The struggle for control of electricity tariff regulation between Nigerian states and distribution companies (Discos) has intensified, with the Federal Government now mediating to prevent a sector-wide collapse.
The Nigerian Electricity Regulatory Commission (NERC) has summoned state power commissioners, Discos, and other stakeholders in the Nigerian Electricity Supply Industry (NESI) to a meeting in Lagos next week. The agenda is to address disputes over tariff-setting powers under the Electricity Act 2023 (Amended).
At the centre of the controversy is Enugu State, which recently ordered a reduction in Band A electricity tariffs from N209 per kilowatt-hour to N160/kWh. The move prompted a backlash from MainPower Electricity Distribution Limited, which argued that such a cut would generate losses exceeding N1bn monthly and undermine market obligations.
Sunday Oduntan, spokesperson of the Association of Nigerian Electricity Distributors (ANED), warned that state regulators risk destroying the sector. “States can control their own power if they generate and distribute it internally. But they cannot regulate electricity that comes from the national grid. Doing so will collapse the market,” he cautioned.
State commissioners under the Forum of Commissioners for Power and Energy in Nigeria (FOCPEN) insist that they are empowered to regulate tariffs. Prince Eka Williams, Chairman of FOCPEN, stated, “We are not in a war. Our focus is to ensure every home is lit up. We will continue to work with stakeholders to advance the sector.”
Frontpagenews.ng reports that the Enugu Electricity Regulatory Commission (EERC) has accused MainPower of reverting to the old tariff despite its directive, urging customers to report overbilling and warning of sanctions against the distribution company.
NERC previously advised that any state that slashes tariffs must cover the shortfall through subsidies. However, Enugu’s Special Adviser on Power, Joe Aneke, said the EERC’s tariff order only affects distribution costs and does not interfere with generation or transmission pricing, thereby keeping within its mandate.
The unfolding dispute highlights a critical test of Nigeria’s new power sector reforms, which seek to decentralise electricity management but face resistance from established market players.
