The MainPower Electricity Distribution Company and the Association of Nigerian Electricity Distributors (ANED) have again rejected the July 18 tariff order issued by the Enugu Electricity Regulatory Commission (EERC), describing it as flawed and inconsistent with economic realities.
The disputed order reduced electricity tariffs in Enugu State to ₦160 per kilowatt-hour (kWh). MainPower and ANED argue that the Commission failed to follow due process and ignored industry data before arriving at the decision.
MainPower, in its earlier objection, said it was not consulted before the EERC finalized the tariff and subsequently filed a formal petition. In response, the EERC on Thursday held a public hearing at the International Conference Centre (ICC), Enugu, drawing stakeholders from the power sector, consumer groups, and regulatory agencies.
EERC Defends ₦160 Tariff
EERC Chief Executive Officer, Mr. Chijioke Okonkwo, defended the tariff, saying it was determined based on the new Electricity Act 2023, which empowers states to regulate electricity within their territories.
He explained that the ₦160/kWh rate was “prudently determined” after reviewing customer data, distribution costs, and efficiency indices.
“MainPower later petitioned against the order, disputing some assumptions. Rather than amend the order unilaterally, we opted for this hearing to ensure fairness and transparency,” Okonkwo said.
MainPower Claims Process Was Flawed
MainPower’s Managing Director, Dr. Ernest Mupwaya, argued that the EERC breached its own procedures by issuing the tariff order without a bilateral agreement and by relying on “inaccurate assumptions.”
He cited an independent review by KPMG, which reportedly found discrepancies in the Commission’s calculations.
“The parameters used were wrong. We urge the Commission to adopt verified operational data to create a sustainable tariff framework,” Mupwaya said, stressing that the ₦160/kWh rate was unsustainable given current market conditions.
ANED Warns Against Below-Cost Tariffs
Also speaking, ANED Chief Executive Officer, Barr. Sunday Oduntan, cautioned that fixing tariffs below the actual cost of supply could undermine the industry.
“We are distributors, not generators. We buy power from producers at a cost. Setting tariffs below cost reintroduces subsidy concerns,” Oduntan warned.
He noted that while the Electricity Act allows states to regulate electricity, they must align with market realities since Enugu still sources power from the national grid.
“The current national cost for Band A customers is about ₦209 per kWh. Enugu cannot fix arbitrary prices for power it does not generate locally,” he added.
Next Steps
EERC said it would review all submissions before making a final decision on MainPower’s petition. Okonkwo reaffirmed the Commission’s commitment to “fair, transparent, and evidence-based regulation” that balances the interests of both operators and consumers.
“Our goal is to ensure that operators receive fair value for their services while consumers get commensurate value for every naira they pay,” he said.
