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FG summons states and Discos to resolve tariff dispute.
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Enugu tariff cut sparks supply cuts, losses, and blackouts.
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NERC meeting in Lagos expected to shape electricity regulation.
The Federal Government has stepped into the growing clash between state governments and electricity distribution companies (Discos) over who has the authority to set electricity tariffs. The Nigerian Electricity Regulatory Commission (NERC) has summoned all stakeholders to a meeting scheduled for next week in Lagos.
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EKO HOT BLOG reports that the dispute stems from provisions of the Electricity Act, 2023 (Amended), which states claim empowers them to regulate power within their territories. Through the Forum of Commissioners for Power and Energy in Nigeria, state governments argue they can design tariffs for local markets, citing Enugu State’s recent reduction of Band A tariff from ₦209/kWh to ₦160/kWh.
Discos, however, under the Association of Nigerian Electricity Distributors (ANED), insist states cannot set prices for electricity sourced from the national grid. ANED’s Chief Executive Officer, Sunday Oduntan, warned that attempts to impose lower tariffs below cost would cripple the sector, stressing that states only have pricing authority when they generate, transmit, and distribute power within their borders.
The tariff cut in Enugu triggered supply disruptions, with the Enugu Electricity Distribution Company slashing supply by 50 percent, citing potential losses of over ₦1bn monthly. This led to blackouts and disputes between the Enugu Electricity Regulatory Commission (EERC) and MainPower Distribution Company.
NERC’s General Manager, Public Affairs, Dr Usman Abba-Arabi, confirmed that invitations have been sent to state regulators, Discos, and other stakeholders. He said the forum will deliberate on contentious issues and seek solutions, though discussions will be held behind closed doors.
Meanwhile, state officials maintain they have constitutional backing to adjust tariffs. Enugu Governor’s adviser on power, Joe Aneke, argued the state’s tariff model was based solely on distribution costs, insisting NERC does not have overriding authority on such matters.
The Lagos meeting is expected to be decisive in determining how power market regulation will evolve under the amended Electricity Act.
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