MainPower Electricity Distribution Limited has received a new tariff order from the Enugu State Electricity Regulatory Commission that will reduce the cost of electricity for Band A customers from N209 per kWh to N160/kWh, with effect from August 1, 2025.
After the Nigerian Electricity Regulatory Commission (NERC) gave the state permission to regulate its electricity market, MainPower became the utility that took over from Enugu Electricity Distribution Company.
The Enugu commission issued its Order No. EERC/2025/003/, titled “Tariff Order for MainPower Electricity Distribution Limited 2025,” on Sunday, which included the new tariff. The tariff reduction reflects the Federal Government’s continuous subsidy on power generation, and MainPower took over as the state utility, replacing the Enugu Electricity Distribution Company.
Band A will pay ₦160 to facilitate the transition and stabilize rates, according to EERC Chairman Chijioke Okonkwo, who also explained that a full cost review produced an average tariff of ₦94.
Okonkwo stated,
“We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94. The price is low because the Federal Government has been subsidising electricity generation cost, which charges only N45 out of the actual cost of N112. That was how we came about the average tariff of N94 as a cost-reflective tariff at our level as a subnational electricity market.
“Breaking this across the various tariff bands means that Band A will be paying N160 while other Bands B, C, D, and E are frozen. 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. Nevertheless, at all times, the tariff will be cost-reflective and will not require any state subsidy,”
However, if the federal subsidy is eliminated, the lower rate might not be sustainable. Additionally, EERC has enforced stringent oversight, mandating that MainPower report service levels on a daily basis and downgrade feeders that do not meet Band A supply standards.
The chairman of the commission added, “But until then, it is only right that Ndi Enugu-Band A customers enjoy the reduced tariff effective August 1, 2025.”
Notably, since April 1, 2024, federal subsidies have not been provided to Band A customers.
