Power System Operator Steps In to Resolve Enugu Electricity Tariff Dispute

The Power System Operator (PSO), a key division of the Transmission Company of Nigeria (TCN), has stepped in to mediate the ongoing electricity tariff crisis in Enugu State, amid growing tensions between the Enugu Electricity Distribution Company (EEDC) and electricity consumers in the region.

The intervention follows weeks of heated complaints from residents, business owners, and civil society groups over what they described as “unjustified and exorbitant” tariff increases introduced by EEDC. The new rates, which took effect in July, have reportedly led to sharp increases in monthly bills for both residential and commercial customers.

Speaking at a press briefing in Enugu on Tuesday, the General Manager of the Power System Operator, Engr. Sule Abdulaziz, said the decision to intervene was informed by the need to prevent a breakdown in service delivery and restore trust between stakeholders in the power sector.

“Our role is to ensure stability and efficiency in Nigeria’s electricity supply chain. In situations where disputes over tariffs threaten supply reliability or customer relations, it is imperative that the Power System Operator steps in to facilitate dialogue and work towards a fair resolution,” Abdulaziz said.

He explained that the PSO’s mediation process will involve consultations with EEDC management, the Nigerian Electricity Regulatory Commission (NERC), state government officials, consumer rights groups, and business associations. The goal, he said, is to address legitimate customer concerns while ensuring the sustainability of EEDC’s operations.

According to Abdulaziz, the intervention will focus on three key areas — reviewing the methodology used in implementing the tariff hike, assessing the accuracy of billing systems (especially for unmetered customers), and proposing measures to cushion the impact of higher tariffs on vulnerable households and small businesses.

The PSO chief stressed that while electricity tariffs in Nigeria are regulated by NERC and influenced by market realities, including exchange rates and gas prices, distribution companies must still adhere to principles of fairness, transparency, and adequate service delivery.

“Customers will be more willing to pay when they feel they are being billed accurately and receiving the quality of service they are promised. Tariff adjustments must go hand in hand with visible service improvements,” he noted.

Many residents in Enugu have complained of erratic power supply despite the higher rates. Some business owners say they are being forced to rely more on diesel generators, which has increased their operating costs.

Mrs. Chinyere Nwokolo, a small-scale frozen foods seller at Ogbete Main Market, said her monthly electricity bill jumped from about ₦12,000 to over ₦28,000 in July, yet her supply hours have remained largely unchanged. “We were told higher tariffs would bring better service, but so far nothing has changed. It is becoming difficult to cope,” she lamented.

Consumer rights advocates in the state have also accused EEDC of implementing the new tariff regime without sufficient public sensitisation. They argue that customers deserve clear explanations on why rates are rising and how the additional revenue will be used to improve infrastructure.

In response, EEDC officials maintain that the tariff review was in line with NERC’s Multi-Year Tariff Order (MYTO) framework, which allows for periodic adjustments to reflect inflation, exchange rate fluctuations, and the cost of generation. They insist that the increases are necessary to cover operational expenses and fund network upgrades.

However, the PSO says it is aware of the growing mistrust and will work to bridge the communication gap between the utility and its customers. Abdulaziz disclosed that the mediation team will submit its first set of recommendations within four weeks, after which all parties will decide on next steps.

He further warned that prolonged disputes in the power sector could undermine national electricity supply stability, as distribution companies play a critical role in the market’s liquidity. “If customers refuse to pay their bills due to perceived unfairness, it affects revenue collection, which in turn affects payments to generation companies and gas suppliers. The entire chain suffers,” he said.

Enugu State Governor, Peter Mbah, has welcomed the PSO’s intervention, expressing optimism that the process will produce a balanced solution. “Electricity is vital to our economic transformation agenda. We cannot allow disagreements over tariffs to derail the progress we are making in industrialisation and investment attraction,” Mbah said in a statement.

Some industry observers believe the crisis in Enugu mirrors wider challenges in Nigeria’s power sector, where utilities often struggle to balance the need for cost-reflective tariffs with consumer resistance in the face of unreliable supply.

Energy policy analyst, Dr. Anthony Olisa, noted that resolving the matter will require both technical and social considerations. “It’s not just about numbers on paper; it’s about public trust, fairness, and consistent service delivery. Without these, tariff reforms will always face resistance,” he said.

The PSO has pledged to remain neutral throughout the mediation process and ensure that the final resolution aligns with both regulatory guidelines and the public interest.

For now, electricity consumers in Enugu are watching closely to see if the intervention will bring immediate relief to their pockets and more stable power supply to their homes and businesses.