The Enugu State Electricity Regulatory Commission (EERC) has announced a downward review of electricity tariff for Band A customers under MainPower Electricity Distribution Limited, reducing the rate from N209 per kilowatt-hour (kWh) to N160/kWh. The new tariff takes effect from August 1, 2025.
This development was disclosed in Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025”, issued by the Commission over the weekend.
EERC said the reviewed tariff is cost-reflective and aligns with ongoing federal government subsidies on power generation. The decision is grounded in the Enugu State Electricity Law 2023, which grants the Commission the authority to regulate electricity generation, transmission, and distribution within the state.
The state law, signed by Governor Peter Mbah in September 2023, follows the 2023 Constitutional Amendment that devolved power sector regulation to subnational governments. This was reinforced by the Electricity Act 2023, which repealed the Electric Power Sector Reform Act of 2005 and empowered states to establish independent electricity markets and regulators.
Explaining the rationale behind the tariff reduction, EERC Chairman, Chijioke Okonkwo, said the Commission reviewed MainPower’s tariff and licence applications using its 2024 Tariff Methodology Regulations and Distribution Tariff Model, arriving at an average cost-reflective tariff of N94.
“This lower price reflects current federal subsidies,” Okonkwo said. “The Federal Government subsidises about ₦45 of the actual ₦112 generation cost in Enugu State. If MainPower procures electricity outside the NBET framework without subsidy, an automatic tariff adjustment will apply.”
Under the new structure, only Band A customers—those expected to receive a minimum of 20 hours of electricity supply daily—will pay the adjusted N160/kWh. Tariffs for Bands B, C, D, and E will remain unchanged for now.
“Setting Band A at N160 helps MainPower manage rate shocks while maintaining a cost-reflective structure. If federal subsidies are eventually withdrawn, the utility will have a pricing buffer to maintain service stability without needing state funding,” Okonkwo noted.
He cautioned, however, that the N160/kWh tariff might be unsustainable if federal generation subsidies are removed, as prices could rise significantly. Until then, he said, Band A customers in Enugu should benefit from the reduced tariff.
To ensure service quality, EERC has introduced new monitoring and compliance measures. MainPower is now required to:
- Publish daily, by 9:00 a.m., a rolling seven-day average of power supply hours for each Band A feeder on its website.
- Notify the Commission within 24 hours if it fails to meet the committed supply level on any Band A feeder for two consecutive days.
- Automatically downgrade any Band A feeder to a lower band if service falls short for seven consecutive days.
“The Commission is fully committed to enforcing service standards and working with stakeholders to improve electricity access and reliability across Enugu State,” EERC stated.
