{"id":121090,"date":"2025-07-29T17:35:55","date_gmt":"2025-07-29T16:35:55","guid":{"rendered":"https:\/\/pointblanknews.com\/pbn\/?p=121090"},"modified":"2025-07-29T17:35:55","modified_gmt":"2025-07-29T16:35:55","slug":"tariff-war-eerc-accuses-nerc-of-undermining-constitution-defends-cut","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/tariff-war-eerc-accuses-nerc-of-undermining-constitution-defends-cut\/","title":{"rendered":"Tariff War: EERC Accuses NERC of Undermining Constitution, Defends Cut"},"content":{"rendered":"<div style=\"text-align: justify;\">\u200eDaniel Adaji<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eThe Enugu State Electricity Regulatory Commission (EERC) has accused the Nigerian Electricity Regulatory Commission (NERC) of overstepping its constitutional limits by opposing Enugu\u2019s recent reduction in electricity tariffs.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eAccording to EERC, only states have the legal right to regulate electricity distribution within their borders.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eIn a rejoinder published on its website Monday, EERC defended its decision to slash the tariff for Band A customers in Enugu from N209\/kWh to N160\/kWh, effective August 1, 2025. The move came after NERC issued a Public Notice last Thursday, questioning the legality of EERC\u2019s tariff reduction.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eEERC insisted the backlash from NERC stems from \u201cmisconceptions and misplaced focus,\u201d arguing that some stakeholders have failed to grasp the sweeping reforms introduced by the 2023 constitutional amendment, the passage of the Electricity Act 2023, and the birth of a sub-national electricity market.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e\u201cThe question is whether in a fully decentralised Electricity Supply Industry, multiple tariff regimes are not reasonably possible?<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e\u201cFurthermore, where a state like Enugu State has assumed full regulatory oversight over its intrastate market, is it precluded from issuing a Tariff Order for that market?\u201d<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eChallenging NERC\u2019s interpretation of constitutional powers, EERC stated, \u201cOn this constitutional matter, it should be noted that under Paragraph 14(b) of Part II of the Second Schedule to the Constitution, only States have the constitutional right to make laws with respect to the distribution of electricity.\u201d<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eThe agency pointed out that the National Assembly&#8217;s powers are limited to the generation and transmission of electricity, and that distribution was \u201cdeliberately excluded\u201d from its jurisdiction.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eEERC further took issue with NERC\u2019s claim that states must fully absorb wholesale grid supply costs or provide subsidies, calling it a misapplication of authority.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e\u201cThe jurisdiction over the national grid and generating plants licensed by NERC is distinct and separate from benefits under the electricity subsidy programme of the Federal Government.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e\u201cThe question whether states that have established their electricity markets should benefit from the electricity subsidy programme is an issue of constitutional importance.\u201d<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eEERC warned that denying any state a share of the electricity subsidy\u2014funded from the Federation Account\u2014because it exercises its right to regulate its own market \u201cwill be subversive of the Constitution.\u201d<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e\u201cIn a federation such as Nigeria, it does not lie with NERC to make this determination as it summarily declared in the Notice. The subsidy programme is funded from the Federation Account established under section 162 of the Constitution. This account belongs to the three tiers of government in Nigeria and benefit therefrom is determined by the Constitution.\u201d<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eThe rejoinder suggested that NERC\u2019s underlying motive was to \u201cpreserve the exclusive right to determine end-use tariffs in the NESI,\u201d while pushing states to merely rubber-stamp federal tariffs.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e\u201cUnder this arrangement, States that accept this usurpation will continue to enjoy the national subsidy on the generation tariff. And the States that do not will be denied the benefit, and told that they could go and generate their own electricity, even though the SubCos are entitled to a share of the Successor DisCos\u2019 minimum offtake obligation from the grid,\u201d EERC argued.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eReacting to NERC\u2019s justification that its new Tariff Order was based on reducing the average generation tariff from N112.60\/kWh to N45.75\/kWh with a subsidy differential of N66.85\/kWh, EERC maintained that its decision was rooted in due process and state law.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e\u201cEERC states unequivocally that the reduction in the tariff for Band A customers under the Tariff Order was not based on any populist sentiment, or reckless bluster. Rather, it is a result of a rigorous and transparent process of tariff determination during which costs and other relevant data from MainPower Electricity Distribution Company Limited were carefully reviewed and analysed based on the provisions of the Enugu State Electricity Law 2023, and EERC\u2019s Tariff Methodology Regulations 2024.\u201d<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eThe development marks a growing face-off in Nigeria\u2019s decentralised electricity sector, setting the stage for legal and policy battles between state and federal regulators.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>\u200eDaniel Adaji \u200e \u200eThe Enugu State Electricity Regulatory Commission (EERC) has accused the Nigerian Electricity Regulatory Commission (NERC) of overstepping its constitutional limits by opposing Enugu\u2019s recent reduction in electricity&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":97148,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-121090","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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