State governments have intensified their push to bypass electricity Distribution Companies (DisCos), seeking direct power purchases from Generation Companies (GenCos). The forum behind the demand is the Forum for Commissioners of Power and Energy in Nigeria (FOCPEN).
This move aims to invoke provisions of the 2017 Eligible Customer Regulations, allowing underserved consumers—sometimes entire states—to engage in power purchase agreements (PPAs) with GenCos through the Nigerian Bulk Electricity Trading Plc (NBET), thereby sidestepping opaque DisCo-backed distribution chains.
FOCPEN’s demand followed the Enugu Electricity Distribution Company (EEDC) reducing supply to Enugu State. The cut-off stemmed from EEDC’s contention with its own subsidiary, Main Power Electricity Distribution Ltd, over a tariff drop from ₦209/kWh to ₦160/kWh, causing EEDC to stop power allocations—arguably causing widespread blackout.
In a scathing release, FOCPEN condemned the action as “an attack on consumer rights,” accusing DisCos of wielding their power to arbitrarily penalise entire regions.
“FOCPEN views this not as a regulatory disagreement, but a declaration of war on the people of Enugu State,” the statement read.
“DisCos now have the power to blackmail both regulators and consumers—setting a dangerous precedent.”
FOCPEN urged:
Immediate Ministerial intervention. Directed at Minister of Power Adebayo Adelabu, FOCPEN implored him to restrain both NERC and EEDC from carrying out blackout actions.
Regulatory sanctions on EEDC. FOCPEN called for NERC to penalise the distribution company for contravening licence obligations and undermining national electricity policy, including the new State Electricity Markets (SEMs) model.
New regulations for SubCos. FOCPEN recommended NERC formalise rules allowing SubConcessionaires (SubCos) to sign bilateral wholesale contracts with GenCos, empowering states and local operators to secure electricity independently.
“DisCos with hold-hold power in the system should not have the final say,” the forum added.
“National energy access cannot be hostage to unilateral corporate decisions.”
The demand comes as Nigeria struggles to meet energy demands in many states due to DisCos’ poor performance—fuelled by high losses, inadequate infrastructure, and financial constraints.
FOCPEN’s call also aligns with broader decentralisation efforts under the Electricity Act 2023, intended to unbundle the sector and promote regionalised models—like State Electricity Markets—enabling states to control their energy mix.
A sector economist shared with our correspondent:
“This is not merely a dispute over tariffs—it’s a strategic shift away from centralised monopoly toward more accountable, responsive energy supply mechanisms.”
NERC’s move is critical: Will the regulator side with FOCPEN and grant licensing flexibilities? Or enforce DisCo’s traditional control?
Government codification needed: FOCPEN seeks formal policy backing for SEMs and SubCo-GenCo direct PPAs to operate at scale.
Model for other states? Already watching closely, other regions may replicate Enugu’s strategy if it succeeds.