FG SUMMONS STATES, DISCOS TO MEETING OVER ELECTRICITY TARIFF DISPUTE
Read Time:2 Minute, 16 Second
By Aishat Momoh. O.
The Federal Government has waded into the escalating face-off between state governments and electricity distribution companies (Discos) over who has the authority to regulate electricity tariffs, summoning all stakeholders to a crucial meeting next week in Lagos.
The Nigerian Electricity Regulatory Commission (NERC), which convened the meeting, confirmed on Thursday that invitations had been sent to state regulatory commissions, Discos, and other operators in the Nigerian Electricity Supply Industry.
READ MORE:
“The next stakeholders’ meeting is scheduled for next week in Lagos. State Regulatory Commissions, the Discos, and other industry players will all be in attendance. It’s a forum where industry issues will be discussed and solutions proffered,” NERC’s General Manager of Public Affairs, Dr. Usman Abba-Arabi, said.
The dispute stems from the Electricity Act 2023 (Amended), which empowers states to regulate power generation, transmission, and distribution within their territories. While state governments insist this includes the right to fix tariffs, Discos argue that states cannot determine prices for electricity supplied from the national grid.
The controversy intensified after the Enugu Electricity Regulatory Commission (EERC) ordered a tariff cut for Band A customers from N209/kWh to N160/kWh, effective August 1, 2025. The directive led the Enugu Electricity Distribution Company (EEDC) to slash supply to the state by 50 per cent, citing projected losses of over N1bn monthly.
The Association of Nigerian Electricity Distributors (ANED), through its spokesperson, Sunday Oduntan, rejected the Enugu directive, warning that selling power below cost would collapse the sector. “States cannot fix cross-border tariffs for energy from the national grid. They can only determine tariffs for power generated and distributed entirely within their borders,” Oduntan said.
In response, state officials argued that they acted within their constitutional mandate. The Forum of Commissioners for Power and Energy in Nigeria (FOCPEN) maintained that the amended Act gives states jurisdiction over electricity distribution and tariff setting. The Special Adviser to the Enugu Governor on Power, Joe Aneke, said the new tariff did not alter generation or transmission costs, insisting that state regulators have the right to set distribution tariffs.
The standoff has left Enugu residents caught between conflicting directives. While MainPower, the Disco in the state, reverted to the old Band A tariff of N209/kWh, the EERC threatened sanctions for non-compliance, urging customers to report overbilling.
NERC, in an earlier advisory, had warned that states cutting tariffs must be ready to subsidise the shortfall to avoid destabilising the national electricity market.
The outcome of next week’s meeting in Lagos is expected to be pivotal in clarifying regulatory powers and preventing further disruption in the sector.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0