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 Band A customers, lowering the rate from N209 per kilowatt-hour (kWh) to N160/kWh, effective August 1, 2025.
The new rate, detailed in EERC’s Order No. EERC/2025/003 titled “Tariff Order for MainPower Electricity Distribution Limited 2025”, was issued on Sunday. MainPower Electricity Distribution Limited took over from the Enugu Electricity Distribution Company following Enugu State’s approval by the Nigerian Electricity Regulatory Commission (NERC) to independently regulate its power sector.
According to the EERC, the revised tariff reflects the federal government’s subsidy on electricity generation and is designed to be cost-reflective, ensuring consumers benefit directly from that subsidy.
The commission based its decision on the Enugu State Electricity Law, 2023, which grants it regulatory authority over power generation, transmission, and distribution activities within the state. This law, signed by Governor Peter Mbah in September 2023, aligns with the 2023 constitutional amendment that empowered states to manage electricity markets within their jurisdictions. The development also follows the enactment of the Electricity Act, 2023, which replaced the Electric Power Sector Reform Act of 2005, introducing major reforms including the unbundling of distribution and supply services, and allowing states to establish their own electricity markets.
Explaining the tariff revision, EERC Chairman Chijioke Okonkwo said the reduction followed a detailed review of MainPower’s tariff and license applications under the new regulatory framework.
“We assessed their entire cost structure using our Tariff Methodology Regulations 2024 and the Distribution Tariff Model, which gave us an average cost-reflective price of N94/kWh. This low average is due to the federal government subsidising electricity generation, covering N45 out of the actual cost of N112/kWh,” Okonkwo said.
He noted that Band A customers will now pay N160/kWh, while tariffs for Bands B, C, D, and E remain unchanged. “The N160 rate allows MainPower to manage potential rate shocks. If the subsidy is eventually removed, the savings accrued will help cushion future price increases. Importantly, the tariff remains cost-reflective and does not require state subsidy,” he added.
Okonkwo, however, cautioned that sustaining the N160/kWh tariff may prove difficult if the federal government eliminates the current generation subsidy, which could lead to higher electricity costs across the board.
“But for now, Band A customers in Enugu will enjoy a reduced tariff from August 1, 2025,” he affirmed.
To ensure accountability and quality of service, EERC has also introduced new monitoring and compliance measures. MainPower is now required to publish daily on its website the rolling seven-day average of power supply hours for each Band A feeder by 9 a.m. the following day.
“Should MainPower fail to meet its committed service levels on a Band A feeder for two consecutive days, it must notify the commission within 24 hours. If service falls short for seven consecutive days, the feeder will be automatically downgraded to reflect actual supply levels,” the commission stated.
Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) clarified that the federal government stopped subsidising electricity consumed by Band A customers as of April 1, 2024.