The Nigerian Independent System Operator (NISO) on Wednesday stepped into the escalating dispute between the Enugu State Electricity Regulatory Commission (EERC) and the Enugu Electricity Distribution Company (EEDC) over the sharp reduction in electricity tariffs in Enugu State.This intervention follows EEDC’s reported reduction of the state’s power supply by up to 50 per cent in response to the tariff cut ordered by EERC.
The tariff adjustment, which lowered Band A rates to N160 per kWh, has sparked criticism from federal regulators and industry stakeholders who warn that such unilateral decisions without industry-wide coordination threaten Nigeria’s electricity sector’s financial viability and operational stability.
At a stakeholders’ meeting in Abuja, NISO managing director/CEO, Engr. Abdu Mohammed emphasised that the gathering was convened to protect the stability of the national electricity market. He noted the importance of preserving the integrity of contracts and preventing disruptions at the interface between the Transmission Company of Nigeria (TCN) and distribution companies like EEDC.
Since August 1st this year, some parts of Enugu have been living in darkness due to a disco company’s recalcitrant attitude as a result of the 50 per cent cut in electricity supply to Mainpower Electricity Distribution Company, the sub-company of EEDC, following Enugu State’s electricity market decentralisation
Mohammed acknowledged that while the Electricity Act 2023 allows state regulators to set tariffs within their jurisdictions, NISO’s mandate under the law, Market Rules, and Grid Code requires it to maintain commercial balance and technical stability across the market.
He stressed that any action materially impacting market operations, settlements, or service agreements must be negotiated collaboratively to safeguard the industry’s sustainability.
“We understand the statutory authority of the Enugu State Electricity Regulatory Commission and the operational responsibilities of the Enugu Electricity Distribution Company. However, our mandate is to ensure the integrity of the market’s settlement framework and to maintain a balanced, financially sustainable, and technically reliable electricity supply environment for all stakeholders,” Mohammed said.
He called for transparency, mutual respect, and coordination among regulators, operators, and stakeholders to achieve fair electricity pricing, sustainable operations, and a stable market, which are inherently interdependent goals.T
The NISO intervention aims to prevent further disruption and foster dialogue to resolve the tariff dispute without jeopardising the stability of the national electricity supply industry.
