NERC Warns Enugu Over Unauthorized ₦160/kWh Tariff Slash for Band A Customers
The Nigerian Electricity Regulatory Commission (NERC) has criticized the Enugu State Electricity Regulatory Commission (EERC) for unilaterally slashing electricity tariffs for Band A customers from ₦209/kWh to ₦160.4/kWh, warning that such actions could destabilize Nigeria’s national electricity market.
In a statement released Thursday night, NERC acknowledged that the 2023 Electricity Act grants states regulatory oversight within their jurisdictions. However, it clarified that state powers do not override national legislation especially when it concerns infrastructure and market mechanisms that operate across the country.
The Commission noted that EERC’s revised tariff was based on an unrealistic reduction in the average generation cost from ₦112.60 to ₦45.75 per kWh. The move, which assumes a ₦66.85 subsidy, violates market cost-recovery principles and risks creating widespread distortion in the national electricity supply chain.
“States do not have jurisdiction over the national grid and power plants established under federal laws,” NERC stated. “Tariff design must reflect full wholesale costs to maintain market stability.”
Citing Section 34(1) of the Electricity Act, NERC reaffirmed its legal duty to preserve the integrity of the national electricity market and ensure prudent resource utilization. It also reminded sub-national regulators like EERC of their shared responsibility to avoid decisions that could trigger a financial crisis in the power sector.
The Commission expressed concern over the confusion caused by EERC’s Tariff Order No. EERC/2025/003 and confirmed it is in active discussions with the Enugu regulator to address the implications of sourcing power from the national grid without adhering to national pricing standards.
While NERC reiterated support for the decentralized electricity model introduced by the 2023 Act, it emphasized that cost-reflective tariffs must remain the foundation of power sector reforms at both national and state levels.
“The electricity market must remain financially sustainable and compliant with the laws of the Federal Republic of Nigeria,” NERC concluded.
