The Enugu State Electricity Regulatory Commission (EERC) has announced a significant reduction in the Band A electricity tariff, dropping it from N209 per kilowatt-hour to N160 per kilowatt-hour, effective August 1, 2025.
The decision, detailed in the Commission’s Order No. EERC/2025/003, titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” aims to ease the financial burden on consumers.
The EERC attributed the tariff cut to a review of MainPower Electricity Distribution Limited’s costs, guided by the Commission’s Tariff Methodology Regulations 2024 and the Distribution Tariff Model.
The decision aligns with federal government subsidies that lower electricity generation costs from N112 to N45 per kilowatt-hour, resulting in an average cost-reflective tariff of N94 for Enugu’s subnational electricity market.
EERC Chairman Chijioke Okonkwo explained, “The N160 rate for Band A allows MainPower to manage rate shock while maintaining a cost-reflective tariff.
Tariffs for Bands B, C, D, and E remain unchanged, and no state subsidy is required.” The reduction follows a review of MainPower’s tariff and licensing applications for its new subsidiary operating in Enugu.
This development is rooted in the Enugu State Electricity Law of 2023, signed by Governor Peter Mbah in September 2023, which empowers the state to regulate its electricity market.
The law was enabled by the 2023 Constitutional Amendment and the Electricity Act of 2023, which replaced the 2005 Electric Power Sector Reform Act.
These reforms grant states authority over power generation, transmission, and distribution within their borders, marking a shift toward decentralized electricity markets.
The tariff reduction is expected to benefit consumers while supporting MainPower’s operational stability, particularly if federal subsidies are adjusted in the future.
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