The Nigerian Electricity Regulatory Commission (NERC) has clarified that the Enugu State Electricity Regulatory Commission (EERC) has no authority to fix electricity tariffs when the power is generated and transmitted from the national grid.
In a public notice issued late Thursday, NERC stated that while the 2023 Electricity Act grants states the power to regulate electricity within their jurisdictions, this does not override the National Assembly’s constitutional authority to legislate on electricity matters across the federation.
The statement, titled “The Application of Multiple Tariff Regimes in the Nigerian Electricity Supply Industry”, was issued in response to growing concerns over a recent tariff order by EERC which reduced electricity rates for Band A customers in Enugu to ₦160.4 per kWh.
NERC noted that the reduction was achieved by slashing the average generation tariff from ₦112.60 to ₦45.75 per kWh, implying a subsidy of ₦66.85 per kWh. This move, according to NERC, could distort the market and create financing gaps in the Nigerian Electricity Supply Industry (NESI).
“States do not have jurisdiction over the national grid or power stations operating under federal laws and NERC-issued licences,” the commission warned, adding that state regulators must either adopt the wholesale cost structure or provide subsidies to cover any tariff deviations.
The Commission emphasized that the Enugu order risks undermining the financial integrity of the electricity market, particularly regarding the cost of generation, transmission, and legacy obligations tied to grid-supplied power.
NERC further cited Section 34(1) of the Electricity Act, which tasks the Commission with promoting an efficient electricity market and ensuring optimal resource utilization—responsibilities it shares with state regulators like EERC.
The commission assured that it is currently engaging the Enugu regulatory body to address any misunderstandings and reaffirmed its commitment to ensuring full cost recovery within NESI in accordance with federal law.
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