The Enugu State Electricity Regulatory Commission maintained its position on the new N160 KWH electricity cost for Band A in the state, stepping down from the previous N209 KWH cost.
The Regulatory body maintained that the electricity generation cost was not tampered with while making the new directive, and the Mainpower distribution company has no justification for the previous price.
EERC reacted to a slight backlash from Generation companies (Gencos) in the state over its new order slashing electricity for Band A customers from N209 KWH to N165 KWH. Mainpower Energy, the leading Power distribution company in the state, received a tariff order effective from August 1 from EERC ordering the company to step down the electricity cost for Band A customers by N49.
Barrister Reuben Okoye, EERC’s Commissioner for Electricity Market Operations, issued a statement on Wednesday, maintaining their position and clarifying that power generation costs were not tampered with.
“The Commission is focused on developing a sub-national electricity market that is transparent, accountable, reliable and sustainable and therefore will review utility costs of service to achieve its mandate to the people of Enugu State.”
“The Order is for MainPower’s operation in Enugu State. It does not affect electricity services in other states, between states, or across the country.
“The cost of delivering electricity from the National Grid to MainPower via EEDC has been fully accommodated. We did not tamper with that cost in our tariff determination, but adopted it.
“Our Order ensures that MainPower recovers all its efficient costs and makes a reasonable return in providing electricity services to citizens of Enugu State.
“Considerations and reconsiderations of the MainPower tariff application and data still presents the same outcome that ensures full payment of invoices to all parties.” The statement read
EERC clarified further that a transparent audit of power generation costs was carried out before issuing the directive, and Gencos have no justification for keeping the price at N209.
“EERC has not removed a kobo from the generation and transmission costs of delivering power to Enugu State, but rather included the exact costs to ensure complete payment of MainPower’s portion of the Nigerian Bulk Electricity Trading (NBET) invoices. Also, MainPower’s share of EEDC’s debts arising from CBN’s interventions in the NESI was included in the tariff.
“EERC and MainPower also reviewed all the relevant data/information provided by MainPower for its tariff determination to ensure accuracy.
“We are willing to entertain evidence showing that our methodology, analysis, computation, and output are wrong. Some commentators’ total focus on reducing the Band A tariff is unfair to the Commission and to electricity consumers in Enugu State.” The statement added
The regulatory body additionally stressed the importance of factoring in migrating more customers to Band A. It explained that the general cost of delivering electricity is spread across larger customer numbers, which should also result in a reduced price of service delivery.
The Enugu Electricity Regulatory Commission (EERC), established under the 2023 Enugu State Electricity Law, regulates Enugu’s power sector. EERC oversees Generation companies (GENCOs) in Enugu State, with the Mainpower distribution company being the biggest.
EERC reduced Band A tariffs from ₦209 to ₦160/kWh, effective August 1, ensuring cost-reflective pricing. The regulatory body maintained that the power generation cost was priced in before the directive was given, dismissing all arguments against the new power cost in the state.
