Enugu Electricity Consumers Get Relief as EERC Slashes Band A Tariff from ₦209 to ₦160/kWh – New Electricity Tariff Begins August 1, 2025

New Tariff Alert: Enugu’s Electricity Cost for Band A Slashed to ₦160/kWh – Starting August 1

In a welcome development that promises relief for thousands of electricity consumers in Enugu State, the Enugu State Electricity Regulatory Commission (EERC) has approved a new tariff structure for electricity consumers under the Band A category. Starting from August 1, 2025, residents who fall under this band will now pay ₦160 per kilowatt-hour (kWh), down from the previous ₦209/kWh.
The revised tariff was officially communicated through the EERC’s Order No. EERC/2025/003 titled “Tariff Order for MainPower Electricity Distribution Limited 2025” and marks a significant move towards ensuring affordability and transparency in electricity pricing in the state.

Electricity costs in Nigeria have long been a source of concern for citizens and businesses alike. Band A consumers, who are typically supposed to enjoy the highest level of electricity supply (20 hours and above daily), have often found themselves struggling with bills that are high and service that is inconsistent. The decision by EERC to reduce the Band A tariff to ₦160/kWh is a direct attempt to ease the financial burden on these consumers, without compromising on the quality of service. According to the Commission, the new tariff is “cost-reflective,” taking into account the current federal government subsidies on electricity generation.

Chairman of the EERC, Mr. Chijioke Okonkwo, explained that the Federal Government currently subsidizes the cost of electricity generation. Under the subsidy regime, consumers are charged only ₦45 out of the actual generation cost of ₦112. This means the government is covering a significant portion of the cost to help stabilize power prices across the country.

“We reviewed their [MainPower’s] entire costs using our Tariff Methodology Regulations 2024 and applied our Distribution Tariff Model. Based on this, we derived an average price of ₦94,” Mr. Okonkwo stated. “However, for Band A consumers, the adjusted rate is ₦160. This figure helps MainPower manage the potential revenue shock while maintaining sustainability in service delivery.”

MainPower Electricity Distribution Limited is the newly licensed utility company responsible for distributing electricity within Enugu State. It is the successor company to the Enugu Electricity Distribution Company (EEDC), which previously handled electricity distribution in the region.
This change is part of broader electricity sector reforms in Nigeria that give states more autonomy over electricity matters within their jurisdictions.

The EERC’s actions are backed by the Enugu State Electricity Law 2023, which was signed into law by Governor Peter Mbah in September 2023. The law was enacted following the 2023 constitutional amendment that granted state governments the legislative powers to regulate electricity generation, transmission, and distribution within their territories. This legal shift was further solidified by the enactment of the National Electricity Act 2023, which repealed the Electric Power Sector Reform Act of 2005. One of the key highlights of this new legislation is the separation of distribution and supply operations and the empowerment of states to develop and regulate their own electricity markets.
According to EERC’s breakdown:

• Band A consumers will now pay ₦160/kWh.
• Bands B, C, D, and E tariffs are currently frozen, meaning no change in pricing for now.
• The average cost-reflective tariff across all bands is calculated at ₦94, made possible due to existing federal subsidies.

This approach ensures that the higher-paying consumers help balance the cost implications while still keeping the system functional and fair.
While the new tariff is a welcome development, there’s a caveat. Mr. Okonkwo pointed out that the ₦160/kWh rate for Band A consumers may not be sustainable if the Federal Government eventually discontinues the electricity generation subsidy.

“If the federal subsidy is withdrawn, the tariff is likely to increase to reflect the full generation cost,” he noted. “But for now, Ndi Enugu, especially Band A customers, will enjoy the new reduced tariff from August 1, 2025.”

This statement is a reminder that while consumers can expect some relief now, future changes at the national level could still influence local electricity pricing.
EERC also revealed that it has rolled out a robust monitoring and compliance framework to ensure that MainPower delivers on its service obligations. The aim is to guarantee that customers get value for money and are not made to pay for electricity they did not receive.
Under the new guidelines:

• MainPower is required to publish a daily, rolling seven-day average of electricity supply on all Band A feeders on its website by 9:00 AM the following day.
• If a Band A feeder fails to deliver the committed hours of supply for two consecutive days, MainPower must report the issue to EERC within 24 hours.
• If poor service continues for seven consecutive days, that particular feeder will be automatically downgraded to a lower band, with immediate tariff adjustments to reflect the actual supply level.

This level of oversight is designed to instill accountability and prevent situations where customers are billed for services not rendered, a common grievance among electricity users across the country.
For Enugu residents, especially those under Band A, the reduced tariff could translate to more manageable electricity bills and better budgeting for both households and small businesses. Given that energy costs have a ripple effect on the cost of living and doing business, this reduction could lead to:

• Lower operational costs for small and medium enterprises (SMEs)
• Increased productivity as businesses enjoy more reliable electricity
• Less reliance on expensive alternatives like generators and diesel
• Improved investor confidence in the Enugu electricity market

However, the challenge remains in ensuring consistent power delivery, especially in a system that has long struggled with infrastructural and logistical shortcomings.
The decision by EERC is not just a win for Enugu; it’s a sign of the growing decentralization of electricity regulation in Nigeria. With states now empowered to oversee their own power sectors, we may begin to see more innovative policies tailored to local realities.
According to energy analysts, allowing state electricity regulators like EERC to manage local markets could:

• Encourage private sector participation and investment
• Increase competition among distribution companies
• Improve responsiveness to consumer complaints
• Promote infrastructure development targeted at underserved areas

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The announcement of a tariff cut by EERC is a milestone in Nigeria’s electricity reform journey, and it puts Enugu State at the forefront of subnational electricity regulation. By aligning tariffs with actual costs while considering federal subsidies, EERC is striking a balance between affordability and sustainability. However, the effectiveness of this policy will depend largely on enforcement. If MainPower delivers on its service commitments, Enugu residents may indeed enjoy the dividends of power sector reforms. But if service falters, EERC must remain firm in enforcing penalties and protecting consumers’ interests. One thing is clear: this is a step in the right direction, and if properly implemented, could serve as a model for other states across Nigeria.

By PrimeLineInfo