Energy commissioners from Nigeria’s 36 states on Wednesday reiterated their readiness to engage electricity distribution companies (DisCos) in negotiations to arrive at tariffs that are fair, cost‑reflective, and not punitive for residents.....KINDLY READ THE FULL STORY HERE▶

This stance comes in the wake of the recent decision by the Enugu Electricity Regulatory Commission (EERC) to slash the Band A electricity tariff from ₦209/kWh to ₦160/kWh— a move that has drawn stiff resistance from both power generation and distribution companies.

The DisCos, however, have outrightly rejected any negotiations with state governments on tariff matters, warning that such interventions could destabilize the power sector if allowed to continue.
Meanwhile, the EERC has stood firm, defending its decision and maintaining that it would not bow to pressure from operators, while several states continue to justify their push to regulate electricity markets within their jurisdictions.

According to the Nigerian Electricity Regulatory Commission, seven states—Enugu, Ondo, Ekiti, Imo, Oyo, Edo, and Kogi—have formally taken control of their electricity markets under the Electricity Act 2023. Lagos, Ogun, Niger, and Plateau are expected to complete their transition by September.

Speaking with The PUNCH on Wednesday, Prince Eka Williams, Chairman of the Forum of Commissioners of Power and Energy in Nigeria (and Cross River State’s Commissioner of Power and Renewable Energy), explained that while some states may be able to subsidize electricity for their citizens, the overriding goal of state governments is to guarantee reliable power supply.

Williams emphasized that the Electricity Act 2023 empowers state regulators to set and enforce tariffs within their markets:

“Each State Electricity Regulator is uniquely positioned to determine and implement tariffs that are fair to consumers while attracting investments, depending on their local market dynamics, licensee cost structures, and consumer needs.”

Asked whether state governments are ready to bear the cost of subsidies, as suggested by the Minister of Power in reaction to Enugu’s tariff cut, Williams noted:

“It’s not something I can agree or disagree with outright. The sector is being tested, and we are learning through experience. There’s no one‑size‑fits‑all solution. What matters is that all stakeholders sit down and consider the unique circumstances of each state. Any governor who wishes can take up that responsibility.”

He added that the Minister’s comments should be seen as a call for deeper state involvement in shaping electricity policy:

“It’s an ongoing dialogue. It’s not something you can pin down yet; it requires extensive consultation.”

In a separate statement, the Forum of State Commissioners of Power and Energy dismissed fears expressed by generation companies, assuring that Enugu’s tariff cut would not harm revenue streams. The forum reaffirmed that all 36 states stand ready to engage DisCos operating within their territories.

However, DisCos told The PUNCH they would not negotiate with state governments, accusing them of undermining recent improvements in power generation.

Notably, Lagos, Ondo, and Plateau have also hinted at revisiting their tariff structures. Still, the EERC has defended its decision to adjust Band A tariffs effective August 1, saying its action followed due process.

Forum Chairman Williams and Secretary Omale Omale clarified that Enugu’s policy does not extend to the wholesale market where generation companies operate. They stressed that the EERC’s review was consistent with the Electricity Act 2023 and followed a thorough assessment of MainPower Electricity Distribution Company’s costs and regulatory asset base.

“The EERC carried out a rigorous review of MainPower’s tariff classifications and cost structures. Acting within its mandate, it set tariffs designed to be cost‑reflective and fair to both consumers and operators,” the forum stated.

The forum emphasized that the Enugu adjustment is state‑specific and not binding on others.

“Several states, including Ekiti and Ondo, have maintained existing MYTO tariffs,” it noted.

FOCPEN assured investors and industry stakeholders that states are not cutting tariffs arbitrarily or relying on unsustainable federal subsidies:

“On the contrary, we are calling for the removal of untargeted federal subsidies and pushing for cost‑reflective subnational and wholesale markets that attract investment and drive efficiency.”