EERC slashes band A electricity tariff to N160 per unit

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The Enugu State Electricity Regulatory Commission has announced a new electricity tariff for Band A customers in the state, reducing the cost from N209 per kilowatt-hour to N160. The new rate will take effect from August 1, 2025.

The commission said this review followed the takeover of the state’s electricity market by MainPower Electricity Distribution Limited after the Nigerian Electricity Regulatory Commission granted Enugu State the right to manage its power supply.

In a statement on Sunday, the commission explained that the decision was guided by the Enugu State Electricity Law 2023, which allows the state to control its power generation, transmission, and distribution.

The EERC chairman, Chijioke Okonkwo, said, “We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94.”

He explained that the Federal Government’s subsidy on power generation had helped to keep the cost lower. “The price is low because the Federal Government has been subsidising electricity generation cost, which charges only N45 out of the actual cost of N112,” he added.

Okonkwo said the N160 tariff for Band A would help MainPower manage rate shocks, noting that other Bands B, C, D, and E will remain unchanged.

He warned that the N160 rate might not be sustainable if the Federal Government removes the current subsidy on power generation. “But until then, it is only right that Ndi Enugu – Band A customers enjoy the reduced tariff effective August 1, 2025,” he said.

The commission also announced measures to monitor MainPower’s performance. The company is required to publish daily updates on its website showing the power supply hours for each Band A feeder.

The EERC stated, “Where MainPower fails to deliver on the committed level of service on Band A feeder for two consecutive days, MainPower shall report this to the commission within 24 hours.”

It also added that if the company fails to meet the service level on a feeder for seven straight days, that feeder will be downgraded to the actual supply level recorded.

The Nigerian Electricity Regulatory Commission has said that the Federal Government stopped subsidising Band A customers since April 1, 2024.

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