OGEJOURNAL Menu

Mainpower Petitions EERC Over Electricity Tariff Reduction

Mainpower Electricity Distribution Company has taken its battle against a new electricity tariff cut to the Enugu Electricity Regulatory Commission (EERC), filing a petition to halt the order.

The complaint, submitted on August 14, 2025, challenges the tariff order that came into force on August 1. Under the directive, Band A customers saw their tariff reduced from N209/kWh to N160.40/kWh, while Bands B and C were frozen. The decision, although welcomed by consumers, has faced backlash from the Nigerian Electricity Regulatory Commission (NERC), generation firms, distribution companies, and the Ministry of Power, all of whom warned it could destabilize the sector financially.

Mainpower insists the Commission issued the order without final agreement on critical cost components, despite multiple meetings in July meant to resolve the matter. The company argues that the regulator failed to follow its own tariff-setting rules, which require either mutual consensus or a formal hearing when disputes remain.

Dr. Ernest Mupwaya, Mainpower’s Managing Director, signed the petition, cautioning that the reduction could result in monthly revenue deficits of N1.3–N1.5 billion, adding up to nearly N7 billion in just five months. He also warned that the losses would undermine Mainpower’s ability to meet payment obligations to the Nigerian Bulk Electricity Trading Plc (NBET).

The company further noted that the tariff slash could disrupt power supply, stall a N33.2 billion capital investment program, and slow down the rollout of 350,000 smart meters, leaving almost half of its customers unmetered by early 2026. It also highlighted risks of more outages, frustrated customers turning to self-generation, investor pullback, and possible labour unrest if payroll and vendor payments are affected.

Mainpower is asking the EERC to suspend the tariff order until the case is fully resolved and to consider alternative rates of N206.80/kWh or N194.54/kWh instead.

This dispute comes only months after the EERC officially took over full regulation of the Enugu electricity market, following a handover of authority from NERC.