Electricity just got cheaper for residents in Enugu State, and the power companies won’t be losing a dime.

The Enugu State Electricity Regulatory Commission (EERC) has announced a major tariff cut for Band A customers, reducing the rate from ₦209 to ₦160 per kilowatt-hour, effective August 1, 2025. The move, which has sparked pushback from some generation companies (GenCos), is now being defended by the Commission as a fair, data-backed decision.

“We didn’t tamper with the cost of generation or transmission,” said EERC Commissioner for Electricity Market Operations, Barr. Reuben Okoye. “All those costs were fully accounted for. What we’ve done is simple — we made sure residents aren’t paying more than they should.”

The new tariff order applies only to MainPower Electricity Distribution Limited, the Enugu-based operator responsible for power distribution in the state. Other customer bands will maintain their current rates, as the new pricing affects only Band A.

EERC says its decision came after a thorough review of MainPower’s submitted costs, and found no justification for keeping the Band A tariff at ₦209/kWh.

According to the Commission, the cost of delivering power from the national grid to MainPower, including generation and transmission, was adopted in full. “There’s been no cut to GenCos’ earnings,” Okoye stressed. “MainPower will still recover all its efficient costs and make a reasonable return.”

The regulator also addressed concerns about potential under-recovery by GenCos, calling them unfounded. “Until Nigeria adopts a truly cost-reflective tariff system nationwide, no sub-national utility can overpay or underpay anyone. This is a fair recalibration, not a shortchange.”

EERC believes expanding Band A customer coverage will eventually reduce electricity delivery costs, as more users share the burden.

To GenCos seeking better returns, the Commission had a message: bring your business directly to Enugu. “If you’re ready for commercial arrangements based on willing-buyer, willing-seller principles, come set up power plants here. We’ll approve your PPA and reflect it in the tariff,” Okoye added.

The Commission says it’s open to dialogue with any stakeholders who feel the order is unfair, but for now, it’s standing by the decision.

“This is about fairness, accuracy, and sustainability. And most importantly, it’s about protecting consumers while ensuring the industry stays viable.”