The Nigerian Independent System Operator (NISO) has intervened in the ongoing dispute between the Enugu State Electricity Regulatory Commission (EERC) and the Enugu Electricity Distribution Company (EEDC), following tensions over a state-ordered reduction in electricity tariffs.
The intervention comes amid concerns that the standoff could destabilise the Nigerian Electricity Supply Industry (NESI) and disrupt power delivery in the South-East.
The controversy began when the EERC, exercising powers granted under the Electricity Act 2023, issued a directive lowering Band A electricity rates within Enugu State to ₦160 per kilowatt-hour. This decision was aimed at providing relief to consumers facing rising living costs.
However, EEDC, which holds the licence to distribute electricity in the region, reportedly responded by cutting power supply to Enugu State by up to 50%. The company argued that the reduction was unsustainable given operational and market realities.
This drastic move prompted warnings from energy experts that prolonged curtailment could lead to severe power shortages, threaten commercial contracts, and trigger legal disputes within the national grid system.
Speaking during a stakeholders’ engagement in Abuja, NISO’s Managing Director and CEO, Abdu Mohammed, said the meeting was convened to “safeguard the integrity of contracts and prevent operational disruptions” between the Transmission Company of Nigeria (TCN) and the 11 electricity distribution companies (DisCos).
While acknowledging the EERC’s legal authority to set tariffs at the state level, Mohammed emphasised that such decisions must be coordinated to protect the financial equilibrium and technical stability of the electricity market.
“Fair electricity prices, sustainable business operations, and a stable electricity market are not mutually exclusive goals — they are interdependent,” Mohammed said. “We believe these goals can only be achieved through dialogue, transparency, and coordination among regulators, operators, and stakeholders.”
He stressed that unilateral tariff actions affecting service-level agreements, market settlements, or technical operations must be addressed collaboratively to avoid industry-wide instability.
The Electricity Act 2023 decentralised regulatory authority, allowing state commissions to set tariffs within their territories. However, it also preserved the roles of federal bodies like the Nigerian Electricity Regulatory Commission (NERC) and market operators such as NISO, which oversee national commercial and technical frameworks.
Industry analysts say the Enugu case is the first major test of this new regulatory landscape — and could set a precedent for how state and federal regulators navigate overlapping powers.
Dr. Henry Okechukwu, an energy policy analyst, told our correspondent:
“This is a defining moment for Nigeria’s electricity market. The decentralisation of regulation is good for competition and consumer protection, but it must be carefully balanced with national market stability. If every state sets tariffs without considering broader market implications, the entire system could be thrown off balance.”
The Abuja meeting was attended by representatives from EERC, EEDC, NERC, the Nigerian Bulk Electricity Trading Plc (NBET), the Federal Ministry of Power, and other key industry stakeholders.
Although initial sessions were public, discussions later moved behind closed doors as parties sought to agree on a resolution framework.
Sources familiar with the talks hinted that one compromise under consideration is a phased tariff adjustment — allowing consumer relief while giving EEDC room to recover operational costs.
Meanwhile, consumer rights advocates in Enugu have welcomed the state regulator’s tariff cut but urged both sides to avoid prolonged power rationing.
Mrs. Ifeoma Nwosu, spokesperson for the South-East Power Consumers Forum, said:
“Lower tariffs mean nothing if there’s no electricity to use. We expect all parties to find common ground quickly so that residents and businesses are not punished in this power struggle.”
For now, NISO has urged patience and pledged to continue mediating until an agreement is reached. The outcome of the talks could have long-term implications for electricity pricing, regulatory coordination, and market stability nationwide.
If unresolved, experts warn that the dispute could lead to further power supply cuts, revenue shortfalls, and reduced investor confidence in Nigeria’s electricity sector.
As one industry insider put it, “This is about more than Enugu — it’s about the future of Nigeria’s electricity market structure.”