The Mainpower Electricity Distribution Company has formally petitioned the Enugu Electricity Regulatory Commission (EERC), requesting an immediate suspension of the recently issued tariff reduction order, which took effect on August 1, 2025.
The company’s spokesperson, Mr. Emeka Ezeh, disclosed in a statement on Wednesday that the petition, dated August 14, 2025, was submitted in protest of the EERC’s Order No. EERC/2025/003, which lowered electricity tariffs for Band A customers from ₦209/kWh to ₦160.40/kWh and froze tariffs for Bands B and C.
The reduction has been widely criticized by key industry stakeholders, including the Nigerian Electricity Regulatory Commission (NERC), generation companies (GenCos), other distribution companies (DisCos), and the Federal Ministry of Power, all of whom argue that the move is financially unsustainable.
According to Ezeh, the petition supported by a four-paragraph affidavit and signed by Dr. Ernest Mupwaya, Managing Director/CEO of Mainpower, contends that the tariff order was unilaterally issued without due process or mutual agreement with Mainpower, violating the commission’s own regulations.
Mainpower claims that while a 3-day consultation meeting was held with EERC from July 2 to 4, 2025, no agreement was reached on key cost parameters, which significantly affect the final tariff.
Despite this, the Commission proceeded to issue and publish the tariff order on July 18, 2025, contrary to procedural requirements laid out in the EERC Tariff Methodology Regulation 2024 (EERC/R004).
Mainpower says the Commission disregarded its own rule that mandates either reaching a cost agreement within 21 days or initiating a formal hearing process.
The company further alleged that after a follow-up meeting on July 25, 2025, EERC sent a letter on July 30, insisting on enforcing the new tariff from August 1, effectively shutting down further dialogue.
Ezeh warned that the tariff reduction poses a severe threat to Mainpower’s financial and operational stability.
The company estimates a monthly revenue shortfall of ₦1.3 billion to ₦1.5 billion, amounting to nearly ₦7 billion in losses over five months.
This shortfall, it says, would jeopardize its ability to meet market settlement obligations to the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator (MO), potentially reducing its compliance rate from 97% to 81%.
Mainpower also fears supply disconnection if it fails to meet its remittance obligations, as electricity supplied to the state is governed by a Vesting Contract between EEDC and NBET, which relies on cost-reflective tariffs set at ₦209/kWh.
The company’s proposed ₦33.2 billion capital investment plan including feeder automation, network expansion, and the deployment of 350,000 smart meters could be derailed, leaving over 42% of customers unmetered into Q1 2026 and exacerbating energy theft and billing inefficiencies.
Operationally, reduced cash flow could hinder infrastructure maintenance, causing more outages and driving dissatisfied customers toward self-generation further eroding Mainpower’s revenue.
The company also warns of reputational damage, diminished investor confidence, and the possibility of industrial action if it struggles to meet payroll and vendor payments.
Mainpower is urging the Commission to:
1. Immediately suspend the implementation of the disputed tariff order.
2. Conduct a formal review of the tariff, with a request to adopt one of two alternative pricing scenarios:
Scenario 1: ₦206.80/kWh, or
Scenario 2: ₦194.54/kWh.
The petition, citing various sections of the 1999 Constitution and the EERC’s own regulatory framework, stresses the need for fair, consultative and transparent tariff-setting processes to ensure the financial sustainability of the Enugu State electricity market.
