States Are Empowered to Regulate Their Markets – Expert Reacts to NERC’s Rejection of Enugu Regulator’s Electricity Tariff Reduction

Energy expert and CEO of Solarcentric, Adetunji Iromini, has criticized the Nigerian Electricity Regulatory Commission (NERC) for rejecting the Enugu Electricity Regulatory Commission’s (EERC) decision to reduce Band A customers’ electricity tariff from N209/kWh to N160/kWh.

Iromini argued that the Electricity Act 2023 empowers states to regulate their electricity markets, making NERC’s move against EERC not only questionable but “dangerous.”

His comments follow NERC’s statement on Thursday, where the commission asserted that state governments have no authority over the national grid or power stations established under federal laws or operating with licences issued by NERC.

The clash comes amid the controversy triggered by EERC’s Multi-Year Tariff Order to MainPower, Enugu Electricity Distribution Company, mandating a cut in Band A tariffs. The announcement sparked backlash from Discos and generation companies, who condemned the decision.

Reacting to the growing debate, Minister of Power, Adebayo Adelabu, through his spokesman, Bolaji Tunji, clarified that the federal government will not support electricity subsidy removal for states.

Despite this, NERC doubled down on its rejection of EERC’s tariff slash, prompting Iromini to question whether NERC’s actions are effectively undermining the Electricity Act 2023.

“The Electricity Act 2023 is very clear. NERC cannot take a counter position solely on the fact that state governments off-take power from a generation company they didn’t invest in or control. By EA2023, the states are empowered to regulate their markets. NERC is no longer vested with central and overarching powers on regulation within independently regulated states,” Iromini told DAILY POST on Friday.