The Enugu Example: More states to slash Electricity Tariffs

Following the cut down in the amount of money being paid for electricity consumption in Enugu state, not less than seven states have indicated interest to copy the Enugu example.

Recall that Governor Peter Mbah on assumption of office explored the Electricity Act 2023 to establish a state owned electricity regulatory agency which brought about the lower tariff on electricity consumption in the state that will take off from August 1 2025.

But the exploitative electricity generation and distribution companies are angry with the Enugu development and have been making efforts to retain their high tariff on the Nigerian masses.

Nevertheless, more states with independent electricity regulatory powers indicated their interest in slashing tariffs like their Enugu counterpart, MainPower Electricity Distribution Limited, that revised the electricity cost for Band A customers from N209 per kilowatt-hour to N160/kWh, effective August 1, 2025.

The power generation and distribution companies claim that the move may cripple the sector, as the Gencos declared that the industry is indebted to power producers to the tune of over five trillion naira.

As the Gencos and Discos attacked Enugu State over its move on Monday, the state insisted on its decision, stressing that it followed all required processes to arrive at the new N160/kWh power tariff for Band A consumers.

The power firms kicked against the Enugu Electricity Regulatory Commission’s planned cut of Band A electricity tariffs, warning that the decision relies on questionable subsidy assumptions and poses serious risks to the country’s fragile power sector.

In a statement issued on Monday by the Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, the Gencos stated that the tariff revision sets a precedent for all other states and fails to reflect the true cost of electricity generation.

Recently, the Nigerian Electricity Regulatory Commission disclosed that seven states now control their electricity markets in accordance with the Electricity Act 2023. The states are Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi. Other states, including Lagos, Ogun, Niger, and Plateau, are expected to complete their transitions between now and September.