Power sub-station

The Mainpower Electricity Distribution Company, operator of the power distribution network in Enugu State, has filed a petition against the Enugu State Electricity Regulatory Commission (EERC) over its newly issued tariff reduction order.

The petition, dated 14 August 2025 and signed by the company’s Managing Director and CEO, Ernest Mupwaya, challenges the EERC’s decision to slash electricity tariffs, warning that the order could trigger severe financial losses and threaten the sustainability of its operations.

The New Tariff Order

On 18 July 2025, the EERC published a new tariff order compelling Mainpower to reduce the cost of electricity for Band A customers from ₦209/kWh to ₦160/kWh, effective 1 August 2025.

While the order was aimed at easing the burden of high electricity costs on consumers in Enugu State, Mainpower argued that the directive was issued without proper agreement between the company and the regulator.

The electricity distributor further noted that the order contradicts the Methodology for Tariff Regulation (EERC/R004, 2024), which requires that disagreements on cost parameters be resolved through formal hearings.

Mainpower’s Petition

In its filing, Mainpower insisted that:

• It never reached an agreement with the EERC on key tariff-sensitive parameters during meetings held between 2 and 4 July 2025.
• The company was “surprised” when the EERC unilaterally published the tariff order despite pending negotiations.
• A subsequent meeting scheduled for 25 July 2025 to resolve the concerns was rendered ineffective after the regulator reaffirmed its decision in a letter dated 30 July 2025.

Mainpower warned that the downward review would:

• Cause monthly revenue shortfalls of between ₦1.3 billion and ₦1.5 billion, translating to a cumulative gap of ₦6.98 billion over five months.
• Lower its compliance with settlement obligations to the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator (MO) from the current 97% to about 81% by the end of 2025.
• Expose the company to business sustainability risks, including supply disconnection, operational disruptions, and reputational damage.

Reliefs Sought

Mainpower has therefore urged the EERC to:

1. Suspend implementation of the new tariff order pending determination of its petition.
2. Review the tariff in line with its proposed alternatives of ₦206.80/kWh (Scenario 1) or ₦194.54/kWh (Scenario 2).

Wider Implications

Energy experts say the case could test the balance between protecting consumers from high electricity tariffs and ensuring financial viability for distribution companies. The dispute also highlights persistent tensions in Nigeria’s electricity market, where regulatory decisions often clash with operators’ sustainability concerns.

While the EERC’s tariff reduction order has been welcomed by consumers in Enugu, questions remain about whether such reductions are sustainable given the rising cost of power generation and supply obligations tied to national contracts.

Conclusion