Enugu: MEDL gives reasons for power outage

The management of Mainpower Electricity Distribution Limited (MEDL) has said the current power outage being experienced in some parts of Enugu State was as a result of reduced load allocation by the Enugu Electricity Distribution Company Plc (EEDC).

According to MEDL in a statement made available to Tribune Online in Abuja on Monday, the development came as a result of the recent issuance of a new Tariff Order to Mainpower by the Enugu Electricity Regulatory Commission (EERC) which reduced the tariff for Band A customers from N209.50/kWh to N160.40/kWh noting that upon receipt of the Tariff Order, the company by obligation informed his energy supplier, the EEDC.

The MEDL management however said upon analyzing the implications of the new tariff, EEDC concluded that implementing it would result in a monthly loss of over N1 billion, which makes it impossible for EEDC to meet her obligations to the Market.

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It also clarified it does not receive electricity directly from national grid but rely solely on EEDC which holds the vesting contract agreement with the Nigerian Bulk Electricity Trading (NBET), the organization responsible for electricity bulk trading. 

While regretting the inconvenience the situation may have caused its customers, MEDL assured that discussions are ongoing with key stakeholders at the state and federal levels including EEDC, EERC, NERC, NISO, and NBET to quickly resolve the issue.

The statement read, “Mainpower Electricity Distribution Limited (MEDL) wishes to inform its esteemed customers in parts of Enugu State who have been experiencing power outages over the past four days that the situation is due to a significant drop in energy allocation from our parent company, Enugu Electricity Distribution Company Plc (EEDC).

“This development is a result of the recent issuance of a new Tariff Order to Mainpower by the Enugu Electricity Regulatory Commission (EERC). The Order reduced the tariff for Band A customers from N209.50/kWh to N160.40/kWh.

“Upon receipt of the Tariff Order, MEDL, by obligation, promptly updated EEDC (our energy supplier). After analyzing the implications of the new tariff, EEDC concluded that implementing it would result in a monthly loss of over N1 billion, which makes it impossible for EEDC to meet her obligations to the Market.

“Consequently, and to mitigate these losses, EEDC made the difficult decision to reduce the volume of energy supplied to MEDL. This has unfortunately resulted in MEDL receiving only about 50% of its usual energy allocation, significantly affecting our ability to serve some of our esteemed customers.”

The statement added, “It is important to clarify that MEDL does not receive electricity directly from National Grid.

“Instead, we rely solely on EEDC, which holds the vesting contract agreement with the Nigerian Bulk Electricity Trading (NBET), the organization responsible for electricity bulk trading.

“We deeply regret the inconvenience this situation has caused our valued customers. Please be assured that discussions are ongoing with key stakeholders at the state and federal levels (including EEDC, EERC, NERC, NISO, and NBET) to quickly resolve this issue. We are hopeful that a resolution will be reached within the next 48 hours or soon thereafter.

“We also acknowledge that this communication is coming later than expected. The delay was due to the short notice with which we received the full details of the development. We appeal for your continued patience, calm, and understanding as we work diligently with the relevant authorities to restore normal service as soon as possible.”

NIGERIAN TRIBUNE