Tariff Slash: Enugu residents suffer blackouts as EEDC reduces supply

Enugu Electricity Distribution Company (EEDC) will incur a monthly loss exceeding N1 billion from electricity supply to Enugu State following the tariff slash mandated by the Enugu State Electricity Regulatory Commission (EERC).

Recall that effective August 1, 2025, the tariff for Band A customers was cut from about N209 per kilowatt-hour (kWh) to N160 per kWh, a move intended to make electricity more affordable for consumers in Enugu State.

However, Mainpower Electricity Distribution Limited (MEDL) revealed that EEDC has cut the state’s power supply by 50 per cent, resulting in widespread outages in the past four days, since the new tariff became effective.

This is as residents of Enugu have been berating Mainpower over outages in some parts of Enugu for some days now.

Some parts of the state, especially Ogui Layout, which is classified as Band A customers, have been experiencing power outages since last week.

MEDL, in a public notice on Monday, attributed the blackout to a 50 per cent cut in energy allocation from its parent company, Enugu Electricity Distribution Company PLC (EEDC), stemming from the regulatory tariff reduction.

Because of these projected losses, “EEDC made the difficult decision to reduce the volume of energy supplied to MEDL by 50 per cent.”

MEDL noted that this reduction “significantly affected our ability to serve some of our esteemed customers and led to the ongoing outages.”

MEDL clarified, “We do not receive electricity directly from the national grid. Instead, we rely solely on EEDC, which holds the vesting contract agreement with the Nigerian Bulk Electricity Trading (NBET), responsible for bulk electricity trading.”

The management expressed regret, saying, “We deeply regret the inconvenience caused to our valued customers by this situation.” They also assured the public that “discussions are ongoing with key stakeholders at state and federal levels, including EEDC, EERC, NERC, NISO, and NBET, to resolve this issue swiftly.”

They hoped for a prompt breakthrough: “We are hopeful that a resolution will be reached within the next 48 hours or soon thereafter.”

Regarding delayed communication, MEDL admitted, “This message comes later than we intended because we received full details of the development on short notice.”

The company appealed, “We kindly ask for your continued patience, calm, and understanding as we work diligently with relevant authorities to restore normal service as soon as possible.”

In July, EERC issued a new tariff order reducing the electricity tariff for Band A customers (those guaranteed the most reliable power supply) from N209.50/kWh to N160.40/kWh, effective August 1, 2025. The tariffs for other customer bands were frozen at previous rates.

This decision was justified by the EERC as a cost-reflective measure following a comprehensive review of MEDL’s costs using the 2024 Tariff Methodology Regulations.

EERC argued that federal subsidies on power generation meant the cost to consumers could be much lower and that its action complied with both the 2023 constitutional amendment—granting states legislative authority on electricity and the Electricity Act 2023.

The cut sparked a major rift within the power sector. Distribution and generation companies across Nigeria, supported by their trade group (ANED) and the Association of Power Generating Companies, slammed the tariff reduction, warning that it would worsen the financial viability of the entire power sector and discourage further investment.

The Minister of Power, Adebayo Adelabu, and the Nigerian Electricity Regulatory Commission (NERC) both strongly opposed the Enugu tariff cut.

The minister stated that the federal government did not support blanket removal of electricity subsidies by states and implied support for NERC’s stance that only the federal regulator could determine tariffs for electricity sourced from the national grid or companies licensed federally. The spokesman added, “The federal government will not recommend electricity tariff removal for states”.

NERC issued a formal statement rejecting EERC’s unilateral tariff reduction, stating it was “an unsustainable reduction of the national average generation tariff from N112.60 per kWh to N45.75” and expressed concern that “any unilateral action that distorts the wholesale generation, transmission, and legacy financing costs must be holistically addressed.” NERC insisted EERC lacked jurisdiction to set or alter tariffs for electricity from the national grid or federally licensed operators. The federal regulator emphasised that “while the Electricity Act gives states some autonomy, that authority does not extend to overriding national market structures”.

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