Enugu Slashes Band A Electricity Tariff to N160/kWh
The Enugu State Electricity Regulatory Commission (EERC) has announced a significant reduction in electricity tariffs for its Band A customers, lowering the rate from N209 to N160 per kilowatt-hour.
The new rate, which takes effect from August 1, 2025, applies to customers served by MainPower Electricity Distribution Limited.
MainPower took over electricity distribution in Enugu following the state’s successful bid to manage its own electricity market under the Nigerian Electricity Regulatory Commission’s approval. The revised tariff was disclosed in EERC’s Order No. EERC/2025/003, titled *‘Tariff Order for MainPower Electricity Distribution Limited 2025’*, issued Sunday.
The revised pricing, according to the commission, reflects the cost of power generation, which is still being subsidised by the Federal Government. EERC emphasized that the N160 rate is part of a broader cost-reflective strategy aimed at benefiting consumers without the need for a state subsidy.
EERC based its decision on the Enugu State Electricity Law of 2023, which authorizes the state to regulate its own power sector, in line with the 2023 Constitutional Amendment and the new Electricity Act. These legal reforms grant states the power to oversee electricity generation, transmission, and distribution within their territories.
Explaining the tariff review, EERC Chairman Chijioke Okonkwo said the decision followed a thorough review of MainPower’s application and costs using the commission’s 2024 Tariff Methodology Regulations and a distribution tariff model.
He noted that the average cost of supplying power in the state was determined to be N94/kWh, largely due to the ongoing Federal Government subsidy, which offsets a significant portion of the actual generation cost.
Okonkwo emphasized that the N160 Band A rate was designed to help MainPower absorb the impact of a price drop while maintaining financial stability, cautioning that the reduced tariff might not be sustainable if the Federal Government were to end the subsidy on power generation, which currently brings down the cost from N112 to N45.
“Until such a change occurs, it is only right that Ndi Enugu – Band A customers – benefit from the reduced tariff,” the Chairman said.
According to him, EERC has also introduced new compliance and monitoring requirements to ensure that MainPower delivers on its promised service levels. The utility is now required to publish a daily seven-day rolling average of power supply on each Band A feeder. Any failure to maintain the expected service level for two consecutive days must be reported to the commission within 24 hours, and a seven-day failure will result in automatic downgrading of the affected feeder.
It will be recalled that the Nigerian Electricity Regulatory Commission (NERC) had previously confirmed that the Federal Government removed subsidies for Band A electricity consumers as of April 1, 2024.
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