On Friday, July 25, 2025, the Nigerian Electricity Regulatory Commission (NERC) declared that the Enugu Electricity Regulatory Commission (EERC) lacks authority to set electricity tariffs for power sourced from the national grid, as stated on NERC’s website. This follows EERC’s July 20 announcement reducing Band A tariffs from ₦209.5/kWh to ₦160.4/kWh, effective August 1, 2025, for Mainpower Electricity Distribution Ltd. (MEDL), which relies entirely on national grid supply. NERC emphasized that while the 2023 Electricity Act allows states to regulate intrastate electricity markets, this does not extend to the national grid or federally licensed power stations. States must incorporate wholesale generation and transmission costs into tariffs or provide subsidies to cover shortfalls to avoid destabilizing the Nigeria Electricity Supply Industry (NESI).
NERC noted stakeholder concerns over EERC’s tariff order, which reduced the average generation tariff from ₦112.60/kWh to ₦45.75/kWh, creating a ₦66.85/kWh subsidy gap. This, along with freezing tariffs for other bands, risks financial strain on NESI, already burdened with ₦5.2 trillion in unpaid shortfalls, according to the Association of Nigerian Electricity Distributors (ANED). NERC, citing Section 34(1) of the Electricity Act, stressed its mandate to ensure market stability and cost recovery, and is engaging EERC to address misinterpretations. The commission warned that unilateral tariff cuts could lead to liquidity crises, affecting power supply nationwide, and reaffirmed its commitment to a financially sustainable electricity market in line with federal laws.
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