EERC Cuts Band A Tariff from ₦209 to ₦160/kWh Under New Cost-Reflective Framework

The Enugu State Electricity Regulatory Commission (EERC) has approved a downward tariff review for Band A customers of MainPower Electricity Distribution Limited.

The tariff was reviewed downward from ₦209/kWh to ₦160/kWh.

The new pricing will take effect from August 1, 2025, under a cost-reflective framework designed to align power distribution tariffs with actual market realities and federal generation subsidies.

The Commission disclosed the adjustment in a formal order issued on Sunday following a regulatory review of MainPower’s license and tariff application.

The move marks the implementation of the Enugu State Electricity Law 2023, which empowers the state to independently regulate its electricity market pursuant to the 2023 Constitutional Amendment and the Electricity Act 2023.

EERC Chairman, Chijioke Okonkwo stated that the new Band A tariff was derived from the Commission’s Distribution Tariff Model and 2024 Tariff Methodology Regulations.

According to him, “The actual average cost of supply was computed at ₦94/kWh, factoring in the Federal Government’s subsidy on generation, which covers ₦67 of the total ₦112/kWh cost.”

Under the revised structure, only Band A customers will be subject to the ₦160/kWh rate, while tariffs for Bands B to E remain frozen.

Okonkwo noted that although Band A no longer receives federal subsidies, the reduction was necessary to ease the impact of ongoing market reforms.

“The ₦160/kWh rate balances cost recovery for MainPower with affordability for customers. If the current generation subsidy is withdrawn, further adjustments may be required.”

The Commission further directed MainPower to maintain daily transparency by publishing a rolling seven-day average of actual supply hours for each Band A feeder on its website by 9 a.m. every morning. Feeder downgrade mechanisms were also introduced: any Band A feeder that fails to meet its service commitment for seven consecutive days will be automatically reclassified.

EERC said these regulatory instruments are part of a broader monitoring and compliance framework to ensure service delivery matches tariff rates.

The Commission added that it will not approve tariffs that do not reflect actual supply or that place unjustified burdens on consumers.

MainPower is the licensed operator that took over from the Enugu Electricity Distribution Company following the unbundling of the electricity sector and decentralization of regulatory authority.

The firm is now solely responsible for power supply within Enugu State’s electricity market.

The tariff cut comes amid broader national debates around electricity affordability and subsidy reforms. With the federal government officially removing subsidies for Band A customers in April 2024, subnational regulators like EERC are now expected to design localized pricing models tailored to economic conditions and supply realities within their jurisdictions.

The Commission reiterated its commitment to enforcing transparent, data-driven regulation that prioritizes consumer protection, investment sustainability and service accountability.