{"id":120988,"date":"2025-07-25T05:28:08","date_gmt":"2025-07-25T04:28:08","guid":{"rendered":"https:\/\/pointblanknews.com\/pbn\/?p=120988"},"modified":"2025-07-25T05:28:08","modified_gmt":"2025-07-25T04:28:08","slug":"nerc-declares-enugu-lacks-power-to-cut-grid-electricity-tariffs","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/nerc-declares-enugu-lacks-power-to-cut-grid-electricity-tariffs\/","title":{"rendered":"NERC Declares Enugu Lacks Power to Cut Grid Electricity Tariffs"},"content":{"rendered":"
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By Daniel Adaji<\/div>\n
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The Nigerian Electricity Regulatory Commission (NERC) has said the Enugu State Electricity Regulatory Commission (EERC) lacks the authority to set electricity tariffs for power supplied from the national grid.<\/div>\n
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In a statement released Thursday night, NERC clarified that while the 2023 Electricity Act grants states regulatory powers over electricity in their respective jurisdictions, such powers do not override those granted to NERC by the National Assembly, especially concerning electricity generated and transmitted through the national grid.<\/div>\n
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This clarification follows recent controversy over EERC\u2019s decision to slash tariffs for Band A customers in Enugu State, raising industry concerns over who would cover the resulting shortfall.<\/div>\n
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NERC said: \u201cStates do not have jurisdiction over the national grid and over electric power stations established under federal laws\/operating under licences issued by the Commission; they must holistically incorporate the wholesale costs of grid supply to their States without any qualification or deviation in their design of tariffs for end-use customers in order not to distort the dynamics of the market or be prepared to make a policy intervention by way of a subsidy for any deviation in the tariff structure that distorts the wholesale generation, transmission and legacy financing costs in NESI.\u201d<\/div>\n
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The commission highlighted concerns raised by stakeholders over Tariff Order No. EERC\/2025\/003 issued to Mainpower Electricity Distribution Limited (MEDL), which depends entirely on power from the national grid. The order set Band A tariffs at \u20a6160.4\/kWh and froze tariffs for other bands, a move NERC warned could disrupt cost recovery in the electricity value chain.<\/div>\n
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\u201cIt is pertinent to state that the NGN160.4 per kWh was arrived at largely by reducing the current average Generation Tariff of NGN112.60 per kWh to NGN45.75, with an assumption of subsidy component, a difference of N66.85 per kWh,\u201d the commission said.<\/div>\n
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NERC emphasized its duty under Section 34(1) of the Electricity Act to \u201ccreate, promote and preserve efficient electricity industry and market structures,\u201d and noted that EERC has a similar obligation. However, it cautioned against any action that could destabilize the national grid or electricity market.<\/div>\n
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The commission said it is in talks with EERC to address any misinterpretation of the cost structure of imported power from the grid and reaffirmed its commitment to ensuring cost recovery in line with federal laws.<\/div>\n
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