The Federal Government has waded into the intensifying dispute between state governments and electricity distribution companies (Discos) over who has the legal authority to set electricity tariffs. The intervention comes after weeks of heated arguments that risk destabilising Nigeria’s power sector.
Through the Nigerian Electricity Regulatory Commission (NERC), the Federal Government has summoned energy commissioners from all states, as well as representatives of the Discos, to a meeting scheduled for next week in Lagos. The goal is to address the tariff impasse and prevent further disruptions in electricity supply.
State energy regulators, operating under the umbrella of the Forum of Commissioners for Power and Energy in Nigeria (FOCPEN), maintain that the Electricity Act 2023 (Amended) empowers them to control their respective electricity markets, including tariff structures. Enugu State has already attempted to slash its Band A tariff from N209 per kilowatt-hour to N160/kWh.
However, the Association of Nigerian Electricity Distributors (ANED), which represents the Discos, insists that while states can regulate power within their boundaries, they have no authority to set prices on electricity drawn from the national grid.
“The Electricity Act, 2023 (Amended), allows the states to generate, transmit, and distribute electricity within their respective states. But what happened in Enugu was that the electricity regulatory commission in the state wanted to control the price of a product that does not belong to them. That product has a cost of production, and you cannot put a price on it,” said Sunday Oduntan, Chief Executive Officer of ANED.
NERC’s General Manager of Public Affairs, Dr. Usman Abba-Arabi, confirmed that all stakeholders have been invited. “The next Nigerian Electricity Supply Industry stakeholders meeting is scheduled for next week in Lagos. State regulatory commissions, Discos, and other players will attend. It’s a forum where industry issues will be discussed and solutions proffered,” he said.
okay.ng reports that this will be the first time NERC brings both state regulators and distribution companies together since the passage of the amended Electricity Act.
Meanwhile, consumers in Enugu have expressed frustration, alleging that despite the new order, they are still being billed at the old tariff of N209/kWh. The Enugu Electricity Regulatory Commission (EERC) has since accused MainPower Electricity Distribution Company Limited of violating its tariff directive and threatened sanctions.
The showdown underscores the growing tension between decentralisation of power regulation and the financial realities of electricity distribution in Nigeria.
