The Enugu Electricity Regulatory Commission (EERC) reacted to a public Notice by the National Electricity Regulatory Commission (NERC) on the recent tariff cuts implemented in the state, saying the Nigerian constitution says only states can make laws on electricity distribution.
EERC said the public notice issued by NERC last week, Thursday, borders on a misconception and misplaced focus arising from a poor understanding by some energy stakeholders of the fundamental changes introduced into the power sector through the introduction of the 2023 constitution amendment, passage of the Electricity Act 2023, and emergence of the sub-national electricity market.
The EERC clarified the situation in a rejoinder it published on its website on Monday, saying that the NERC public notice was to secure an exclusive right to determine end-use tariffs in the Nigerian electricity supply industry.
The state-level regulatory body furthermore questioned the fuss against having multiple tariff regimes in a fully decentralized electricity supply industry.
It also added that the NERC, in its public notice, tried to make a case for constitutional backing that would give the National Assembly and the House of Assembly the power to make laws on the power sector. The NERC left out that the National Assembly is not authorized to make laws on the matter of electricity distribution.
Finally, EERC pointed out that NERC’s declaration that states must holistically incorporate the wholesale cost of grid supply to their states without any qualification or deviation in their design of tariffs for end-use customers is a misapplication of NERC’s authority over the national grid.
Early last week, the EERC ordered a tariff cut for band A users in Enugu State, slashing electricity costs from N209 Kwh to N160 Kwh, effective August 1st. The tariff cuts sparked a war of words between the electricity regulatory commission and distribution companies, with the latest being the NERC.
