Electricity consumers in Enugu State under Band A tariff classification are set to enjoy reduced billing rates from next month, as the state electricity regulator slashed prices by nearly 24 per cent — a move seen as both relief for households and a landmark in Nigeria’s decentralised power sector.
Effective 1 August 2025, MainPower Electricity Distribution Ltd will charge Band A customers N160 per kilowatt-hour, down from the previous N209, following a directive by the Enugu State Electricity Regulatory Commission (EERC).
The tariff review follows a comprehensive assessment of the company’s costs under the EERC’s Tariff Methodology Regulations 2024, which pegged the average generation cost at N94/kWh — a figure made possible by federal subsidies still supporting the power supply chain.
“This tariff is cost-reflective at the state level, given that the Federal Government continues to subsidise power generation,” said Chijioke Okonkwo, Chairman of the EERC. “It allows consumers to benefit directly from the subsidy, while helping MainPower manage rate shock.”
The adjustment comes in the wake of constitutional reforms that handed states control over their electricity markets. Enugu, among the first to seize the opportunity, passed its electricity law in 2023 and formally unbundled from the national grid regulation this year, replacing the Enugu Electricity Distribution Company with the locally licensed MainPower.
Though Bands B to E remain unaffected by the revision, authorities warn that any withdrawal of the federal subsidy could prompt upward adjustments, with Band A likely to be the most exposed.
Still, the EERC insists the move is both fair and prudent, citing Enugu’s new powers under the Electricity Act 2023, which enables states to enforce tariff frameworks tailored to local realities.
Consumer advocates welcomed the reduction but urged strict monitoring of service delivery. The EERC said it had imposed daily reporting requirements on MainPower, mandating disclosure of supply hours and feeder performance. Persistent shortfalls, the regulator said, would lead to automatic feeder downgrades and corresponding tariff reductions.
