The Enugu State Electricity Regulatory Commission (EERC) has approved a significant reduction in the electricity tariff for Band A customers of MainPower Electricity Distribution Limited, bringing the rate down from N209 to N160 per kilowatt-hour (kWh).
MainPower Electricity Distribution Limited is the licensed successor to the Enugu Electricity Distribution Company (EEDC), now operating within the newly established Enugu State electricity market.
The tariff reduction, which is set to take effect from August 1, 2025, was announced through the Commission’s latest directive, Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” was issued over the weekend.
According to EERC Chairman Chijioke Okonkwo, the revised Band A rate is a “cost-reflective” tariff that considers the federal government’s ongoing subsidy on electricity generation, which helps cushion the cost burden on consumers.
“We reviewed their entire costs using our Tariff Methodology Regulations 2024 and the Distribution Tariff Model to arrive at an average cost-reflective tariff of N94/kWh. The actual generation cost is N112, but with a federal subsidy of N67, the effective charge is N45. That financial support makes the average tariff N94 possible for Enugu’s subnational electricity market,” Okonkwo explained.
The Commission determined that while Bands B through E will maintain current frozen tariffs, the reduced Band A tariff of N160/kWh will allow MainPower to gradually manage the transition from the former rates, balancing affordability for consumers with financial sustainability.
However, Okonkwo cautioned that this Band A rate may not be sustainable if the federal government withdraws the existing generation subsidy. In such a scenario, tariffs could rise beyond current levels.
“But until then, it is only fair that Band A customers in Enugu enjoy the lower tariff from August 1,” he added.
To ensure accountability and service reliability, the EERC has also introduced strict compliance monitoring measures for MainPower. The utility firm must:
- Publish a rolling seven-day average of daily power supply hours for each Band A feeder on its website by 9 am daily.
- Report to the Commission within 24 hours if it fails to meet the committed service level on any Band A feeder for two consecutive days.
- Automatically downgrade any Band A feeder that fails to meet the committed service level for seven consecutive days to the actual recorded supply level.
EERC reaffirmed its commitment to ensuring that consumers get value for their money, pledging continued collaboration with developers, investors, and other stakeholders to enhance electricity access and reliability in Enugu State.
“This is a win for the electricity sector in Enugu. We are committed to ensuring MainPower delivers on its service obligations without placing an undue financial burden on consumers,” the Commission stated.
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