More states have announced plans to reduce electricity tariffs in their jurisdictions after the Enugu Electricity Regulatory Commission issued a new tariff order to MainPower Electricity Distribution Limited.
The order, as we have learnt, revised the electricity cost for Band A customers from N209 per kilowatt-hour to N160/kWh, effective August 1, 2025.
This was, however, vehemently opposed by power generation and distribution companies, who claimed that the move may cripple the sector, as the Gencos declared that the industry is indebted to power producers to the tune of over N5tn.
As the Gencos and Discos attacked Enugu State over its move on Monday, the state insisted on its decision, stressing that it followed all required processes to arrive at the new N160/kWh power tariff for Band A consumers.
The power firms kicked against the Enugu Electricity Regulatory Commission’s planned cut of Band A electricity tariffs, warning that the decision relies on questionable subsidy assumptions and poses serious risks to the country’s fragile power sector.
In a statement issued on Monday by the Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, the Gencos stated that the tariff revision sets a precedent for all other states and fails to reflect the true cost of electricity generation.
However, still on Monday, more states with independent electricity regulatory powers indicated their interest in slashing tariffs like their Enugu counterpart.
Recently, the Nigerian Electricity Regulatory Commission disclosed that seven states now control their electricity markets in accordance with the Electricity Act 2023. The states are Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi. Other states, including Lagos, Ogun, Niger, and Plateau, are expected to complete their transitions between now and September.
Speaking on why they plan to cut tariffs in their jurisdictions, the states said the motive was to make life better for the masses.
Ondo and Plateau states declared that they have plans to slash tariffs. Lagos said it would soon announce its tariff plans for Lagosians. However, Ekiti insisted on working with the current Multi-Year-Tariff Order of the Nigerian Electricity Regulatory Commission for the time being.
However, the Discos, who operate in these states, warned that any state planning to cut tariffs should be ready to pay the shortfall without any delay, saying they should not put such burdens on the Federal Government, which has yet to pay the N4tn owed to the Gencos.
