A brewing power struggle between Nigerian states and electricity distribution companies (Discos) has escalated, as a sharp tariff dispute has triggered prolonged blackouts in Enugu State. The crisis, sparked by the Enugu Electricity Distribution Company’s (EEDC) drastic cut in energy supply to MainPower Electricity Distribution Limited, has set the stage for a nationwide shake-up in electricity governance.
The fallout follows a tariff reduction imposed by the Enugu Electricity Regulatory Commission (EERC), which slashed Band A electricity rates from ₦209.50/kWh to ₦160.40/kWh. EEDC, which supplies power to MainPower for distribution across Enugu, responded by halving its energy supply—plunging several communities into darkness for four days.
In a swift and stern reaction, the Forum of Commissioners of Power and Energy in Nigeria (FOCPEN) condemned the cuts as “blackmail” and reaffirmed state authority under the Electricity Act to regulate and license new Discos within their jurisdictions.
“This is cheap blackmail to arm-twist the regulatory authority in Enugu,” said Omale Omale, Secretary of FOCPEN and Benue State’s Commissioner of Power. “States will not be intimidated. The decentralisation of Nigeria’s power sector has come to stay.”
MainPower defended its position, citing that it updated EEDC after the EERC tariff revision, but the new rates would lead to a monthly loss of over ₦1 billion. In response, EEDC slashed its energy allocation to MainPower by 50%, significantly affecting customer service.
“This development is purely economic,” said a MainPower spokesperson. “We cannot continue operating at a loss due to tariff adjustments.”
EEDC, through internal communication, argued that it holds the vesting contract with the Nigerian Bulk Electricity Trading (NBET) and cannot bear the burden of revenue shortfalls resulting from politically-driven price cuts.
Yet, state regulators insist that cost-reflective tariffs can be achieved without compromising service or investor confidence. FOCPEN emphasized that if Discos feel economically threatened, they should present their books for review.
“Let them open their books,” Omale argued. “Cost-reflective tariffs are not guesswork. Every charge from generation to transmission must be transparently accounted for.”
While the Nigerian Electricity Regulatory Commission (NERC) and the Ministry of Power maintain that tariff integrity is essential for sector sustainability, Enugu’s state regulator defends its actions, stating the tariff cut only affects the distribution path—not generation or transmission.
Adding to the debate, PowerUp Nigeria convener, Adetayo Adegbemle, warned that Enugu’s approach may deter future investments.
“This welfarist move may be counterproductive,” he said. “Investors seek marginal profit, not rent-seeking subsidies. Enugu must rethink its strategy.”
The standoff has drawn federal attention, with Power Minister Adebayo Adelabu expected to meet stakeholders for resolution talks. However, the timing has left many frustrated as blackout conditions persist.
The broader implication of this face-off may redefine Nigeria’s power sector. FOCPEN has already urged state governments to begin licensing new Discos to end monopoly dominance.
“Like universities and the petroleum sector, decentralisation must thrive,” Omale concluded. “Let states grant licenses and let competition improve service and affordability.”
Meanwhile, the Association of Nigerian Electricity Distributors (ANED) maintains a neutral stance, stating they welcome competition but warn that no investor will operate below cost.
As stakeholders await resolution, millions of Nigerians in Enugu remain in limbo—caught in the crossfire of a historic energy reform battle that could reset the national electricity framework.