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