MAINPOWER Electricity Distribution Limited (MEDL) has attributed the prolonged power outages experienced by customers in parts of Enugu State over the last four days to a drastic cut in energy supply from its parent company, Enugu Electricity Distribution Company PLC (EEDC).
MEDL, in a statement, noted that the reduction in supply followed the issuance of a new Tariff Order by the Enugu Electricity Regulatory Commission (EERC), which slashed the tariff for Band A customers from N209.50 per kilowatt-hour (kWh) to N160.40/kWh.
The company explained that while it promptly informed EEDC about the revised tariff, EEDC’s subsequent analysis indicated that implementation of the new rates would lead to a staggering monthly loss exceeding N1 billion. As a result, EEDC opted to significantly reduce the volume of energy supplied to MEDL to limit its financial exposure.
It stated: “After analysing the implications of the new tariff, EEDC concluded that implementing it would result in a monthly loss of over N1 billion, which makes it impossible for the company to meet its obligations to the market.”
MEDL added that it’s now receiving only about 50 per cent of its usual energy allocation, which has made it difficult for it to serve some of its customers.
According to the company, the development underscores the fragile state of Nigeria’s power distribution framework, where tariff adjustments without corresponding subsidy structures or revenue guarantees can trigger supply chain disruptions.