![The Central Bank of Nigeria, CBN. [PHOTO CREDIT: Ehud Kaduna]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2022/01/20200913_161409-scaled-e1652250793565.jpg?fit=2387%2C1702&ssl=1)
Mainpower Electricity Distribution Limited (MEDL) has said the power outages experienced over the past four days in some parts of Enugu State is due to a significant drop in energy allocation from its parent company, Enugu Electricity Distribution Company PLC (EEDC).
MEDL, in a statement by its management on Monday, said this development is a result of the recent issuance of a new tariff order by the Enugu Electricity Regulatory Commission (EERC), which reduced the tariff for Band A customers from N209.50/kWh to N160,40/kWh.
|
|
“Mainpower Electricity Distribution Limited (MEDL) wishes to inform its esteemed customers in parts of Enugu State who have been experiencing power outages over the past four days that the situation is due to a significant drop in energy allocation from our parent company, Enugu Electricity Distribution Company PLC (EEDC).
“This development is a result of the recent issuance of a new Tariff Order to Mainpower by the Enugu Electricity Regulatory Commission (EERC). The Order reduced the tariff for Band A customers from N209.50/kWh to N160,40/kWh,” the statement said.
|
|
|
|---|
It explained that upon receipt of the tariff order, MEDL, by obligation, promptly updated EEDC its energy supplier, adding that after analysing the implications of the new tariff, EEDC concluded that implementing it would result in a monthly loss of over N1 billion, which makes it impossible for EEDC to meet her obligations to the market.
Consequently, it said to mitigate these losses, EEDC made the difficult decision to reduce the volume of energy supplied to MEDL.
This, the statement said, has unfortunately resulted in MEDL receiving only about 50 per cent of its usual energy allocation, significantly affecting its ability to serve some of its esteemed customers.
MEDL said it does not receive electricity directly from National Grid. Instead, it relies solely on EEDC, which holds the vesting contract agreement with the Nigerian Bulk Electricity Trading (NBET), the organisation responsible for electricity bulk trading.
“We deeply regret the inconvenience this situation has caused our valued customers.”
MEDL assured that discussions are ongoing with key stakeholders at the state and federal levels (including EEDC, EERC, Nigeria Electricity Regulatory Commission (NERC), Nigerian Independent System Operator (NISO), and NBET to quickly resolve this issue.
“We are hopeful that a resolution will be reached within the next 48 hours or soon thereafter. We also acknowledge that this communication is coming later than expected. The delay was due to the short notice with which we received the full details of the development.
“We appeal for your continued patience, calm, and understanding as we work diligently with the relevant authorities to restore normal service as soon as possible,” the statement said.
MainPower is an electricity company in charge of power supply in Enugu State.
In October 2024, EERC licensed Mainpower Electricity Distribution Limited to distribute power in Enugu State.
This followed the complete transfer of regulatory oversight to the commission by the NERC.
The National Assembly, in 2023, passed 16 constitutional amendment bills, one of which allowed states to generate, transmit and distribute electricity.
READ ALSO: Afreximbank leads $4 billion refinancing deal for Dangote Refinery with $1.35 billion contribution
The Enugu State Government, consequently, enacted the Enugu State Electricity Law, 2023, which established the Enugu State Electricity Regulatory Commission, an agency responsible for the distribution and regulation of power in the state.
In June 2024, President Bola Tinubu assented to the electricity bill, which authorises states, companies, and individuals to generate, transmit and distribute electricity.
In April this year, NERC, began handing Enugu’s commission the regulatory power over the state’s electricity market.
The handover process, which had a six-month transition period, was completed in October 2024.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
