
The Enugu State Electricity Regulatory Commission (EERC) has officially approved a downward review of the electricity tariff for Band A customers under MainPower Electricity Distribution Limited. The revised tariff rate has been reduced from N209 to N160 per kilowatt-hour (kWh), reflecting a significant decrease in energy costs for premium customers in Enugu State.
MainPower Electricity Distribution Limited, which succeeded the Enugu Electricity Distribution Company (EEDC), now operates under the framework of the newly formed Enugu State electricity market. This restructuring is part of the state’s broader initiative to localize and enhance electricity regulation and distribution within its borders.
The tariff cut was formally announced through Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025.” This order was issued over the weekend and is scheduled to take effect from August 1, 2025. The announcement marks a milestone in the regulation of electricity pricing in the state.
According to the Chairman of EERC, Chijioke Okonkwo, the new Band A tariff represents a “cost-reflective” rate, carefully calculated to factor in the continued electricity generation subsidy provided by the federal government. This subsidy plays a crucial role in making the tariff more affordable for end users.
“We reviewed their entire costs using our Tariff Methodology Regulations 2024 and applied the Distribution Tariff Model to determine the appropriate rate,” Okonkwo stated. “The actual cost of generating power is N112/kWh, but with a federal subsidy of N67, the effective cost comes down to N45. This subsidy makes it feasible to set an average tariff of N94/kWh for MainPower under the subnational market framework in Enugu.”
The Commission concluded that while tariffs for Bands B through E will remain unchanged for now, the reduced Band A tariff of N160/kWh gives MainPower a fair opportunity to transition from the previously higher rates, without compromising on the quality of service or the financial health of the company.
Okonkwo, however, cautioned that the current pricing structure may only be temporary. “If the federal government decides to withdraw the subsidy on electricity generation, the existing Band A tariff might become unsustainable, leading to potential increases in the future,” he explained.
“But until such a change occurs, it is only fair that Band A customers in Enugu enjoy the benefit of this lower tariff starting from August 1,” he added.
To uphold accountability and ensure that the benefits of the new tariff structure are matched by service delivery, the EERC has implemented new compliance monitoring requirements for MainPower. The utility provider is now mandated to:
EERC reaffirmed its ongoing commitment to protecting consumers and enhancing service delivery. The Commission also pledged to maintain its collaborative approach by engaging with developers, investors, and key stakeholders to further improve electricity access, service quality, and reliability across Enugu State.
“This is a win for the electricity sector in Enugu. We are committed to ensuring MainPower delivers on its service obligations without placing an undue financial burden on consumers,” the Commission emphasized.