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Enugu Electricity Regulator Slashes Band A Tariff to ₦160/kWh

The Enugu State Electricity Regulatory Commission (EERC) has announced a reduction in the electricity tariff for Band A customers under MainPower Electricity Distribution Limited, lowering the rate from ₦209 to ₦160 per kilowatt-hour. The new tariff will take effect from August 1, 2025. The directive was contained in the Commission’s newly issued Order No. EERC/2025/003 titled “Tariff Order for MainPower Electricity Distribution Limited 2025.” The Commission said the downward review was informed by the federal government’s ongoing electricity subsidy, which covers a significant portion of power generation costs. According to the Chairman of EERC, Chijioke Okonkwo, the average cost-reflective tariff for all customer categories under MainPower was determined to be ₦94/kWh. However, Band A customers, who receive at least 20 hours of electricity daily, were assigned a higher tariff of ₦160/kWh to ensure service sustainability while avoiding a sudden shock in electricity pricing. He explained that the actual cost of generating electricity is ₦112 per kWh, but the federal government currently provides a ₦45 subsidy per unit, which has made the reduced tariff possible. He noted that if the federal subsidy is removed, the Band A tariff may rise again to reflect actual costs, which could exceed ₦200 per unit. The Commission also directed MainPower to comply with strict service-level monitoring. It mandated the company to publish the daily rolling seven-day average of supply hours per Band A feeder by 9 a.m. the following day. If any Band A feeder fails to meet the minimum daily supply hours for two consecutive days, it must be reported within 24 hours. In the event of a consistent shortfall for seven straight days, the affected feeder will be automatically downgraded to a lower band with a corresponding tariff adjustment. This move by the EERC is part of a broader effort to enforce service-based tariffs and enhance accountability in electricity distribution under the framework of the 2023 Electricity Act, which empowers states to independently regulate their electricity markets. Enugu is among the first states to exercise this authority, establishing a precedent for state-level regulation aimed at protecting consumers while promoting efficient service delivery.

 

khadijat opeyemi

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