N160/kWh: Enugu State Announces Reduced Electricity Tariff for Band A Customers

In a significant development, the Enugu State Electricity Regulatory Commission (EERC) has announced a reduction in electricity tariff for Band A customers from N209 per kilowatt-hour (kWh) to N160/kWh, effective August 1, 2025. This decision was made after a comprehensive review of MainPower Electricity Distribution Limited's tariff and license applications.

The EERC's decision is based on the Enugu State Electricity Law 2023, which empowers the Commission to regulate the activities of operators in power generation, transmission, and distribution in the State. The law was signed by Governor Peter Mbah in September 2023, following the 2023 Constitutional Amendment that granted State Legislative Authority over electricity matters within their territories.

The EERC's chairman, Chijioke Okonkwo, explained that the Commission reviewed MainPower's entire costs using the Tariff Methodology Regulations 2024 and the Distribution Tariff Model. This review resulted in an average price of N94, which translates to N160 for Band A customers. The reduction in tariff is attributed to the Federal Government's subsidy on power generation, which reduces the cost to N45 out of the actual cost of N112.

The new tariff rate of N160/kWh for Band A customers is expected to help MainPower manage rate shock and stabilize tariffs over time. Meanwhile, tariffs for Bands B, C, D, and E have been frozen. However, Okonkwo noted that the N160 Band A tariff may be difficult to sustain if the Federal Government removes the generation tariff subsidy currently being enjoyed by electricity consumers throughout the Country.

To ensure MainPower's compliance with service commitments, the EERC has put in place monitoring and evaluation systems and guidelines. MainPower is required to publish daily reports on its website showing the rolling seven-day average daily hours of supply on each Band A feeder. The company must also report to the commission within 24 hours if it fails to deliver on committed service levels for two consecutive days. Failure to meet service levels for seven consecutive days will result in the feeder being automatically downgraded to the recorded level of supply.

The reduction in electricity tariff is a welcome development for Band A customers in Enugu State. However, the sustainability of the new tariff rate depends on the Federal Government's continued subsidy on power generation. The EERC's efforts to ensure MainPower's compliance with service commitments will also play a crucial role in determining the effectiveness of the new tariff order.