FG Summons States and Discos Over Power Tariff Dispute

🔹 Context:

  • The Electricity Act 2023 (Amended) decentralizes Nigeria’s power sector, allowing states to regulate generation, transmission, and distribution within their borders.
  • States argue they now have full rights to set electricity tariffs in their jurisdictions.
  • Discos and Gencos disagree, saying states can’t set prices on electricity sourced from the national grid (i.e., cross-border electricity).

🔹 Flashpoint: Enugu State

  • The Enugu Electricity Regulatory Commission (EERC) slashed Band A tariffs from N209/kWh to N160/kWh, effective August 1, 2025.
  • MainPower Electricity Distribution Ltd was directed to implement the new rate.
  • In response, EEDC, which supplies MainPower, cut electricity supply by 50%, citing projected N1bn+ monthly losses.

🗣️ Discos’ Position (via ANED – Association of Nigerian Electricity Distributors):

  • States can’t price power they didn’t generate, especially when it comes from the national grid (cross-border).
  • They argue this kind of tariff interference is illegal, unworkable, and economically unsound.
  • CEO Sunday Oduntan warned: “They are just shooting themselves in the foot. You can only control power you generate, transmit, and distribute within your own state.”

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