Enugu electricity tariff cut sparks mixed reactions

|By Adejumo Adekunle

…Main Power to slash Band A rate by N49 per kilowatt
…Stakeholders divided over cost-reflective pricing and subsidy claims

Mixed reactions have greeted the directive from the Enugu Electricity Regulatory Commission (EERC) mandating Main Power to slash its electricity tariff for Band A customers by N49—from N209/kWh to N160/kWh.

EERC chairman, Chijioke Okonkwo, announced that the new tariff structure will take effect from August 1, 2025. Tariffs for customers in Bands B through E, however, remain unchanged.

Okonkwo explained that the revised rate followed a comprehensive review of the electricity distributor’s costs using the 2024 Tariff Methodology Regulations and the Distribution Tariff Model. He noted that the average cost-reflective tariff was pegged at N94/kWh.

“The price is low because the federal government has been subsidising electricity generation. While the actual cost of generation stands at N112, the government only allows N45 to be charged. That was how we arrived at N94,” Okonkwo said, defending the fairness of the downward adjustment.

Despite the regulator’s position, not all stakeholders are convinced.

Joy Ogaji, Chief Executive Officer of the Association of Power Generation Companies (APGC), firmly opposed the reduction. She argued that the Nigerian government is not operating any subsidy policy, but instead accumulating massive debts in the sector.

“It is imperative to state that there is no FGN policy on subsidies. It’s debt accumulation! If anyone has the proposed policy document, please kindly share it publicly,” Ogaji said, citing a total debt of N4 trillion as of the end of Q1 2025.

Meanwhile, some stakeholders in Enugu and across the power value chain welcomed the reduced tariff, describing it as a timely relief for Band A customers grappling with high electricity costs.

The debate underscores deep divisions in the Nigerian power sector, where questions around subsidy sustainability, cost recovery, and regulatory fairness continue to spark controversy.