Enugu Slashes Band A Power Tariff to N160/kWh in New Electricity Regulation

The Enugu State Government has approved a substantial reduction in electricity tariffs for Band A consumers, setting a new rate of ₦160 per kilowatt-hour (kWh) effective from August 1, 2025. This development comes under the administration of the Enugu State Electricity Regulatory Commission (EERC), which has begun to exercise its mandate under the state’s new electricity law.

Previously, Band A customers were charged ₦209/kWh, a rate considered unaffordable by many residents and small business operators in the state. The new tariff, which represents a 23.4% decrease, is part of a broader initiative by the state government to provide affordable, sustainable, and reliable power to its citizens. This move makes Enugu one of the first states in Nigeria to officially restructure electricity tariffs following the constitutional amendment and enactment of the Electricity Act 2023, which empowers sub-national entities to manage their own electricity markets.

According to the Chairman of EERC, Chijioke Okonkwo, the revised tariff is reflective of both cost realities and consumer protection. He explained that after factoring in the federal government’s subsidy on generation—which is currently pegged at ₦45 out of the ₦112/kWh generation cost—the commission arrived at an average cost-reflective rate of ₦94/kWh. However, due to Enugu’s commitment to affordability, Band A consumers will now pay ₦160/kWh, while other bands (B through E) will retain their current rates.

Okonkwo noted that the Band A category includes customers who enjoy more than 20 hours of electricity daily. The new tariff ensures that they continue to receive this level of service while enabling MainPower Electricity Distribution Limited, the state’s primary distribution operator, to maintain efficient operations. “Our goal is to make electricity a true enabler of growth and not a burden,” he said.

The tariff revision also comes with strict compliance measures. EERC has implemented a monitoring mechanism requiring MainPower to report the average daily electricity supply for each Band A feeder. Should any feeder fail to deliver the required hours of service for more than two consecutive days, MainPower is mandated to inform the commission. If the situation persists for seven consecutive days, the affected feeder will be downgraded automatically to the appropriate service band, with corresponding changes in tariffs.

This regulatory provision aims to ensure that consumers only pay for the level of service they receive, thereby preventing exploitation and forcing the distribution company to remain accountable.

Reactions from residents and businesses have been largely positive. Many small business owners in Enugu’s capital, especially those reliant on constant electricity for operations, say the new rate is a welcome relief. “We’ve been battling high costs due to the old tariff,” said Ifeanyi Okorie, a printer in Independence Layout. “This new rate will help us save money and reinvest in our operations.”

Others applauded the state’s decision to take charge of its electricity sector, noting that decentralized regulation could drive improvements in service delivery. “When governance is brought closer to the people, things work better,” said Ngozi Uche, a market trader in Ogbete. “Enugu is leading by example.”

Industry experts have also hailed the decision as a smart balancing act between investor confidence and consumer protection. By retaining the ability to recover costs while introducing service-based regulations, the state is said to be positioning itself for long-term stability in its electricity market.

However, some analysts have raised concerns about the sustainability of the current subsidy structure. With the federal government absorbing a significant portion of generation costs, questions remain about what might happen if those subsidies are withdrawn. “We must begin to ask what the long-term plan is,” said energy consultant Michael Iroanya. “Will the state be able to continue offering these rates if federal subsidies disappear?”

MainPower, on its part, has committed to upholding the terms of the new regulation. A spokesperson for the company said they are investing in infrastructure upgrades to ensure consistent supply to Band A feeders and prevent potential downgrades. “We are aligning our operations with the expectations set by the EERC,” the spokesperson noted.

Beyond tariff adjustments, the state government is said to be exploring partnerships to expand generation capacity and diversify its power mix, including solar and mini-grid solutions. These efforts are aimed at reducing dependency on the national grid and enhancing power stability within the state.

Enugu’s decision to cut tariffs while introducing performance-based measures is being watched closely by other states considering similar regulatory autonomy. As the first sub-national government to fully implement its electricity regulation authority, Enugu’s approach could set a precedent for others seeking to address local power challenges through independent oversight.

 

For now, consumers in Band A can expect some relief in their electricity bills starting August, a development that not only lightens the financial burden on households and businesses but also signals a shift toward more accountable and people-focused electricity management in Nigeria.