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Mainpower Petitions Eerc, Demands Suspension Of Tariff Cut
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MAINPOWER PETITIONS EERC, DEMANDS SUSPENSION OF TARIFF CUT

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Mainpower Electricity Distribution Company has formally petitioned the Enugu Electricity Regulatory Commission (EERC), asking it to suspend the recent tariff reduction order that took effect on August 1, 2025.

 

The EERC had earlier slashed electricity tariffs for Band A customers from ₦209/kwh to ₦160.40/kwh, while freezing tariffs for Bands B and C. The decision was widely criticized by stakeholders, including the Nigerian Electricity Regulatory Commission (NERC), power generation companies (Gencos), other distribution companies (Discos), and even the Federal Ministry of Power, which described the move as “unsustainable.”

 

In its petition, signed by Managing Director/CEO Dr. Ernest Mupwaya, Mainpower argued that the tariff cut was done without proper agreement on key cost parameters and in violation of EERC’s own tariff methodology rules. The company claims that despite several meetings with the regulator in June and July, no consensus was reached before the new tariff was imposed.

 

Mainpower warned that if the tariff order remains in place, it could lead to serious financial, operational, and reputational damage, including:

 

Revenue Shortfall: An estimated ₦6.9 billion loss between August and December 2025, with payment compliance to the Nigerian Bulk Electricity Trading Plc (NBET) expected to fall from 97% to 81%.

 

Supply Risk: Possible disconnection of the electricity supply, since Mainpower may be unable to meet remittance obligations.

 

Investment Setback: Its planned ₦33.2 billion capital expenditure programme, including the rollout of 350,000 smart meters, could be halted, leaving 42% of customers unmetered into 2026.

 

Service Decline: Reduced funding for infrastructure maintenance may increase outages and push more customers to rely on self-generation.

 

Reputation & Jobs: Investor confidence could shrink, while staff unrest may rise if payroll and vendor obligations are not met.

 

The company has therefore asked the EERC to suspend the implementation of the tariff order and review it in line with proper procedures. Mainpower is proposing two alternative scenarios — a tariff of ₦206.80/kWh or ₦194.54kWhh — instead of the current ₦160.40kWhh.

 

The EERC is now expected to respond to the petition and decide whether to maintain or review the controversial tariff cut.

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