EERC Reduces Band A Tariff amid FG Subsidy and Local Review
The Enugu State Electricity Regulatory Commission (EERC) has reduced the Band A electricity tariff from N209 to N160 per kilowatt-hour (kWh) for MainPower Electricity Distribution Limited, citing federal subsidies and local market reforms.
The new tariff takes effect from August 1, following the commission’s “Tariff Order for MainPower Electricity Distribution Limited 2025” (EERC/2025/003). The order is backed by the Enugu State Electricity Law 2023, which allows states to regulate their internal power markets, in line with Nigeria’s 2023 Constitutional Amendment and the new Electricity Act.
“We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94,” said Chijioke Okonkwo, EERC chairman. “The price is low because the Federal Government has been subsidising electricity generation cost, which charges only N45 out of the actual cost of N112.”
Okonkwo explained that while the cost-reflective average tariff is N94, Band A will pay N160 to help MainPower manage the transition. “Band A, at N160, will help MainPower to manage the rate shock, and if the subsidy is removed, the savings will assist them in stabilising the tariff over a defined period,” he said.
EERC said MainPower is required to report and publish daily service delivery levels and will face automatic downgrades for consistent underperformance. The commission assured customers that tariffs would remain cost-reflective without needing state financial support.
“Until then, it is only right that ‘Ndi Enugu – Band A customers’ enjoy the reduced tariff from August 1,” Okonkwo added.
