BUSINESS AND ECONOMY

Enugu Slashes Electricity Tariff for Band A Users, Effective August 1, 2025

Enugu electricity tariff for Band A customers drops from N209 to N160 per kilowatt-hour.

New rate begins August 1 as state regulator aligns pricing with federal power subsidy model.

The Enugu State Electricity Regulatory Commission (EERC) has announced a new tariff structure for electricity consumers under Band A, lowering the cost from N209 to N160 per kilowatt-hour. The revised rate, which takes effect from August 1, 2025, applies to customers served by MainPower Electricity Distribution Limited.

MainPower took over operations from the Enugu Electricity Distribution Company after Enugu State secured approval from the Nigerian Electricity Regulatory Commission to independently manage its power sector. The details of the new pricing were outlined in the commission’s recent order, titled EERC/2025/003: Tariff Order for MainPower Electricity Distribution Limited 2025, which was issued on Sunday.

According to the commission, the tariff adjustment reflects the current cost of generating power, which remains subsidized by the Federal Government. “This pricing is based on a cost-reflective model,” the EERC stated, “to ensure consumers benefit from government support on power generation.”

The commission also pointed out that its actions are backed by the Enugu State Electricity Law, signed in September 2023 by Governor Peter Mbah. This law grants EERC the authority to regulate electricity-related operations, including generation, transmission, and distribution, within the state. The legal framework follows the 2023 constitutional amendment, which gave states the power to manage electricity within their boundaries. It also aligns with the federal Electricity Act 2023, which repealed the 2005 Electric Power Sector Reform Act and introduced new policies such as separating supply from distribution.

EERC Chairman, Chijioke Okonkwo, explained that the reduced tariff was the outcome of a comprehensive review of MainPower’s operating costs and licensing requests. “Using our 2024 Tariff Methodology Regulations and Distribution Tariff Model, we determined an average cost of N94 per kilowatt-hour. This figure reflects the ongoing federal subsidy, where power generation costs N112, but only N45 is charged,” he said.

He added that although Band A customers will now pay N160, the rates for Bands B to E will remain unchanged. “This step will help MainPower manage the shock of lower prices. If the subsidy is eventually removed, the money saved will help keep the tariff stable for some time,” Okonkwo noted.

He warned, however, that the N160 rate may not be sustainable if federal subsidies are withdrawn, as tariffs would likely increase. “But for now, Band A customers in Enugu will start paying the reduced amount from August 1,” he said.

The commission also assured residents that it had set up a monitoring system to ensure MainPower delivers the expected service quality. As part of its obligations, MainPower must publish a daily update on its website showing the average power supply duration on all Band A feeders, based on a rolling seven-day period, by 9 a.m. each day.

Stanley Nwako

Nwako Stanley, Editor at Newskobo.com, is a seasoned journalist with 12+ years of experience. Beginning as a cub reporter at National Light… More »

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