The Enugu Electricity Regulatory Commission (EERC) issued a tariff order on July 18 that reduced electricity costs to N160 per kilowatt‑hour. This decision has been challenged by the Mainpower Electricity Distribution Company and the Association of Nigerian Electricity Distributors (ANED), who argue that the order was not based on current realities and failed to follow due process.
Mainpower initially opposed the tariff, contending that its input was not sought before the EERC set the new rate. The company subsequently filed a petition with the commission, prompting a public hearing on Thursday at the International Conference Centre in Enugu. The hearing gathered key stakeholders in the state’s power sector, including ANED representatives, consumer advocacy groups, and regulatory officials.
During the hearing, EERC Chief Executive Officer Mr. Chijioke Okonkwo explained the historical and regulatory context that shaped the current tariff structure. He described the N160 per kilowatt‑hour rate as “prudently determined” after examining various cost parameters, such as customer numbers and distribution efficiency. Nonetheless, Mainpower maintained that the EERC ignored its own business rules and used incorrect parameters, thereby violating due process.
ANED also warned against setting tariffs below the actual cost of energy supplied to the state. Its Chief Executive Officer, Barr. Sunday Oduntan, noted that while the Electricity Act 2023 permits states to regulate electricity within their borders, they must still respect market realities when sourcing power from the national grid. He cautioned that tariffs set below cost could reintroduce the burden of subsidies, asking, “Who pays the shortfall?” if the regulated price is lower than the cost price.
The EERC has pledged to thoroughly review the submissions made at the public hearing before issuing a final decision on the petition. The commission aims to balance the interests of operators and consumers through fair, transparent, and evidence‑based regulation, ensuring that operators receive appropriate compensation while consumers obtain value for every naira paid. The outcome of this review will be pivotal in shaping the future of electricity pricing in Enugu State.
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