By Muhammad Mamman
In a significant move to ease the financial burden on residents, the Enugu State Electricity Regulatory Commission (EERC) has announced a substantial reduction in the Band A electricity tariff, cutting it from N209 per kilowatt-hour to N160 per kilowatt-hour, effective from August 1, 2025. This decision, detailed in the EERC’s Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” reflects a strategic effort to align tariffs with federal subsidies and enhance affordability for consumers in Enugu State.
The tariff reduction follows a meticulous review of MainPower Electricity Distribution Limited’s tariff and licensing applications for its new subsidiary, SubCo, which operates within Enugu’s burgeoning electricity market. EERC Chairman Chijioke Okonkwo explained that the decision was grounded in the Commission’s Tariff Methodology Regulations 2024 and its Distribution Tariff Model. “Our analysis yielded an average cost-reflective tariff of N94 per kilowatt-hour, bolstered by a federal subsidy that offsets the generation cost from N112 to N45,” Okonkwo stated. “This enables us to set Band A at N160, while tariffs for Bands B, C, D, and E remain unchanged, shielding consumers from rate shocks.”
This landmark adjustment is underpinned by the Enugu State Electricity Law of 2023, signed by Governor Peter Mbah in September 2023, which empowers the state to regulate its electricity market. The law was enacted in response to the 2023 Constitutional Amendment, which devolved legislative authority over electricity to states, and the subsequent Electricity Act of 2023. This legislation replaced the Electric Power Sector Reform Act of 2005, introducing pivotal reforms such as the separation of distribution and supply functions and granting states autonomy to oversee local electricity operations.
The tariff reduction is expected to provide immediate relief to Band A consumers, who typically include high-demand users such as businesses and industries, while ensuring MainPower’s financial stability. Okonkwo emphasised that the N160 rate for Band A is designed to mitigate the impact of potential subsidy withdrawals, maintaining a cost-reflective structure without requiring state subsidies. “This approach not only supports consumers but also ensures the sustainability of our electricity market,” he added.
As Enugu State pioneers these reforms, the EERC’s proactive measures signal a new era of responsive and consumer-focused energy regulation, positioning the state as a model for subnational electricity markets across Nigeria. Residents and businesses alike can anticipate more affordable and reliable power, fostering economic growth and improving quality of life from August 2025.
