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Tariff: EERC, SEECA, ANED, Mainpower lock horns over ₦160/kWh Order

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Enugu Electricity Regulatory Commission (EERC), on  Thursday held a public hearing on the petition filed by MainPower Electricity Distribution Limited, which is seeking a review of the Commission’s Tariff Order issued in July 2025.

The event, which took place at the International Conference Centre (pICC), Enugu, brought together major stakeholders in the state’s power sector, including representatives of the Association of Nigerian Electricity Distributors (ANED), consumer advocacy groups, and regulatory officials.

Speaking at the occasion, the Chief Executive Officer of the Enugu Electricity Regulatory Commission,  Chijioke Okonkwo, outlined the historical and regulatory context that led to the current tariff structure.

He recalled that following the enactment of the Electricity Act, 2023, which empowered states to regulate electricity generation, transmission, and distribution within their territories, Enugu State therefore established its own regulatory framework.

Okonkwo pointed out that  the Enugu State government first prepared a policy document which led to the passage of the Enugu State Electricity Law, specifically designed for the benefit of Enugu citizens. “Pursuant to that law, commissioners for the Enugu Electricity Regulatory Commission were appointed, enabling the state to formally seek regulatory transfer from the Nigerian Electricity Regulatory Commission (NERC).”

According to him, Enugu officially assumed full regulatory responsibility for electricity services on October 22, 2024, after a six-month transition period approved by NERC.

He explained that part of the transition process required the creation of MainPower Electricity Distribution Limited, a subsidiary that took over the assets, liabilities, and operations of the Enugu Electricity Distribution Company (EEDC) within the state.

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“We subsequently licensed MainPower and issued it a tariff order governing electricity operations in Enugu State,” Okonkwo said, pointing out, “That order, issued on July 18, 2025, and effective August 1, 2025, was the result of extensive assessment and fair consideration of the company’s assets and liabilities.”

He said the ₦160 per kilowatt-hour tariff was “prudently determined” after examining various cost parameters, including customer numbers and distribution efficiency.

“However, MainPower later petitioned against the order, expressing disagreement with some of the assumptions and parameters used,” he said. “We considered it inappropriate to amend the order unilaterally and instead opted for this public hearing in line with our business rules — to ensure transparency, fairness, and public participation.”

In his presentation, the Managing Director, Mainpower Electricity Distribution Limited.Dr. Ernest Mupwaya,  argued that the EERC did not follow due process in issuing the July 18, 2025 tariff order.

The company maintained that the Commission ignored its own business rules by releasing a tariff order without a bilateral agreement between both parties and by “cherrypicking numbers” that did not reflect operational realities.

“An independent audit firm, KPMG, reviewed the process and confirmed that the parameters used by EERC were wrong,” Mupwaya said.

“We urge the Commission to adopt the actual data presented to it, rather than assumptions, to ensure a fair and sustainable tariff framework.”

The firm claimed that the current ₦160/kWh tariff was inconsistent with prevailing costs in the national electricity market and was unsustainable for its operations.

Siding Mainpower that EERC’s was arbitrary, Barr. Sunday Oduntan, Chief Executive Officer of the Association of Nigerian Electricity Distributors (ANED), cautioned against setting tariffs below the actual cost of energy supplied to the state.

“In this industry, we are distributors, not generators,” Oduntan noted. “We buy electricity from those who produce it, and there is always a landing cost associated with that product.”

He explained that while the Electricity Act 2023 allows states to regulate electricity within their borders, they must still respect market realities when sourcing power from the national grid.

“Until Enugu begins generating its own electricity — for instance, from coal — it cannot fix arbitrary prices for a product that comes from outside its borders,” he said. “The cost must reflect the true landing cost, which the NERC currently calculates at about ₦209 per kilowatt-hour for Band A customers.”

Oduntan warned that setting tariffs below cost could reintroduce the burden of subsidies.

“If the cost price is higher than the regulated price, we must ask who pays the shortfall — are we going back to the era of subsidy?” he queried.

Touched by high electricity tariff, the South-East Electricity Consumers Association (SEECA), in its submission to the Commission, strongly opposed MainPower’s petition, insisting that the ₦160/kWh tariff should be retained.

In a memorandum signed by its Enugu State Chairperson, Patience Ifebuche Chukwu, SEECA argued that the EERC followed due process and provided fair hearing before issuing the tariff order.

“Records show that before the Tariff Order was made, a series of meetings and submissions were held between EERC and MainPower,” SEECA stated. “Fair hearing is not an automatic principle to be invoked at convenience. A party that had the opportunity to be heard cannot later claim denial.”

The association dismissed MainPower’s claim of ₦1.3 billion monthly losses, countering that electricity consumers had endured greater hardships due to erratic power supply, estimated billing, and poor service delivery.

“Consumers have suffered loss of lives, spoiled goods, and business closures. These losses far outweigh any purported loss claimed by the petitioner,” the group said, calling for the abolition of the controversial Band classification system, which it described as “discriminatory.”

SEECA recommended that if any review must be done, the tariff should not exceed ₦165/kWh.

On the way forward, the EERC said the submissions made at the public hearing would be thoroughly reviewed before any final decision is taken on the petition.

Mr. Okonkwo reaffirmed the Commission’s commitment to balancing the interests of both operators and consumers through fair, transparent, and evidence-based regulation.

“Our goal,” he said, “is to ensure that operators receive fair value for their services while consumers get commensurate value for every naira they pay. Whatever decisions we make will be guided by fairness, transparency, and sustainability.”

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Kidnappers kill seven-year-old boy after ransom demand

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A seven-year-old boy, Abdullahi Rabi’u, has been found dead hours after suspected kidnappers abducted him in the Majema area, along Ring Road in Jos North Local Council of Plateau State and demanded a N2.5million ransom.

The boy was reportedly abducted on Monday evening after being sent on an errand to a neighbour’s house.

Narrating the incident, his uncle, Sukairaj Danladi Me Gado, said Abdullahi delivered the message but failed to return home, prompting the family to search for him.

He said their efforts to locate the boy proved unsuccessful until Tuesday morning, when the family received a call from an unidentified number.

According to him, the caller demanded N2.5million as ransom and informed the family that the boy had been kidnapped.

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Me Gado said the family had agreed to pay the ransom in the hope of securing the child’s release.

However, their hopes were shattered later on Tuesday when they learnt that his body had been found in a narrow passage near their residence.

The discovery plunged the family and residents of the neighbourhood into mourning.

The grieving uncle expressed sorrow over the killing and alleged that the perpetrators might be familiar with the neighbourhood.

He called on security agencies to investigate the incident, apprehend those responsible and ensure they were brought to justice.

Efforts to obtain the reaction of the Plateau State Police Command were unsuccessful, as its spokesman, SP Alfred Alabo, did not respond to journalists’ inquiries as of press time. (Guardian)

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“It’s not debatable, we can’t go back,” Mbah Backs Tinubu on Fuel Subsidy Removal

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…Says “We’ve delivered good governance to Enugu”

Governor of Enug State, Dr. Peter Mbah, has doubled down in his support for the removal of fuel subsidy by President Bola Tinubu’s administration, saying it was undebatable and inconceivable for anyone to imagine a return to the old order.

Mbah spoke at the “Meet the Candidates” town hall meeting organised by Afia TV in Enugu on Wednesday, where he also said that his administration had delivered good governance to the people of the state across all sectors.

He described it as a pathetic misconception of the country’s situation and the direction it was headed for anyone to talk about the reintroduction of fuel subsidy.

“If you reintroduce fuel subsidy today, we will lose ten times whatever we are currently trying to gain in terms of the removal of subsidy. The poverty rate that you are going to experience will be very high because the naira would be automatically devalued.

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“We cannot go back to subsidy. And I do not think it is in the interest of the country for us to even debate that.

“Again, we should not even debate it because we do not want to send a signal to prospective investors that we are contemplating it. That would take us back. It is going to create panic in the system. It is going to get investors to pull back.

“Those that are coming in today to invest in that sector will become jittery. So, it is not even a subject to debate. It is something that we have moved on from, and we should be thinking about how to ensure that the natural benefits cascade to the households, create jobs and generate wealth for our people,” he said.

He said the nation should focus on how to further encourage private capital to flow, noting the growth the nation had experienced in the stock exchange space.

He added that Tinubu’s policies had stabilised the macro indicators, thus encouraging foreign direct investment.

“You can see quite a lot of funds coming into our country, not just portfolio investments, but also direct investments. It is also going to strengthen because the macro indicators are right,” he stated.

Mbah maintained that whereas fuel subsidy removal enables the government to target the less privileged, fuel subsidy as earlier practised benefited the rich more.

“By the way, I do not think the subsidy we practised before the President removed it was even the right one for the country because even the people we were looking at benefiting from it were only insignificantly benefiting from it. It was largely beneficial to our wealthy folks.

“But now, you can almost notice that the government is doing that in targeting the poor, using proceeds from subsidy removal. The government is aggressive on cash transfers. There is also the programme where the government is targeting 1,000 persons per ward across the entire country to be able to provide seed capital for them to become productive,” he added.

Meanwhile, on his stewardship so far, Mbah said his administration had kept faith with the people of Enugu State, delivering good governance across all sectors in line with his campaign manifesto.

He said the people of the state only needed to imagine where the state was before his inauguration as governor and where it is currently headed.

“Let us imagine the Enugu we knew four years ago. Let us just imagine an Enugu without Hotel Presidential. Let us imagine an Enugu without the International Conference Centre. Let us imagine an Enugu without Enugu Air. Let us imagine Enugu without the transport terminals, the 268 Smart Green Schools, 260 Type 2 Primary Healthcare Centres.

“You do not want them to imagine an Enugu without the International Hospital. You do not want them to imagine an Enugu without the CNG buses, the Nigergas. I think the list is endless.

“But I even think that we can stretch that imagination further because the work ahead will be more profound. Just imagine an Enugu where our children are receiving education that prepares them for the world because they have been imbued with evolving 21st-century skills. Imagine again an Enugu where you do not have any part of the city with an unpaved road.

“Also, imagine an Enugu in four years’ time that generates 660 megawatts of electricity; where we are able to provide 24-hour power supply; where you cannot come into your house and have the light off; and where people can run their businesses for a whole week without worrying about the cost of diesel. Just imagine an Enugu where you generate electricity and the people of Enugu are buying that at 120 naira because they own the coal that feeds the power plant.

“Imagine an Enugu where you now have to ride, not just on our CNG buses, but you have the monorail that can take you from point A to point B. Imagine an Enugu where you can fly from here to the United Kingdom, to the United States and other parts of the world,” he charged the electorate.

He urged the people to keep faith with the journey of greatness, growth and development, defending the gains of his first term and guaranteeing the promises of his second term by working for his re-election.

“If these imaginations capture our fancy, then we have a duty to fight for it. We do have a duty to continue to make sure that the bar does not come down and that the standard we have set in Enugu is sustained,” he concluded.

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Mbah: Enugu Now Produces 120 Million Litres of Water Daily, Expands Agricultural Investment

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Enugu Governor, Dr Peter Mbah
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By Tony Edike

Enugu State Governor, Peter Mbah, has said the state has increased its daily water production capacity from two million litres to 120 million litres, while intensifying efforts to ensure reliable water supply reaches households across Enugu metropolis.

Mbah disclosed this during a town hall meeting held at the International Conference Center in Enugu on Wednesday , where he addressed issues relating to water supply, agricultural development, regional security cooperation and the state’s economic prospects.

The governor explained that although the state had significantly expanded its water production capacity, ageing pipelines, burst pipes, encroached water corridors and other infrastructure challenges had slowed the distribution of water to some communities.

According to him, the state initially needed about 80 million litres of water daily to ensure adequate supply to homes across Enugu metropolis, against the two million litres being produced when his administration took office.

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He said the government began procuring critical equipment before his inauguration to accelerate the implementation of its 180-day water supply commitment.

“We front-loaded the procurement because some of the items we needed to procure were long-lead items,” Mbah said, explaining that some equipment, particularly large pumps, required several months to manufacture and deliver.

He added that the government also reactivated the Ninth Mile water scheme, which had remained dormant for years, contributing to the increase in production capacity.

However, Mbah said the expansion exposed weaknesses in the existing distribution network, including brittle pipes that had exceeded their design life, asbestos pipes and sections of the pipeline network obstructed by buildings.

He said the government decided against demolishing citizens’ buildings along affected pipeline routes, opting instead to develop new distribution networks.

According to the governor, Enugu metropolis has been divided into 14 zones, with work ongoing to extend water supply to the last mile.

He said the government had also procured horizontal drilling equipment to enable underground pipe installation without unnecessarily cutting open roads.

“We have a buffer of over 50 per cent to serve the entire city of Enugu. What we’re now dealing with is making sure that the water gets to the last mile,” he said.

Mbah assured residents that his administration remained committed to resolving the water supply challenge, adding that he received daily briefings on progress in the sector.

Enugu Opens Up Agricultural Sector to Investors

The governor also highlighted his administration’s agricultural development initiatives, saying the state was creating opportunities for commercial farming, mechanisation and agro-processing.

He disclosed that Enugu had more than 167,000 hectares of land available as a land bank for commercial agricultural investments, with some communities voluntarily making land available for farming and wealth creation.

Mbah said the government was engaging investors across different parts of the state and had established a tractor assembly plant to support agricultural mechanisation.

He added that the state had more than 60,000 farmers in its database, cultivating over 80,000 hectares of land, with the coordinates of their farms documented.

According to him, the government recently distributed more than 60,000 bags of fertiliser free of charge to farmers, alongside other farming tools, improved seedlings and handheld tractors.

He said the interventions were aimed at increasing agricultural productivity and helping smallholder farmers transition from subsistence farming to mechanised agriculture.

Mbah further disclosed that the government was constructing agro-transformation centres across the state’s three senatorial zones, in addition to a special agro-processing zone intended to support large-scale agricultural production and processing.

He also announced that an integrated livestock facility capable of accommodating more than 20,000 cattle was under construction around the Obollo and Eha-Amufu axis, while Enugu was among three states selected for a federal government integrated poultry project.

The governor said the agricultural initiatives were designed not only to increase food production but also to encourage processing, attract private investment and create employment.

Security: Mbah Cites Federal Support, Regional Intelligence Sharing

On security, Mbah said Enugu State had benefited from its relationship with the Federal Government, particularly through support for security operations and improved collaboration among security agencies.

Responding to concerns about insecurity along interstate border areas, including flashpoints connecting Enugu with neighbouring states, the governor said intelligence sharing and regional cooperation had improved.

He disclosed that the establishment of the state’s Distress Response Squad received approval from the Federal Government.

Mbah also said the state was working closely with the Nigerian Army, Police, Department of State Services, Nigerian Air Force and Nigeria Security and Civil Defence Corps to strengthen security operations.

According to him, although regional collaboration might not always be reflected in a single physical command centre, intelligence sharing and cooperation among security agencies had increased.

He maintained that Enugu’s relationship with the Federal Government had brought benefits beyond security, including opportunities to attract national events, conferences and other activities to the state.

Enugu Repositioning Itself as Regional Hub

The governor said Enugu was regaining its position as a regional hub after years in which it was increasingly being displaced by other locations.

He cited the hosting of national conferences and activities, including the National Council on Agriculture and other major events, as evidence of renewed interest in the state.

Mbah said the return of such activities was creating opportunities for local businesses and residents through increased economic activity.

He argued that reconnecting Enugu to national economic and institutional networks was essential to sustaining its regional importance.

Mbah Defends Federal Economic Reforms

The governor also defended the Federal Government’s economic reforms, arguing that stabilising the macroeconomic environment was necessary to attract private investment and stimulate growth.

He cited Nigeria’s foreign reserves, which he put at about $58 billion, and what he described as improved foreign exchange stability as indicators of progress.

Mbah said allowing the foreign exchange market to respond to market forces had helped address pressures that previously contributed to the depletion of the country’s reserves and weakened confidence in the naira.

He argued that economic stability would encourage private capital to enter the economy, leading to job creation, increased earnings and a reduction in poverty.

According to him, the reforms required political courage and should be assessed by their impact on economic indicators and growth.

“We are on the right path, and I can tell you from the numbers we’re seeing and the growth we are witnessing now, we are seeing the light at the end of the tunnel,” he said.

The governor maintained that the benefits of economic stabilisation would become more evident as investment increased and economic activity expanded.

He said the state government would continue pursuing its infrastructure, agricultural and security initiatives as part of efforts to improve living conditions and strengthen Enugu’s economic position.

 

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