EEDC Approves New Tariff For Mainpower Electricity Distribution Limited On Band A

The Enugu State Electricity Regulatory Commission (EERC) has approved a new tariff for MainPower Electricity Distribution Limited, which took over from Enugu Electricity Distribution Company (EEDC), cutting the Band A electricity rate from N209 per kilowatt-hour (kWh) to N160/kWh.

EERC issued the order, marked EERC/2025/003 and titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” over the weekend.

According to the regulator, the move was based on the Enugu State Electricity Law 2023, which authorises the commission to regulate electricity generation, transmission, and distribution exclusively within the state.

“This law, signed by Governor Peter Mbah of Enugu state in September 2023, is pursuant to the 2023 Constitutional Amendment, which firmly established the legislative authority of the states on electricity matters within their states,” the statement reads.

“This was followed by the passage of the Electricity Act 2023, that repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, and empowers states to regulate their own electricity markets.”

EERC said monitoring and evaluation systems, along with clear service guidelines, have been put in place to ensure that MainPower complies with its service commitments so that customers are not overcharged for inadequate supply.

“MainPower is obliged to publish daily on its website a rolling seven-day average daily hours of supply on each Bank A feeder no later than 9am of the next day,” the commission said.

“Where MainPower fails to deliver on the committed level of service on Band A feeder for two consecutive days, MainPower shall report this to the Commission within 24 hours.”

EERC said any Band A feeder that fails to meet its committed service level for seven consecutive days will be automatically downgraded to its actual level of supply.

The commission said it is committed to working with “industry developers, investors, customers and Stakeholders to develop and implement strategies and solutions to provide access and improve electricity services to all the citizens of the state, as this is a win for the establishment”.

Speaking on the development, Chijioke Okonkwo, EERC chairman, said the tariff cut followed a comprehensive review of MainPower’s tariff and licence applications as a newly licensed subnational operator in Enugu state.

“We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94,” he said.

“The price is low because the Federal Government has been subsidising electricity generation cost which charges only N45 out of the actual cost of N112. That was how we came about the average tariff of N94 as cost reflective tariff at our level as a subnational electricity market.

“The actual PPA cost of any power purchase made by Mainpower out side the one subsidized by Federal Government, through the Nigerian Bulk Electricity Trader (NBET) will trigger automatic tariff adjustment to accommodate the PPA price because it will not be subsidized by the Federal Government.

“Breaking this across the various tariff bands means that Band A will be paying N160 while other Bands B, C, D, and E are frozen.

“Band A, at N160 will help MainPower to manage the rate shock, and if the subsidy is removed, the savings will assist them in stabilising the tariff over a defined period of time.”

The tariff, Okonkwo said, will remain cost-reflective at all times and will not require any financial support from the state government.

The EERC chairman said the current Band A rate of N160 may become unsustainable should the federal government withdraw the existing subsidy on generation, as tariffs are likely to rise above the new benchmark.

Until then, he said it is only right that “Ndi Enugu – Band A customers” enjoy the reduced tariff from August 1.