When the lights went out in parts of Enugu, few suspected a tariff cut was to blame.
But behind the four-day blackout lies a financial standoff: after a regulatory decision slashed Band A electricity rates, Mainpower Electricity Distribution Limited (MEDL) saw its supply halved by its parent company, Enugu Electricity Distribution Company (EEDC), in a bid to curb mounting losses.
The Enugu Electricity Distribution Company (EEDC), MEDL’s parent supplier, cut power allocation by 50%—a move that triggered the blackout.
Tariff Cut Fallout
This decision followed the Enugu Electricity Regulatory Commission’s (EERC) directive to reduce the Band A tariff from ₦209.50/kWh to ₦160.40/kWh.
Although the reduction aimed to ease pressure on consumers, it created a projected revenue shortfall of over ₦1 billion for EEDC.
As a result, EEDC slashed supply to MEDL to curb anticipated losses.
Supply Chain Breakdown
Unlike some distributors, MEDL doesn’t draw power directly from the National Grid.
Instead, it relies entirely on EEDC, which holds the energy contract with the Nigerian Bulk Electricity Trading (NBET).
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This dependency left MEDL with no alternative but to manage dwindling supply and rising customer complaints.
Urgent Talks Underway
Consequently, the supply cut severely limited MEDL’s ability to meet customer demand.
The company initially stayed silent, but later admitted it delayed communication because it received detailed tariff information late.
Now, MEDL has begun engaging with EEDC, EERC, the Nigerian Electricity Regulatory Commission (NERC), NBET, and the Nigerian System Operator (NISO) to resolve the crisis.
The company also apologised to customers and assured them that it expects a resolution within 48 hours.
In the meantime, Enugu residents continue to endure blackouts—caught in the crossfire of policy decisions, financial risk, and supply chain dependence.
