The Nigerian Electricity Regulatory Commission (NERC) has ruled that the Enugu Electricity Regulatory Commission (EERC) lacks the authority to set electricity tariffs for power generated and transmitted from the national grid.
The decision follows EERC’s announcement on July 20, 2025, to reduce Band A tariffs in Enugu State from N209/kWh to N160/kWh, effective August 1, prompting concerns from power sector stakeholders.
NERC, in a statement on Thursday, July 24, clarified that while the 2023 Electricity Act grants states regulatory powers over intrastate electricity markets, this does not extend to pricing power from the national grid, which remains under federal jurisdiction.
“States do not have jurisdiction over the national grid or power stations operating under federal licenses,” NERC stated, emphasizing that EERC’s tariff cut risks financial instability in the Nigerian Electricity Supply Industry (NESI).
The EERC defended its decision, with Commissioner Reuben Okoye asserting that the tariff reduction was based on a review of MainPower Electricity Distribution Limited’s costs and ensures full recovery of efficient costs.
“We did not tamper with the cost of power generation,” Okoye said, adding that the tariff applies only to Enugu State.
However, NERC warned that such reductions could lead to subsidy demands or financial strain, noting that the national grid’s wholesale costs must be reflected in tariffs or subsidized by states.
The Association of Power Generation Companies and the Association of Nigerian Electricity Distributors echoed NERC’s concerns, with CEO Joy Ogaji stating, “States cannot unilaterally fix tariffs for power they do not produce.”
NERC is engaging with EERC to address the tariff order’s implications, stressing its commitment to ensuring cost recovery and stability in the national electricity market.
