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Tariff War Hits Boiling Point; FG Steps Up To Save Nigeria’s Power Sector
The ongoing standoff between state governments and electricity distribution companies (Discos) over tariff-setting authority has prompted the Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), to summon all stakeholders for a meeting next week in Lagos.....KINDLY READ THE FULL STORY HERE▶
State energy commissioners, organized under the Forum of Commissioners for Power and Energy in Nigeria (FOCPEN), have maintained that the Electricity Act 2023 (Amended) empowers states to regulate their local power markets. However, Discos, represented by the Association of Nigerian Electricity Distributors (ANED), insist that while states may regulate their markets, they cannot determine prices for electricity drawn from the national grid, creating a deadlock over tariff authority.
The dispute escalated when the Enugu Electricity Regulatory Commission (EERC) reduced the Band A tariff from N209/kWh to N160/kWh, effective August 1, 2025. MainPower Electricity Distribution Limited subsequently reduced power supply by 50% due to projected losses exceeding N1 billion, prompting widespread blackouts. ANED CEO Sunday Oduntan warned that state attempts to set cross-border electricity tariffs risk destabilizing the sector. He emphasized that states can only fix tariffs for power they generate, transmit, and distribute within their borders, not for energy sourced from the national grid.
FOCPEN, however, stressed its commitment to sectoral reforms, insisting it seeks solutions rather than conflict. Prince Eka Williams, FOCPEN Chairman and Cross River State Commissioner for Power and Renewable Energy, said the forum is focused on electrifying every Nigerian home and will work collaboratively with stakeholders to address sector challenges.
Following public complaints, MainPower restored electricity in Enugu at the old tariff of N209/kWh, rejecting the EERC’s directive. In response, the commission accused the Disco of violating the tariff order and threatened sanctions. NERC had earlier advised that states wishing to reduce tariffs must cover any shortfall to avoid market disruption.
Enugu’s Special Adviser on Power, Joe Aneke, defended the state’s actions, explaining that the tariff adjustment pertained only to distribution costs and did not alter generation or transmission fees. He also challenged the figures presented by MainPower, stating that the alleged N9 billion claim for cost recovery was inaccurate.
MainPower, meanwhile, petitioned the EERC, arguing that the tariff order did not comply with Regulation No. EERC/R004, emphasizing that tariff determinations must follow agreed cost reviews and contractual pricing methodologies.
Dr. Usman Abba-Arabi, NERC’s General Manager of Public Affairs, confirmed that the upcoming meeting will bring together state regulatory commissions, Discos, and other electricity industry stakeholders to deliberate on these issues and propose actionable solutions, noting that the discussions will be conducted without press presence.
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