The Enugu Electricity Regulatory Commission (EERC) sparked the row by slashing Band A tariffs from N209 to N160/kWh…
Amid Nigeria’s shifting electricity regulation landscape, states are increasingly announcing plans to cut tariffs, triggering fierce opposition from power generation and distribution companies.
The Enugu Electricity Regulatory Commission (EERC) sparked the row by slashing Band A tariffs from N209 to N160/kWh, effective August 1. While EERC insists the move is “cost-reflective” and based on federal subsidies, the Association of Power Generation Companies warned it risks destabilising the fragile power sector.
“This tariff issued by EERC has set a precedent… There are many burning questions about dealing with obligations and liabilities,” said Joy Ogaji, GenCos spokesperson, who noted over N5tn is owed to power producers.
Despite this, other states—including Ondo, Plateau, Lagos, and Kogi—signaled intentions to follow Enugu’s lead. “We will bring down electricity tariff for our people,” said Plateau’s Electricity Commission Chair, Bagudu Hirse.
However, Discos warned of funding gaps and unrealistic pricing. “Electricity is paid for everywhere in the world… Who will pay the shortfall?” an unnamed Disco official asked.
Defending the tariff cut, EERC Chairman, Chijioke Okonkwo, said: “The current tariff… has been heavily subsidised at the generation end by the Federal Government.”
Experts questioned the sustainability. “I don’t believe they have the right data… Enugu must consider liabilities with autonomy,” said energy analyst Tayo Adegbenle.
As debate intensifies, the Nigerian Electricity Regulatory Commission and national grid operators are expected to weigh in, with the future of Nigeria’s decentralised power framework hanging in the balance.