The Enugu State Electricity Regulatory Commission (EERC) has announced a significant reduction in electricity tariff for Band A customers, slashing the rate from ₦209/kWh to ₦160/kWh. The new tariff, which takes effect from August 1, 2025, was issued to MainPower Electricity Distribution Limited, the utility now responsible for power distribution in Enugu State following its transition from the Enugu Electricity Distribution Company (EEDC).
The adjustment was contained in the Commission’s latest directive, Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025.” The EERC stated that the reduction reflects current economic realities, especially the federal government’s subsidy on electricity generation, and was designed to protect consumers from rate shocks while ensuring cost-reflective pricing.
EERC Chairman Chijioke Okonkwo explained that the revised tariff was based on a comprehensive review of MainPower’s costs using the 2024 Tariff Methodology Regulations and a detailed Distribution Tariff Model. According to him, the cost of generating power for Enugu State is currently ₦112 per kWh, but with a federal subsidy of ₦45, the effective cost drops to ₦67, making the ₦160 Band A tariff more sustainable—for now.
“We determined an average cost-reflective tariff of ₦94 for Enugu, thanks to federal generation subsidies,” Okonkwo said. “However, Band A will be charged ₦160 to help MainPower absorb market volatility and stabilize supply over time.”
Other Bands Frozen, Tariff Could Rise Without Subsidy
While Band A consumers will see a reduced rate, tariffs for Bands B, C, D, and E will remain unchanged for now. The Commission warned, however, that these rates could increase if the federal government removes the subsidy.
“If federal support is withdrawn, tariffs may need to be reviewed upwards. But for now, Band A customers in Enugu will enjoy the reduced ₦160 rate,” Okonkwo added.
Legal Backing & Market Reform
The tariff reduction follows reforms introduced under the Enugu State Electricity Law 2023, enacted after the 2023 Constitutional Amendment, which gives states the authority to regulate electricity markets within their jurisdictions. This legal framework was bolstered by the Electricity Act 2023, which repealed the 2005 Electric Power Sector Reform Act and introduced sweeping changes, including the decentralization of power distribution and supply responsibilities.
MainPower’s operations are now governed by these new regulatory frameworks, with the EERC empowered to monitor tariffs, service delivery, and compliance within the state.
Monitoring & Accountability Measures in Place
To ensure consumers receive value for money, the EERC has mandated MainPower to maintain a rolling seven-day supply report for each Band A feeder, published daily on its website by 9:00 a.m. If any Band A feeder fails to meet service commitments for two consecutive days, the utility must notify the Commission within 24 hours. A feeder that fails for seven straight days will be automatically downgraded.
“Our goal is to ensure consumers are not paying premium rates for unreliable supply,” Okonkwo stated. “The Commission is committed to holding operators accountable while collaborating with stakeholders to improve electricity access and service quality.”
Looking Ahead
The EERC reaffirmed its commitment to balancing investor confidence, utility viability, and consumer protection in the evolving electricity landscape. By prioritizing cost transparency and service standards, the Commission said it aims to make Enugu a model subnational electricity market in Nigeria.
“This tariff revision is a win for Ndi Enugu. We are building a more inclusive, responsive, and competitive power sector that puts consumers first,” the Commission concluded.
