The Enugu Electricity Regulatory Commission (EERC) has announced a significant reduction in electricity tariffs for Band A customers, cutting the rate from N209 per kilowatt-hour (kWh) to N160/kWh, effective August 1, 2025. The decision, detailed in the EERC’s Tariff Order No. EERC/2025/003, marks a pivotal adjustment in the state’s electricity pricing structure, driven by a federal government subsidy and a comprehensive review of operational costs. This move is poised to ease the financial burden on consumers in the Band A category, which includes those guaranteed a minimum of 20 hours of daily electricity supply.
The EERC’s latest tariff order, issued for MainPower Electricity Distribution Limited, the sole electricity distribution company operating under its jurisdiction, reflects a meticulous cost-reflective analysis. The commission utilized its Tariff Methodology Regulations 2024 and Distribution Tariff Model to determine the new rates. A key factor in the tariff reduction is a federal government subsidy that has lowered the generation cost from N112/kWh to N45/kWh. This subsidy has enabled the EERC to set an average tariff of N94/kWh across all customer bands, with Band A specifically capped at N160/kWh to mitigate the impact of rate shock on consumers. The tariffs for Bands B, C, D, and E, which cater to customers with progressively fewer hours of guaranteed supply, remain unchanged under the new order.
MainPower Electricity Distribution Limited, responsible for electricity distribution in Enugu State, has been directed to adhere strictly to the new tariff structure. The EERC has mandated the company to publish daily seven-day average supply hours for Band A feeders to ensure transparency and accountability. Additionally, MainPower must report any failure to meet the committed service levels for two consecutive days within 24 hours, reinforcing the commission’s commitment to enforcing service standards. The EERC has also cautioned that the reduced Band A tariff of N160/kWh is contingent on the continuation of the federal subsidy, warning that the rate could increase if the subsidy is withdrawn.
This tariff reduction comes at a time when electricity costs have been a significant concern for households and businesses across Nigeria. The EERC’s decision to lower the Band A tariff is expected to provide relief to consumers in this category, particularly those in urban and commercial areas who rely on consistent power supply for their daily operations. The commission’s emphasis on maintaining unchanged tariffs for other bands ensures stability for customers with lower service guarantees, balancing affordability with the need to sustain the distribution company’s operations.
The EERC’s proactive approach to tariff regulation underscores its role in overseeing MainPower’s activities as an unbundled entity under the Enugu State Electricity Market. The commission’s adoption of a cost-reflective tariff model, combined with the federal subsidy, demonstrates a strategic effort to align electricity pricing with economic realities while prioritizing consumer interests. As the new tariff takes effect, all eyes will be on MainPower to deliver on its service commitments and on the EERC to ensure compliance through its rigorous monitoring mechanisms.
Source: TVC News
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