The Federal Government has stepped in to calm the ongoing clash between state governments and electricity distribution companies (Discos) over who has the final say on electricity tariffs.

The Nigerian Electricity Regulatory Commission (NERC) has invited state energy commissioners, Discos, and other key players in the power sector to a meeting in Lagos next week aimed at finding common ground.

The dispute began after Enugu State’s regulator ordered a reduction in Band A tariffs from N209 per kilowatt-hour to N160. Distribution companies immediately pushed back, saying states have no right to fix prices on electricity coming from the national grid. They warned that such cuts would lead to billion-naira losses every month and could cripple operations.

According to the Discos, states can only set tariffs for power they generate and distribute locally—not for supply drawn from the federal grid. They argue that selling electricity below cost will eventually collapse the industry.

State officials disagree, insisting that the amended Electricity Act of 2023 gives them full authority to regulate their own markets, including tariff design. The Forum of Commissioners for Power and Energy in Nigeria said their priority is improving electricity access and reforming the sector, not fighting industry operators.

The standoff has already caused confusion in Enugu, where customers faced supply cuts and billing disputes. While the Disco reverted to old prices, the state regulator has warned of sanctions for overcharging.

NERC has previously stated that any state that wants to reduce tariffs must cover the shortfall through subsidies, but some states argue they are acting fully within the law.

The Lagos meeting will determine whether the new state regulatory powers can work alongside federal oversight, or if the clash will deepen an already fragile electricity market.