The Enugu State Electricity Regulatory Commission has announced a significant reduction in electricity tariffs for Band A customers under MainPower Electricity Distribution Limited.
The new rate, which drops from N209 per kilowatt-hour to N160/kWh, will take effect from August 1, 2025.
MainPower, the newly licensed distribution company in Enugu, took over from the Enugu Electricity Distribution Company following the state’s regulatory autonomy granted by the Nigerian Electricity Regulatory Commission.
This development is in line with the Enugu State Electricity Law 2023 and the Electricity Act 2023, which empower states to regulate electricity within their jurisdiction.
According to the EERC’s Order No. EERC/2025/003 titled “Tariff Order for MainPower Electricity Distribution Limited 2025”, the tariff reduction is driven by the need to align pricing with the actual cost of electricity generation, particularly in light of federal subsidies.
“The commission’s decision is cost-reflective,” said EERC Chairman, Chijioke Okonkwo. “Our review using the 2024 Tariff Methodology Regulations and the Distribution Tariff Model revealed an average cost of N94 per kilowatt-hour. This is largely due to the Federal Government subsidizing generation costs—charging only N45 instead of the actual N112.”
Explaining the rationale behind the new N160/kWh rate for Band A, Okonkwo noted: “The tariff will help MainPower manage rate shock, considering the transition to a state-controlled electricity market. If federal subsidies are removed in the future, the savings generated now will help stabilize future tariffs.”
He also emphasized that the new pricing structure will remain sustainable only if the federal generation subsidy continues. “The removal of that subsidy could push tariffs beyond the current levels,” he warned. “But until then, Ndi Enugu—Band A customers—should enjoy the reduced rate.”
The EERC also clarified that tariffs for Bands B, C, D, and E remain frozen at their current rates.
To ensure service quality, the EERC has mandated MainPower to publish a daily seven-day rolling average of power supply for each Band A feeder. “If a Band A feeder fails to meet the committed service level for two consecutive days, MainPower must notify the commission within 24 hours,” the order stated. “Should the underperformance persist for seven days, the affected feeder will be downgraded automatically.”
Despite the state’s efforts, the NERC has reiterated that as of April 1, 2024, the Federal Government no longer subsidizes electricity consumption for Band A customers nationwide.
The Enugu State government, under Governor Peter Mbah, has committed to positioning the state as a model for decentralized electricity governance, ensuring consumers receive fair pricing and reliable service under the newly restructured system.
