The Enugu State Electricity Regulatory Commission (EERC) has announced a reduction in electricity tariff for Band A customers in the state from N209 to N160 per kilowatt-hour (kWh). The new rate, which takes effect from August 1, 2025, was disclosed in a tariff order issued to MainPower Electricity Distribution Limited, the utility company that replaced the Enugu Electricity Distribution Company (EEDC).
The decision was contained in the commission’s Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025.” The EERC stated that the revised tariff is cost-reflective and takes into account the electricity generation subsidy provided by the Federal Government. The adjustment follows the provisions of the Enugu State Electricity Law 2023, which empowers the state to regulate its electricity market.
Governor Peter Mbah signed the law in September 2023, following the 2023 Constitutional Amendment that granted states the authority to oversee electricity generation, transmission, and distribution within their jurisdictions. The move aligns with the Electricity Act 2023, which replaced the Electric Power Sector Reform Act of 2005 and allowed states to manage their power sectors independently.
Explaining the rationale behind the tariff reduction, EERC Chairman Chijioke Okonkwo said the commission reviewed MainPower’s operational costs using its Tariff Methodology Regulations 2024. The analysis revealed an average cost of N94 per kWh, significantly lower due to the Federal Government’s subsidy on generation costs.
“Band A customers will now pay N160 per kWh, while tariffs for Bands B, C, D, and E remain unchanged,” Okonkwo said. He noted that the new rate would help MainPower manage price shocks while ensuring stability. However, he warned that the tariff could increase if the Federal Government removes the existing subsidy on power generation.
To ensure compliance, the EERC has mandated MainPower to publish daily electricity supply reports on its website, showing a seven-day average for each Band A feeder. If a feeder fails to meet the required service level for seven consecutive days, it will be downgraded automatically.
This development comes after the Nigerian Electricity Regulatory Commission (NERC) announced the removal of electricity subsidies for Band A customers nationwide in April 2024. Enugu’s decision to lower the tariff contrasts with the federal policy, offering relief to consumers in the state.
Residents and businesses in Enugu are expected to benefit from the reduced rates, provided the Federal Government maintains the current subsidy regime. The EERC has assured customers of strict monitoring to ensure service quality aligns with the new tariff structure.
