The lingering clash between state governments and electricity distribution companies (Discos) over who has the legal authority to fix electricity tariffs has prompted the Federal Government to wade in.
The Nigerian Electricity Regulatory Commission (NERC) confirmed on Thursday that it has summoned all major stakeholders to a high-level meeting scheduled for next week in Lagos, The PUNCH reports.
At the heart of the crisis is the interpretation of the Electricity Act, 2023 (Amended). State governments, through the Forum of Commissioners for Power and Energy in Nigeria (FOCPEN), maintain that the law empowers them to regulate their electricity markets, including setting tariffs. But Discos, under the Association of Nigerian Electricity Distributors (ANED), insist that while states can regulate electricity within their borders, they have no power to fix prices for supply from the national grid.
The tension escalated in July after the Enugu Electricity Regulatory Commission ordered a reduction in Band A tariff from N209/kWh to N160/kWh, directing MainPower Electricity Distribution Limited to implement the cut from August 1, 2025. MainPower’s parent company, Enugu Electricity Distribution Company, swiftly slashed supply to the state by 50 percent, claiming the tariff slash would lead to monthly losses of over N1bn.
The move sparked sharp reactions. Gencos, including the Niger Delta Power Holding Company, rejected the state tariff order, arguing that only NERC has authority over grid-supplied electricity. ANED’s Executive Director, Sunday Oduntan, warned that if states continued to slash tariffs arbitrarily, the entire power sector risked collapse.
“The law is clear. States can fix tariffs only when they generate, transmit, and distribute electricity within their borders. They cannot dictate the cost of power from the national grid,” Oduntan said.
But state commissioners pushed back, accusing the Discos of profiteering. Enugu’s Special Adviser on Power, Joe Aneke, argued that the state’s tariff order only applied to distribution costs and did not tamper with generation or transmission charges. “If the figures don’t add up, states have the right to intervene in the interest of their people,” he said.
Caught in the middle, NERC is now stepping in to de-escalate the crisis. Its spokesman, Dr. Usman Abba-Arabi, said all regulators, Discos, Gencos, and stakeholders have been invited. “It’s a forum where industry issues will be discussed and solutions proffered,” he noted, stressing that the meeting will be held behind closed doors.
As things stand, Enugu residents remain stuck between conflicting regulators. While the state insists on the N160/kWh tariff, MainPower has reverted to the old N209/kWh rate, prompting threats of sanctions from the Enugu Electricity Regulatory Commission.
With states insisting on their constitutional right to regulate electricity and Discos warning of a sector-wide collapse, next week’s Lagos meeting could determine the future of Nigeria’s fragile power market.
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