Cost, Crisis & Commitment: The Enugu Electricity Tariff Debate

BY LOVETH EZE

On October 16, 2025, the Enugu State Electricity Regulatory Commission (EERC) convened a quasi-judicial public hearing at the International Conference Centre, Enugu, to review a tariff petition filed by MainPower Electricity Distribution Limited (MainPower), a subsidiary of the Enugu Electricity Distribution Company (EEDC). The petition followed the EERC’s reduction of the Band A tariff from ₦209.50 to ₦160.40 per kWh, a move MainPower described as procedurally hasty and based on flawed cost assumptions. Under EERC Regulation No. EERC-R-001 (2024) and the Tariff Methodology Regulation (EERC/R004, 2024), such petitions are allowed within 30 days of a tariff order if cost parameters remain disputed. The session, chaired by Commissioner Ruben Okoye, lasted over four hours and featured intense technical deliberations.

MainPower’s Defense

MainPower’s Group Head of Regulatory, Barr. Uche Okala, argued for cost-reflective tariffs based on verifiable data, citing the company’s Regulatory Asset Base (₦65.4 billion), realistic energy volumes, and asset-liability delineation in line with NERC’s framework. The EERC, invoking the Enugu Electricity Law No. 1 of 2023 and the Electricity Act 2023, defended its tariff determination as a lawful exercise of new state-level authority. However, as the World Bank (2024) observed, in many developing countries, “electricity tariffs are rarely high enough to cover the full cost of service delivery,” echoing MainPower’s warning that underpricing jeopardizes operational sustainability.

Technical and Data Discrepancies

Under cross-examination by Dr. Marilyn Amobi (former MD, NBET), MainPower’s CEO, Dr. Ernest Mupwaya, defended the company’s projections on energy volumes, ATC&C losses, OPEX/CAPEX, and macroeconomic escalation factors. A pivotal moment came when Dr. Iloh Faustinus Chinedu, Group Head of Business Intelligence and Process Improvement, exposed an 18% variance between EERC’s assumed monthly allocation (94,965 MWh ≈1,140 GWh/year) and MainPower’s submission (80,355 MWh ≈964 GWh/year). This discrepancy, he explained, deflated the correct tariff from ₦198.58/kWh to ₦160.40/kWh. “There would have been no need for this back-and-forth if the EERC had not been in such haste,” Dr. Chinedu stated.

The International Energy Agency (IEA, 2025) reported a 4.3% global rise in electricity demand in 2024, underscoring the need for accurate projections to ensure energy planning aligns with real consumption patterns.

Broader Context and Regulatory Implications

This Enugu case reflects global and national challenges where electricity distribution companies face high ATC&C losses, exchange rate volatility, and investment recovery gaps. In Sub-Saharan Africa, 600 million people still lack reliable electricity access (IEA, 2024). The Electricity Act 2023 decentralizes regulation, placing state commissions like EERC at the frontline of balancing consumer protection with investor confidence. The EERC’s verdict, therefore, will likely set a precedent for sub-national tariff governance in Nigeria.

Business Intelligence as a Strategic Asset

MainPower’s identification of the data gap exemplifies the role of Business Intelligence (BI) in modern utility management. BI enables real-time tracking of consumption, losses, and performance, ensuring evidence-based decision-making. Globally, 49% of organizations have increased BI adoption post-pandemic, and data-driven companies are 77% more likely to achieve long-term success (PixelPlex, 2021). A 2022 MDPI study further confirms that BI enhances energy management, efficiency, and sustainability, validating its importance in achieving reliable power supply.

Conclusion

As EERC’s panel deliberates, its decision will test Nigeria’s readiness for data-driven electricity governance. If grounded in transparent, evidence-based parameters, the outcome could strengthen investor confidence and consumer trust. Otherwise, it risks deepening structural deficits in the energy value chain.

Ultimately, for electricity to flow, the numbers must align — accurate data, fair regulation, and robust business intelligence remain the tripod of a sustainable power future capable of driving Nigeria toward energy security and economic resilience.

EZE is a Social Analyst and Commentator

Editor

Jude Ossai (JP) a veteran journalist is a National Diploma holder in Mass Communication from Ogwashi-Uku Polytechnic Ogwashi-Uku, Delta State. He also studied at Enugu State University of Science and Technology (ESUT) Enugu and Imo State University, Owerri for his first and second degrees in Mass Communication, respectively. He writes extensively on politics, crime, corruption, climate change, healthcare, human rights, social justice, among others.