A recent tariff adjustment in Enugu State has sparked alarm across Nigeria’s electricity market, prompting the Nigerian Independent System Operator (NISO) to step in.
The crisis began when the Enugu State Electricity Regulatory Commission (EERC) slashed Band A electricity tariffs for MainPower Electricity Distribution Limited from N209/kWh to N160/kWh, effective August 1, 2025.
Consequently, the Enugu Electricity Distribution Company cut power supply to the state by up to 50%.
Potential Market Disruptions
Speaking at a stakeholders’ meeting in Abuja on Wednesday, NISO Managing Director, Abdul Mohammed, warned that this sharp reduction in supply could disrupt operations at Transmission Company of Nigeria (TCN)–DisCo interfaces, where companies actively manage power transfer.
NISO’s Active Role
“Although state regulators can set tariffs under the Electricity Act 2023, NISO must maintain both technical stability and commercial balance in the market,” Mohammed said.
He explained that the meeting aimed to prevent any action from destabilising the market or undermining existing contracts.
Read Also: BA Drops 58 From Abuja–London Flight Over Faulty Door
“Decisions like this affect operations, dispatch, commercial arrangements, and the financial equilibrium of the entire electricity industry,” he added.
Collaboration For Stability
Mohammed emphasised that NISO approaches the situation neutrally.
“We recognise the powers of the Enugu State Electricity Regulatory Commission and the responsibilities of the Enugu Electricity Distribution Company.
We actively safeguard contractual obligations and ensure a reliable, financially sustainable market,” he said.
Finally, he stressed that fair electricity pricing, sustainable operations, and a stable market depend on each other.
Achieving all three requires ongoing dialogue, transparency, and coordination among all relevant institutions.
