Enugu State Slashes Band A Electricity Tariff To ₦160/kWh.
The Enugu State Electricity Regulatory Commission (EERC) has announced a significant reduction in electricity tariffs for Band A customers, cutting the rate from N209 per kilowatt-hour (kWh) to ₦160/kWh, effective from 1 August 2025. This move, aimed at easing the financial burden on high-usage consumers, marks a pivotal step in the state’s efforts to regulate its electricity market.
The decision, detailed in the Commission’s Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” follows a comprehensive review of MainPower Electricity Distribution Limited’s tariff and licence applications. MainPower, which succeeded the Enugu Electricity Distribution Company (EEDC), now operates under Enugu’s state-regulated electricity framework, established under the Enugu State Electricity Law 2023. This law empowers the EERC to oversee power generation, transmission, and distribution within the state, following Nigeria’s 2023 constitutional amendment that decentralised electricity regulation.
EERC Chairman Chijioke Okonkwo explained that the tariff cut reflects federal government subsidies, which reduce electricity generation costs from ₦112/kWh to ₦45/kWh. “We reviewed MainPower’s costs using our Tariff Methodology Regulations 2024 and the Distribution Tariff Model, arriving at an average cost-reflective tariff of ₦94/kWh,” Okonkwo said. “This allows us to set the Band A tariff at ₦160/kWh, while tariffs for Bands B, C, D, and E remain unchanged to protect lower-tier consumers.” The reduced rate is designed to help MainPower manage financial stability while ensuring affordability for Band A customers, typically those with at least 20 hours of daily power supply, such as hospitals and industrial zones.
To ensure service quality, the EERC has introduced strict monitoring measures. MainPower must publish daily updates on its website, detailing the rolling seven-day average of power supply hours for each Band A feeder by 9 a.m. the following day. Failure to meet service commitments for two consecutive days requires a report to the Commission within 24 hours, and a week-long failure will result in the automatic downgrading of the affected feeder to a lower band.
Okonkwo cautioned that the ₦160/kWh tariff may not be sustainable if federal subsidies are withdrawn, potentially leading to higher rates. “Until such a change occurs, it is only fair that the people of Enugu benefit from this reduction,” he added. The EERC’s commitment to cost-reflective pricing, without additional state subsidies, underscores its aim to balance consumer relief with the financial viability of the electricity sector.
The tariff reduction has been welcomed by residents and businesses in Enugu, who have long grappled with high electricity costs amid economic challenges. The EERC’s proactive measures, enabled by the state’s regulatory autonomy, position Enugu as a leader in Nigeria’s evolving subnational electricity market, promising improved access and reliability for its citizens.
