NERC Rules Enugu Electricity Regulatory Commission Lacks Authority To Set Tariffs For National Grid Power.
The Nigerian Electricity Regulatory Commission (NERC) has declared that the Enugu Electricity Regulatory Commission (EERC) lacks the authority to determine electricity tariffs for power generated and transmitted through the national grid. The landmark ruling, announced on Thursday, 24 July 2025, clarifies the regulatory boundaries following a contentious tariff reduction by the EERC, which had sparked debates across Nigeria’s power sector.
The EERC had recently slashed electricity tariffs for Band A customers in Enugu State from N209 per kilowatt-hour (kWh) to N160 per kWh, effective from 1 August 2025, prompting resistance from power distribution companies and generating concerns about the stability of the Nigerian Electricity Supply Industry (NESI). NERC’s ruling asserts that only the federal regulator holds the mandate to set tariffs for electricity sourced from the national grid, as this falls under its jurisdiction as outlined in the Electricity Act 2023.
NERC’s statement, issued by its Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye, emphasised that while the Electricity Act 2023 allows states to regulate intra-state electricity markets, including mini-grids and local power plants, this authority does not extend to power supplied through the national grid. The commission noted that the EERC’s tariff order risked disrupting the financial framework of the NESI, particularly as it did not account for the full costs of generation and transmission borne by the national system.
The decision has been met with mixed reactions. The Association of Nigerian Electricity Distributors (ANED), led by CEO Sunday Oduntan, welcomed NERC’s ruling, arguing that uncoordinated state-level tariff reductions could lead to liquidity shortfalls, impacting the entire energy supply chain, from generation companies (GenCos) to gas suppliers. However, consumer groups in Enugu have expressed disappointment, citing the reduced tariff as a relief for residents facing economic pressures.
NERC has called for dialogue with the EERC and other stakeholders to ensure a cohesive approach to tariff regulation that balances consumer needs with the industry’s financial viability. The commission reiterated its commitment to fostering a transparent and investor-friendly electricity market while protecting the integrity of the national grid. As Nigeria navigates its evolving energy landscape, this ruling underscores the complexities of balancing federal and state regulatory powers in the quest for affordable and reliable electricity.
