Enugu Reduces Band A Electricity Tariff to N160 per kWh from August 2025
Enugu State has announced a significant drop in electricity prices for its Band A customers. The new rate will be N160 per kilowatt-hour, starting from August 1, 2025. This new price is a major decrease from the previous rate of N209 per kWh.
The Enugu State Electricity Regulatory Commission (EERC) made this decision through a new tariff order it issued to MainPower Electricity Distribution Limited. MainPower replaced the Enugu Electricity Distribution Company (EEDC) after Enugu State received permission from the Nigerian Electricity Regulatory Commission (NERC) to manage its electricity market.
According to the commission, the new tariff is based on actual costs and includes the Federal Government’s subsidy for power generation. The commission said this move would make electricity pricing more transparent and fair to the people of Enugu State.
This decision is backed by the Enugu State Electricity Law of 2023, which gives the state the power to regulate electricity generation, transmission, and distribution within its borders. The law came into effect after a constitutional change in 2023 that allows Nigerian states to control their electricity sectors.
Additionally, the Electricity Act 2023 replaced the old 2005 power reform law. This new law separates electricity supply from distribution and also gives states like Enugu full control to set rules and prices for their power markets.
The chairman of EERC, Chijioke Okonkwo, explained that after reviewing MainPower’s request and cost breakdown, the commission decided that N160/kWh would be fair for Band A customers. He noted that the average price of electricity was calculated to be N94, based on government subsidies. Normally, power generation costs N112, but the Federal Government pays N67 of that, leaving only N45 to be paid by the distributor.
Even though the average cost is lower, Band A customers will pay N160 per kWh to help the company handle price changes and reduce the effect of subsidy removal. Tariffs for other categories like Bands B, C, D, and E will stay the same for now.
Okonkwo warned that this new rate might not last if the Federal Government decides to stop subsidizing electricity costs. If that happens, the cost of power might go up again.
However, for now, residents in Enugu who are on Band A can expect cheaper electricity from August 2025. The commission said this is a fair move to make sure consumers benefit from the existing subsidy.
To ensure customers get the right service, the commission has also created a system to monitor MainPower’s performance. The company must publish a daily report on how many hours of electricity each Band A feeder provides. If they fail to meet the required hours for two days in a row, they must report it to the commission. If they fail for seven straight days, the feeder will be downgraded to a lower band with fewer expectations.
Although NERC (the national commission) said it removed the subsidy for Band A users in April 2024, Enugu’s electricity body insists their new price reflects the real cost after factoring in subsidies still applied to power generation.
With this move, Enugu is becoming one of the first Nigerian states to lower electricity prices under its new power market law. It shows how states can now take charge of their energy systems to better serve the needs of their people.
