The Federal Government has intervened in the deepening rift between state governments and electricity distribution companies (Discos) over tariff-setting powers, summoning all stakeholders to a high-level meeting next week in Lagos through the Nigerian Electricity Regulatory Commission (NERC).
The impasse stems from divergent interpretations of the Electricity Act, 2023 (Amended). State energy commissioners, under the Forum of Commissioners for Power and Energy in Nigeria (FOCPEN), maintain that the Act empowers them to regulate electricity distribution in their jurisdictions. Conversely, the Association of Nigerian Electricity Distributors (ANED) insists that states cannot set prices on cross-border electricity sourced from the national grid.
The dispute escalated in July when the Enugu Electricity Regulatory Commission (EERC) reduced Band A tariffs from N209/kWh to N160/kWh, directing MainPower Electricity Distribution Limited to implement the cut from August 1, 2025. MainPower claimed that enforcing the cut would cause monthly losses exceeding N1 billion, prompting a 50 per cent reduction in supply and widespread blackouts.
Speaking on Thursday, ANED CEO, Sunday Oduntan, warned that attempts by states to control cross-border tariffs could destabilise the sector. “States can generate, transmit, and distribute electricity within their borders and regulate those tariffs. However, they do not have authority over electricity sourced from outside their territory. Selling below cost will destroy the power sector,” he said.
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State regulators have defended their actions, clarifying that the new Enugu tariff only covers distribution and does not interfere with generation or transmission costs. Joe Aneke, Special Adviser to the Enugu Governor on Power, explained that the adjustments are based on accurate distribution figures and consumer data, ensuring market stability.
NERC has cautioned that any state-driven tariff reductions must account for wholesale generation, transmission, and legacy costs to avoid distorting the market. MainPower, however, petitioned the EERC, claiming the July 18 tariff order did not comply with the commission’s regulations and the cost review methodology.
The NERC spokesperson, Dr Usman Abba-Arabi, confirmed that the upcoming meeting will bring together state regulatory commissions, Discos, and other industry stakeholders to discuss solutions behind closed doors.
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