Jul 24, 2025 (Daily Trust/All Africa Global Media via COMTEX) --
The Forum of Commissioners for Power and Energy in Nigeria (FOCPEN) has stated that not all states that have implemented the 2023 Electricity Act planned to reduce electricity tariff in their states.
They however said the reduction made by the Enugu Electricity Regulatory Commission (EERC) was in line with the provisions of the law and carried out based on data provided by the Enugu Electricity Distribution Company.
They also said they are not relying on the federal government to pay subsidy for any shortfall they accrued but seeking an end to the opaque and untargeted subsidy run by the government.
The clarification was contained in a statement signed by the forum's chairman and Commissioner of Power and Renewable Energy, Cross River State, Prince Eka Williams, and its Secretary and Commissioner of Power, Renewable Energy and Transport, Benue State, Barr. Omale Omale.
It would be recalled that reduction by the EERC had raised a storm in the Nigerian Electricity Supply Industry (NESI) with the electricity Generation Companies (GenCos) saying the move seeks to create more liquidity issues in the sector and did not clarify who will pay for the shortfall.
But the forum insists that EERC's tariff order followed a comprehensive and meticulous review process that involved a thorough examination of the capital expenditure (Capex) and operational expenditure (OpEx) assumptions of MainPower Electricity Distribution Company, the State electricity distribution company.
"This rigorous assessment was conducted using data and information provided by the distribution company itself. EERC also carried out a rigorous assessment of MainPower's existing customer tariff classification and regulatory asset base and has set tariffs appropriately based on these findings, aiming for a cost-reflective and fair market for consumers and operators alike.
They added that while Enugu State has, based on its specific market conditions and regulatory findings, adjusted its Band A tariffs downwards, this does not dictate a uniform approach for other States.
"For instance, several SERCs (e.g Ekiti State, Ondo State, etc), have issued tariff orders maintaining the present MYTO tariffs. Without any equivocation, each State Electricity Regulator is uniquely positioned to determine and implement appropriate electricity tariffs that are fair to customers and at same time, catalyze investments within their electricity markets, depending on their peculiar electricity market dynamics, licensee cost structures, consumer needs and regulatory assessments."
They assured investors in the NESI that States are not seeking to arbitrarily downgrade tariffs, nor depend on unsustainable electricity subsidies by the Federal Government.
"On the contrary, States are resolute in their call for the removal of untargeted and opaque federal subsidies, advocating instead for the establishment of truly cost-reflective sub-national and wholesale electricity markets. States, including Enugu State, are collectively committed towards fostering financially viable and sustainable electricity sectors where electricity tariffs accurately reflect the cost of service delivery, thereby encouraging investment and efficiency."
"Lastly, FOCPEN wishes to clarify that State electricity regulators, including EERC, regulate the intra-state distribution segment not the wholesale electricity market.
COMTEX_467525576/2029/2025-07-24T07:35:15
by Faruk Shuaibu
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