The Enugu State Electricity Regulatory Commission (EERC) has announced a new electricity tariff structure for MainPower Electricity Distribution Limited, lowering the Band A rate from ₦209/kWh to ₦160/kWh, effective August 1, 2025. Tariffs for Bands B, C, D, and E have been frozen.
This update was detailed in Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” and issued over the weekend by the Commission.
According to EERC, the revised tariff reflects current economic conditions and incorporates federal government subsidies for power generation to ease the burden on consumers.
The Commission’s authority stems from the Enugu State Electricity Law 2023, which empowers it to regulate electricity generation, transmission, and distribution exclusively within Enugu State.
This law, signed by Governor Peter Mbah in September 2023, is based on the 2023 Constitutional Amendment granting states autonomy over electricity matters.
It aligns with the Electricity Act 2023, which replaced the 2005 Electric Power Sector Reform Act and introduced reforms such as separating distribution from supply operations and enabling states to manage their electricity markets.
Speaking on the decision, EERC Chairman, Chijioke Okonkwo, explained the rationale behind the tariff adjustment.
“We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of ₦94.”
He noted that the federal government continues to subsidize generation costs, significantly lowering what customers pay.
“The price is low because the Federal Government has been subsidising electricity generation cost which charges only ₦45 out of the actual cost of ₦112. That was how we came about the average tariff of ₦94 as cost reflective tariff at our level as a subnational electricity market.”
Okonkwo explained that the average cost was distributed across bands, resulting in a revised Band A rate:
“Breaking this across the various tariff bands means that Band A will be paying ₦160 while other Bands B, C, D, and E are frozen.”
He said the new Band A rate would serve as a balancing mechanism for MainPower, helping it manage cost impacts while keeping tariffs stable for customers:
“Band A, at ₦160 will help MainPower to manage the rate shock, and if the subsidy is removed, the savings will assist them in stabilising the tariff over a defined period of time. Nevertheless, at all times, the tariff will be cost reflective and will not require any state subsidy.”
The Chairman, however, acknowledged that the current Band A rate could become unsustainable if federal subsidies were withdrawn.
“But until then, it is only right that Ndi Enugu – Band A customers enjoy the reduced tariff effective August 1, 2025,” he added.
To ensure compliance, EERC says it has developed monitoring mechanisms for MainPower to adhere to service obligations tied to the new pricing.
“MainPower is obliged to publish daily on its website a rolling seven-day average daily hours of supply on each Bank A feeder no later than 9am of the next day.”
The Commission warned of consequences for failure to meet service levels:
“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.”
“Where MainPower fails to meet the committed service level to a Band A feeder for seven consecutive days, the feeder shall be automatically downgraded to the recorded level of supply.”
The EERC closed its statement with a pledge to improve electricity services and ensure fair regulation in collaboration with stakeholders.
“The Commission is committed to working with industry developers, investors, customers and Stakeholders to develop and implement strategies and solutions to provide access and improve electricity services to all the citizens of the state, as this is a win for the establishment,” the statement concluded.
