NERC Faults Enugu Tariff Cut, Says EERC Lacks Power To Fix Prices
The Nigerian Electricity Regulatory Commission (NERC) has faulted the recent tariff reduction by the Enugu State Electricity Regulatory Commission (EERC).
The commission declared that the state regulator lacks the authority to fix electricity prices where the supply is sourced from the national grid.
In a statement issued Thursday night, NERC clarified that while the 2023 Electricity Act grants states the right to regulate electricity within their jurisdiction, such powers do not extend to generation and transmission infrastructure established under federal law and licensed by the national regulator.
“The Commission’s attention has been drawn to the increasing stakeholders’ concerns on the Tariff Order (Order No. EERC/2025/003) issued by the Enugu State Electricity Regulatory Commission to its licensee, MainPower Electricity Distribution Limited (MEDL), which relies exclusively on electricity from the national grid,” the statement read.
It noted that the tariff cut—which slashed rates for Band A customers in Enugu State to ₦160.4 per kilowatt-hour—had raised sector-wide concerns over who would bear the cost of the subsidy component.
According to NERC, the reduction was achieved by lowering the average generation tariff from ₦112.60/kWh to ₦45.75/kWh, representing a shortfall of ₦66.85 per unit.
NERC warned that such unilateral action could distort the market and jeopardise the financial stability of the Nigerian Electricity Supply Industry (NESI).
“States do not have jurisdiction over the national grid and over electric power stations established under federal laws or operating under licences issued by the Commission.
“They must holistically incorporate the wholesale costs of grid supply into their tariffs for end-use customers or be prepared to subsidise any deviations”, NERC stated.
The Commission cited Section 34(1) of the Electricity Act, which mandates it to “create, promote and preserve efficient electricity industry and market structures, and ensure the optimal utilisation of resources for the provision of electricity,” and maintained that state regulators are expected to operate within that framework.
While acknowledging the statutory roles of both NERC and EERC, the national regulator emphasised the need for decisions that do not compromise the sustainability of the national grid or the wholesale electricity market.
NERC said it is currently engaging EERC to address any misunderstandings surrounding the tariff order and reaffirmed its commitment to ensuring cost-reflective pricing and compliance with applicable federal laws.
NERC Faults Enugu Tariff Cut, Says EERC Lacks Power To Fix Prices is first published on The Whistler Newspaper
