on Tuesday.

Declaring the event open, Governor Peter Mbah, who was represented by Prof Chidiebere Onyia, the secretary to the State Government, said the campaign promise to resuscitate pipe-borne water, improve security, education and healthcare delivery services, revamp and expand road networks, create the enabling environment for business development, job creation and economic growth would not be possible without a drastic improvement in electricity services.

“Therefore, we are opening up the entire value chain of the electricity market in Enugu State for all market participants to play, from supply to generation, transmission to distribution, electricity retailing through off-grid to mini-grid solutions and from metering to energy efficiency applications,” he said.

He assured the industry players of the continued independence of EERC to operate without political or administrative interference.

Speaking, Chijioke Okonkwo, the chairman of EERC, who rued the present power deficits in the state, noted that the Commission needed to carry everyone along from the outset in order to build investor confidence required to turn things around.

“We have given ourselves some projected targets that within the next two years (2026), Enugu State should be consuming at least 300 megawatts and by 2030 we would have hit at least 700 megawatts.

“Right now, we are getting approximately 70 megawatts from the national grid. And this is not sufficient for us to say that we want to put ourselves in the position to industrialize. We want to change that narrative.

“However, industry players and operators want a place where they can carry out commercially viable businesses. They are here to make money, but they are also expected to provide services that are reliable and sustainable and also undertake these service for the long term and not the short term.

“So, this engagement will give them an opportunity to make inputs and let us agree on what these regulations should speak to in order to support their investment initiatives before the finalisation, adoption, and implementation of the regulatory framework,” Okonkwo said.

In his contribution, the Managing Director of Siemens Energy Nigeria, Seun Suleiman, commended the transparency of the state government through its regulatory agency.

“I see a lot of transparency here today. Each Commissioner is breaking down all the discussions in terms of the regulation and how you will get the permit. We are very happy because we also want to support a lot of these captive power investors with our ranges of gas turbines, which we have done in so many places,” Suleiman enthused.

On her part, Nkiru Chime, the acting managing director of the Infrastructure Bank, said,

“Enugu State is being very proactive in setting out how the electricity market will play. But funding is needed to drive the investment, and that is why we are here to provide an avenue to enable all the participants or market developers to attract the right kind of funding to develop the market. We believe that once the projects are structured correctly, once the projects are viable, you can attract an unlimited source of funding.”