The Digest:
The Enugu State Electricity Regulatory Commission (EERC) has approved a new tariff for MainPower Electricity Distribution Limited, reducing the Band A electricity rate from N209 per kilowatt-hour (kWh) to N160/kWh, effective August 1, 2025.
Key Points
- The new tariff, as per EERC’s order, is cost-reflective and accounts for the federal government’s subsidy on power generation.
- The decision follows the Enugu State Electricity Law 2023, which allows the state to regulate its electricity generation, transmission, and distribution.
- The tariff cut comes after a comprehensive review of MainPower’s cost and license applications, ensuring that the price reflects the subsidy on power generation.
- EERC has outlined strict monitoring mechanisms, including a seven-day average supply report for MainPower to ensure service commitments are met.
- If MainPower fails to meet the service level for seven consecutive days, it will be downgraded automatically.
- While the tariff is set to remain cost-reflective, it may be unsustainable if the federal government removes its subsidy on electricity generation.
- Band A customers will benefit from the reduced tariff until further changes occur.
The EERC has reduced Band A electricity tariffs from N209 to N160/kWh as part of efforts to provide cost-reflective and subsidized electricity. However, future challenges may arise if federal subsidies are removed, causing potential tariff hikes.
Sources: The Cable
