Electricity companies across Nigeria are worried as more people have started refusing to pay their light bills.
This came after the Enugu State Electricity Regulatory Commission reduced the price of electricity for Band A users from N209 per kilowatt-hour to N160.
The electricity companies, also known as Discos, said this price slash has made customers in other parts of the country demand the same treatment. Some customers are now refusing to pay at all.
“Since the release of the tariff order by EERC for Enugu State residents, the electricity distribution companies in other states have come under intense pressure and scrutiny also to reduce tariffs, while some customers have taken a position that they will no longer pay their electricity bills until tariffs are reduced,” said Sunday Oduntan, CEO of the Association of Nigerian Electricity Distributors.
He added that even though people want cheaper power, the current price of electricity is based on the country’s economic situation.
“It is not our intention to make life difficult for our loyal customers, and we have been aligning with the Federal Government to ensure the provision of a stable power supply,” Oduntan explained.
He said it’s their wish that tariffs will go down in the future, but that can only happen when the country’s economy improves.
The Discos also accused the Enugu State commission of acting without properly informing the Nigerian Electricity Regulatory Commission or other market operators. They warned that such actions confuse customers and create problems in the power sector.
“The tariff reduction by the Enugu State Electricity Regulatory Commission, without adequate coordination with NERC and other participants, raises significant concerns for the stability and liquidity of the power sector,” Oduntan stated.
He also said the tariff reduction in Enugu is based on the Federal Government’s subsidy policy, but if the subsidy is not paid on time, it will damage the sector.
“Subsidies must be transparently structured and promptly funded. Otherwise, they create cashflow disruptions and undermine market confidence,” he added.
Oduntan said the Minister of Power, Bayo Adelabu, had earlier warned that any state that wants to lower electricity prices must be ready to cover the cost difference.
He also said electricity subsidy payments are already delayed, and this has left gas suppliers and power generation companies with unpaid bills of nearly N5 trillion.
“While the goal of making electricity more affordable is shared by all, it must be pursued in a manner that preserves the financial health of the market,” Oduntan commented.
He called for better coordination between the Federal Ministry of Power, NERC, and state electricity regulators, saying most states are not financially strong enough to take on more expenses.
Meanwhile, the Enugu commission explained that its new tariff decision did not change the cost of power generation in Nigeria. It said the price cut only applies to MainPower’s operations in Enugu and not other parts of the country.
In a statement, the EERC’s Commissioner for Electricity Market Operations, Reuben Okoye, said, “The Order is for MainPower’s operation in Enugu State. It does not affect electricity services in other states, between states and across the country.”
He added, “We did not tamper with that cost at all in our tariff determination, but rather adopted it.”
