Enugu electricity slashes tariff for Band A customers to N160/kWh

The Enugu State Electricity Regulatory Commission (EERC) has reduced the electricity tariff for Band A customers under MainPower Electricity Distribution Limited from N209 per kilowatt-hour to N160/kWh, effective August 1, 2025.

The new rate was announced in a tariff order issued Sunday, titled Order No. EERC/2025/003 – Tariff Order for MainPower Electricity Distribution Limited 2025.

The commission said the new tariff reflects federal subsidies on electricity generation and was reached using its Tariff Methodology Regulations 2024 and a Distribution Tariff Model.

MainPower, which succeeded the Enugu Electricity Distribution Company following Enugu State’s regulatory autonomy over its electricity market, becomes the first beneficiary of this cost-reflective framework. The regulatory powers are derived from the Enugu State Electricity Law 2023, which was signed into law by Governor Peter Mbah after the 2023 constitutional amendment decentralised electricity regulation in Nigeria.

EERC Chairman, Chijioke Okonkwo, explained that while the average cost of service was calculated at N94/kWh—largely due to a federal subsidy that reduces the generation cost from N112 to N45—Band A customers would pay a slightly higher rate of N160/kWh to help MainPower manage revenue shortfalls and rate shocks.

“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 of time,” Okonkwo said.

He added that tariffs for customers in Bands B, C, D, and E would remain frozen for now. However, he warned that the N160/kWh Band A rate could rise significantly if the Federal Government discontinues the current subsidy on electricity generation.

“Until then, it is only right that Ndi Enugu – Band A customers – enjoy the reduced tariff effective August 1, 2025,” he stated.

The EERC reaffirmed its commitment to cost-reflective pricing without imposing additional subsidy burdens on the Enugu State government.

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