The Enugu Electricity Regulatory Commission (EERC) has launched a firm rebuttal against the Nigerian Electricity Regulatory Commission (NERC), asserting its constitutional authority to regulate electricity tariffs within Enugu State. This comes in the wake of a directive from NERC that states should not interfere with electricity tariffs for services under federal licenses, following EERC’s move to cut the Band A electricity tariff from N209/kWh to N160/kWh.
The standoff underscores a brewing tension between federal and state electricity regulators after the enactment of the Electricity Act 2023, which decentralised electricity regulation in Nigeria, granting states the power to manage their own electricity markets.
In a detailed statement released on Monday, EERC challenged the legal interpretation put forward by NERC, claiming that the federal regulator misrepresented constitutional provisions by asserting control over all aspects of electricity regulation, including distribution.
EERC stated, “Only States have the constitutional right to make laws with respect to electricity distribution,” referencing Paragraph 14(b) of Part II of the Second Schedule to the 1999 Constitution (as amended). The commission added that NERC’s ongoing oversight of electricity distribution is a remnant of Nigeria’s former centralised system, which the 2023 constitutional amendment and Electricity Act have now overhauled.
EERC argued that its Tariff Order (Order No. EERC/2025/003), which reduced Band A tariffs, was the result of a rigorous, transparent process based on cost data provided by MainPower Electricity Distribution Limited (MEDL). It stated the methodology fully accounted for national generation and transmission costs regulated by NERC, including federal subsidies passed through NBET (the bulk electricity trader).
“This Tariff Order is not an act of political populism,” the commission emphasized, adding that its actions were rooted in law and best regulatory practice.
EERC also cited NERC’s own public notice, which acknowledged that states with full regulatory control may develop and implement their own tariff methodologies. It questioned the purpose of NERC’s continued intervention, claiming it undermines the independence of subnational electricity markets and contradicts the spirit of the 2023 reforms.
The commission warned against what it called “usurpation” of state rights, stating that federal oversight should not extend to areas now under state jurisdiction. “If states simply adopt NERC tariffs without review, they effectively surrender regulatory autonomy while still bearing the financial burden of subsidies,” EERC said.
However, NERC and representatives from the distribution companies (Discos) maintain that tariff decisions must reflect the true cost of generation. Sunday Oduntan, spokesperson for the Discos, argued that Enugu has no right to alter the tariff unless it assumes responsibility for generation. “If Enugu wants full control, let it start generating its own power,” he said, referencing the state’s dormant coal resources.
The growing debate reflects a larger issue of federalism and energy reform in Nigeria. With several states now asserting control under the new electricity law, industry watchers say clarity is needed to avoid market fragmentation and investor uncertainty.
While EERC reiterated its willingness to cooperate with NERC for a stable electricity sector, it firmly asserted its legal mandate. “We will not undermine the rule of law or our obligation to protect Enugu consumers through proper oversight,” the statement concluded.
As the power sector navigates this regulatory transition, the clash between NERC and EERC may set the precedent for how states assert autonomy in Nigeria’s evolving electricity landscape.