Electricity consumers in the South East, under the aegis of South East Electricity Consumers Association, SEECA, have called on the Enugu Electricity Regulatory Commission, EERC, to, as a matter of urgency, resolve any pending tariff impasse between it and Mainpower Electricity Distribution Limited, MPDL.
The group said that Enugu, being the capital of Igbo land and the defunct East Central State, required peace and stable power supply in a manner that will neither exploit the consumers nor the electricity distribution company in charge of the state.
In a letter submitted to EERC by the group and signed by its Coordinator, Dr. Sebastine Chukwuebuka Okafor, he stated that the ongoing dispute over the July 18, 2025 tariff order had thrown many communities into darkness and deepened confusion in the electricity supply chain.
He also stated that such a sensitive matter affecting the lives of millions of residents should not be allowed to linger.
According to him, the Association had carefully studied the issues surrounding the tariff order and observed that both parties have entrenched positions which have stalled progress.
Okafor also explained that the disagreement over data usage, technical losses, operational costs, and capital expenditure recognition are all technical matters that require neutral intervention.
He revealed that MPDL had filed a petition against the tariff reduction, arguing that the new Band A tariff of N160/kwh would cause the company a loss of over N1.3 billion in the first month, while the regulator maintained that the figures were derived from the company’s own submissions.
SEECA also posited that, since the dispute began, power supply in Enugu nosedived, leaving several neighbourhoods in darkness for days.
In its recommendations, SEECA urged EERC to suspend the implementation of the disputed tariff order until the matter is fully addressed, while also calling for the appointment of an independent and technically grounded third party to review the contested figures and mediate between both sides.
The group also demanded that provision for meter installation be factored into the tariff framework to ensure smooth and timely distribution of meters to all unmetered customers across the state.
It, however, appealed to the regulator to maintain its impartial role and balance the interests of investors and consumers for sustainable electricity delivery in the region.
The letter reads,
The position paper of South East Electricity Consumers Association(“SEECA”) on the Petition of Mainpower Electricity Distribution Limited(“MPDL”) on the Tariff Order dated 18th July, 2025
South East Electricity Consumers Association(“SEECA”) is an Association committed to fighting for the best interest of consumers of electricity in the South East. SEECA is duly registered with the Corporate Affairs Commission(find attached certificate by CAC).
Our approach to fighting for the interests of electricity consumers in the South East is to ensure the sustenance of the supply of electricity and also that EEDC and its Subsidiary in Enugu State, Mainpower Electricity Distribution Limited(MPDL) as well as other parts of the South East, do not exploit the ignorant customers.
As an enlightened Association, we are very much aware that supply of electricity is pivotal to the development of any society. Again, electricity supply as a service which is highly essential requires high financial outlay which the government alone cannot provide hence the privatization of the sector and eventual migration to state electricity market. Given the fact that a reasonable balance is required between the private investor, who has invested huge fund and the consumers who feel that the service should be free, necessitates an independent Regulator that ensures that the interests are balanced for the assurance of sustainable supply.
It is in the light of the above that SEECA decided to present this Position Paper in order to resolve this tariff impasse between EERC and EEDC/MPDL for the benefit of electricity consumers in Enugu State.
Enugu State is the pride of the South East where all Igbo men have their presence. In a way, it is the de facto capital of the South East. It is important to remind that Enugu has continuously been a Capital of either a region or a State for a long time now – it was the Capital of the then Eastern Nigeria; later the Capital of the defunct East Central State; thereafter the Capital of Old Anambra State and; now the Capital of Enugu State. Such an important city, more than anything, requires a peaceful and stable supply of electricity in a way that the consumers would not be exploited.
As the Igbo say, “Ụlọ e jiri wulite obodo, a naghị eji ya agba egwu.” (“The house that was used to build a city should not be made a subject of ridicule.”)
Therefore, it was with deep concern that SEECA received the news in July, 2025 of the contestations between EERC, the Regulator and EEDC/MPDL over the Tariff Order issued by the former on 18th July 2025. The situation became further tensed up when other electricity industry players like the Genco associations and federal regulator, National Electricity Regulatory Commission(NERC), also joined the fray.
SEECA as an association with special interest in the South East, has taken time out to understand the issues involved and was able to distill the following facts:
a. Enugu State Electricity Regulatory Commission(EERC) was inaugurated in 2024 and took over the Enugu Electricity market from NERC on 22nd October, 2024 and immediately issued an Interim Licence to MPDL, a subsidiary of EEDC;
b. On 18th July, 2025, EERC issued a Tariff Order which reduced the consumer tariff for Band A from 209/kwh to 160/kwh stating that the tariff reduction was arrived at using the data supplied by MPDL;
c. SEECA was later to learn from the news item published on social media that MPDL has filed a Petition against the Tariff Order stating that it never came to an agreement with EERC on the data used for the tariff and that EERC did not follow its laid down procedure of first engagement with the licensee and later a Formal Hearing where such engagement fails to yield an agreement or a compromise;
d. SEECA also noted that MPDL singled out the following areas as the bone of their contention: ATC&C Loss; Opex and Capex recognition; the quantum of energy recognized by EERC as the baseline energy for the tariff;
e. Whilst the contestations were going on, SEECA noticed that the supply of electricity across Enugu State nosedived to a level in which many neighbourhoods were thrown into darkness for days on end;
f. SEECA also noticed a Public Announcement which tends to show that MPDL has reverted to the earlier tariff of 209/kwh after a brief spell of supplying customers at 160/kwh blaming it on technical glitch– all the same customers are still paying the same and nothing much has been achieved by the tariff reduction brouhaha;
g. It is also important to mention that SEECA noticed that the electricity tariff being set is the one from the grid which left the Association to wonder how a tariff priced at 209/kwh across the federation with inherent subsidies will be sold at a reduced price in Enugu State.
Position of SEECA:
The following are the Position of SEECA in this tariff reduction brouhaha:
a. As MPDL has filed a Petition contesting the basis of the tariff and also that the tariff reduction is not sustainable given that they will lose at least N1.3bn in the first month, there is the need to have a wholesome review of the entire tariff process;
b. That there is the overarching need to suspend the formal application of reduced tariff order pending the determination of the complaint as encapsulated in the Petition;
c. SEECA recognizes that the contested aspect of the tariff is highly technical and may require an inputs from industry specialists given the fact that both parties have taken a stance leading to one, EERC, issuing a Tariff Order on 18th July, 2025. Therefore, it would not be out of place to seek an independent and highly industry knowledgeable 3rd party to review the contested areas as mentioned above in order to arrive at an acceptable or compromised position;
d. SEECA also seizes this opportunity to canvass for a special treatment in provision of meters to customers in Enugu State. To this end, the capex for metering should be included in the tariff in a way that will secure seamless deployment and timeous conclusion of the issuance of meter to all unmetered customers in Enugu state.
e. That the continued disagreement between EERC and EEDC/MPDL can be likened to the proverbial fight between two elephants which will make the grass to suffer. In this instance, the grasses are the electricity consumers of the South East.
Way forward/Prayers:
Recognizing that the issues are highly technical for which customers might not be able to make meaningful inputs, EERC and EEDC/MPDL should allow an Independent 3rd party to examine the data and be able to come to a conclusion. The outcome of the Independent 3rd party would be tendered at the hearing and be considered by EERC.
Signed,
Dr. Sebastine Chukwuebuka Okafor.
