The Enugu Electricity Regulatory Commission’s (EERC) recent tariff order has been met with opposition from the Mainpower Electricity Distribution Company and the Association of Nigerian Electricity Distributors (ANED). The order, issued on July 18, reduced electricity costs to N160 per kilowatt-hour. However, the companies argue that the order did not follow due process and was not based on current realities.

The Mainpower Electricity Distribution Company had initially opposed the tariff order, stating that its input was not sought before the EERC arrived at the new tariff. The company subsequently filed a petition with the EERC, which led to a public hearing being held on Thursday at the International Conference Centre in Enugu. The hearing brought together key stakeholders in the state’s power sector, including representatives of ANED, consumer advocacy groups, and regulatory officials.

At the hearing, the Chief Executive Officer of the EERC, Mr. Chijioke Okonkwo, explained the historical and regulatory context that led to the current tariff structure. He noted that the N160 per kilowatt-hour tariff was “prudently determined” after examining various cost parameters, including customer numbers and distribution efficiency. However, MainPower argued that the EERC did not follow due process in issuing the tariff order, ignoring its own business rules and using incorrect parameters.

ANED also cautioned against setting tariffs below the actual cost of energy supplied to the state. The company’s Chief Executive Officer, Barr. Sunday Oduntan, noted that while the Electricity Act 2023 allows states to regulate electricity within their borders, they must still respect market realities when sourcing power from the national grid. He warned that setting tariffs below cost could reintroduce the burden of subsidies, asking “who pays the shortfall” if the cost price is higher than the regulated price.

The EERC has stated that it will thoroughly review the submissions made at the public hearing before making a final decision on the petition. The Commission’s goal is to balance the interests of both operators and consumers through fair, transparent, and evidence-based regulation. As the regulatory body, the EERC aims to ensure that operators receive fair value for their services while consumers get commensurate value for every naira they pay. The outcome of the review will be crucial in determining the future of electricity pricing in Enugu State.