|By Adejumo Adekunle
…Electricity consumers risk erratic power supply if they pay new rate
…Oduntan says EERC’s directive unsustainable, warns of looming setbacks
The Association of Nigerian Electricity Distributors (ANED) has issued a stark warning to electricity users in Enugu State, saying Band A customers will face power outages if they adopt the new N160/kWh tariff set by the Enugu Electricity Regulatory Commission (EERC).
Sunday Oduntan, the Executive Director of Research and Advocacy at ANED, gave the warning during an interview with TVC on Thursday, describing the EERC’s directive as unrealistic and economically dangerous.
EERC had recently directed MainPower, a subsidiary of the Enugu Electricity Distribution Company (EEDC), to slash its Band A tariff from N209 to N160 per kilowatt-hour under its new Multi-Year Tariff Order (MYTO). The announcement sparked mixed reactions across Nigeria’s power sector, with concerns mounting over its implications for cost recovery and power supply reliability.
Oduntan advised residents in Enugu under Band A not to celebrate the new pricing, saying they were being misled. According to him, such a reduction will inevitably lead to frequent blackouts and plunge the region back into the “dark old days” of poor electricity supply.
“If you are in Band A and in Enugu, and they are now asking you to pay N160 per kilowatt-hour, they are deceiving you. At the end of the day, your light will begin to go off. We are talking about cost recovery,” Oduntan warned.
He said the liquidity crisis that once crippled the sector could resurface if cost-reflective tariffs are not maintained. “Things are better today because of the issue of liquidity. It was bad in those days due to liquidity. We must avoid going back,” he stressed.
Oduntan also revealed that beyond distribution companies, electricity generation firms have also rejected EERC’s revised Band A tariff, fearing it could destabilise the already fragile sector.
Meanwhile, the federal government has said it will not recommend the removal of Band A tariffs in any state, as it currently struggles with a power sector debt burden exceeding N5 trillion.
Amid the controversy, the Electricity Consumer Protection Advocacy has expressed skepticism over the implementation of EERC’s new order on MainPower, noting that enforcement mechanisms remain unclear.
The debate over Nigeria’s electricity pricing continues to widen, with many stakeholders warning that politicising tariffs may further endanger power sector reforms and discourage future investments.
