The Enugu State Electricity Regulatory Commission (EERC) has approved a new tariff structure for MainPower Electricity Distribution Limited, which has taken over electricity distribution in Enugu State from the Enugu Electricity Distribution Company (EEDC). The revised tariff reduces the cost of electricity for Band A customers from ₦209/kWh to ₦160/kWh, effective August 1, 2025.
This directive is detailed in the Commission’s Order No. EERC/2025/003 titled “Tariff Order for MainPower Electricity Distribution Limited 2025”, released over the weekend. The EERC clarified that the adjustment is cost-reflective and aligns with the federal government’s subsidy on power generation, ensuring consumers benefit from lower tariffs.
The Commission’s decision is grounded in the Enugu State Electricity Law of 2023, which grants it the authority to regulate electricity generation, transmission, and distribution within the state. This law, signed by Governor Peter Mbah, stems from the 2023 Constitutional Amendment that granted states legislative powers over electricity. The subsequent Electricity Act 2023, which repealed the Electric Power Sector Reform Act of 2005, further empowered states to run and regulate independent electricity markets and separated distribution from supply operations.
EERC Chairman, Chijioke Okonkwo, explained that the new tariff was based on MainPower’s tariff and licence applications as the new state operator.
“We assessed their costs using our 2024 Tariff Methodology Regulations and the Distribution Tariff Model. We determined an average cost-reflective tariff of ₦94/kWh,” Okonkwo said.
He attributed the lower cost to federal government subsidies, noting that while actual generation costs ₦112/kWh, the government pays ₦67 of that, leaving consumers with a ₦45 burden. Thus, the ₦94/kWh average includes this subsidised component.
Under the new tariff structure, only Band A customers will pay ₦160/kWh, while tariffs for Bands B, C, D, and E remain frozen. Okonkwo said the ₦160 rate helps prevent tariff shock for MainPower, and if subsidies are withdrawn, the buffer could help stabilise future rates. He assured that tariffs would remain cost-reflective without requiring subnational subsidies.
However, Okonkwo warned that maintaining the ₦160/kWh Band A rate may become unsustainable if the federal subsidy is removed. Until then, Band A customers in Enugu will benefit from the reduced rate starting August 1, 2025.
To ensure accountability, the Commission has implemented strict monitoring measures for MainPower. The company must publish daily, by 9 a.m., a rolling seven-day average of power supply on each Band A feeder. If it fails to meet service levels for two consecutive days, it must report to the Commission within 24 hours. A failure to deliver for seven straight days will automatically downgrade the affected feeder’s tariff band.
The EERC reaffirmed its commitment to collaborate with developers, investors, customers, and other stakeholders to enhance electricity access and service quality across Enugu State, describing the tariff revision as a milestone achievement for local power sector reform.
