More states are now planning to reduce electricity tariffs within their territories following a new directive from the Enugu Electricity Regulatory Commission (EERC), which slashed the Band-A electricity rate from N209 per kilowatt-hour to N160/kWh for Main-Power Electricity Distribution Limited, starting August 1, 2025. This move, however, sparked strong opposition from power generation and distribution companies. The Generation Companies (GenCos) warned that such actions could destabilize the power sector, pointing out that the industry already owes them over N5 trillion.
Despite the backlash on Monday from the GenCos and DisCos, Enugu State stood by its decision, stating that the new Band-A rate was reached after following all necessary procedures.
The power companies criticized EERC’s plan, arguing that the tariff reduction is based on unrealistic subsidy expectations and could threaten the already fragile electricity sector.
In a statement issued by Joy Ogaji, CEO of the Association of Power Generation Companies, the GenCos emphasized that the revised rate does not reflect the actual cost of power generation and could set a dangerous precedent for other states.
Nonetheless, several other states with independent electricity regulatory authorities have expressed interest in implementing similar tariff cuts.
Seven states—Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi—have already seized control of their electricity markets under the Electricity Act 2023, according to the Nigerian Electricity Regulatory Commission. By September, it is anticipated that Lagos, Ogun, Niger, and Plateau will have completed their transition.
The DisCos operating in these areas have issued a warning, however, that any state planning to reduce tariffs must be prepared to immediately fill the resulting financial gap, rather than shifting the burden to the Federal Government, which still owes the GenCos N4 trillion.
While keeping rates the same for Bands B through E, the EERC announced and confirmed the tariff reduction for Band-A customers in Enugu on Sunday. Main-Power Electricity Distribution Limited was the sole recipient of the new pricing directive.