The Forum of Commissioners of Power and Energy in Nigeria has thrown its weight behind the decision of the Enugu State Electricity Regulatory Commission to slash electricity tariffs for Band A customers served by MainPower Electricity Distribution Limited.

The move, which has drawn criticism from power generation companies, received formal backing in a statement issued Wednesday.

The statement was jointly signed by FOCPEN Chairman and Cross River State Commissioner for Power and Renewable Energy, Prince Eka Williams, and the Forum’s Secretary and Benue State Commissioner for Power, Renewable Energy, and Transport, Barr. Omale Omale.

FOCPEN emphasized its support for regulatory independence at the subnational level and described the tariff reduction as a pro-consumer move aimed at improving affordability and service accountability in the electricity sector.

The statement read, in part, “It is crucial to understand that Enugu State’s actions are fully aligned with the provisions of the Constitution of the Federal Republic of Nigeria, the Electricity Act 2023, and Enugu State electricity laws and regulations. These legal frameworks empower States to regulate their intra-state electricity markets, including determining and implementing electricity tariffs within their jurisdiction, which are fair to electricity consumers and sufficient to allow licensees to recover their operating expenses and investments.

“FOCPEN wishes to also clarify that the EERC’s tariff order followed a comprehensive and meticulous review process that involved a thorough examination of the capital expenditure (Capex) and operational expenditure (OpEx) assumptions of MainPower Electricity Distribution Company, the State electricity distribution company. This rigorous assessment was conducted using data and information provided by the distribution company itself. EERC also carried out a rigorous assessment of MainPower’s existing customer tariff classification and regulatory asset base,”

The group further noted that Enugu State’s decision to reduce Band A tariffs was based on its unique market conditions and regulatory assessments, stressing that this move should not be seen as a precedent or standard for other states across the Federation.

FOCPEN also sought to reassure investors in the Nigerian Electricity Supply Industry, stating that state governments are not pursuing arbitrary tariff reductions or reliant on unsustainable federal subsidies to support electricity pricing.

The EERC recently approved a new tariff structure for MainPower Electricity Distribution Limited, successor to the Enugu Electricity Distribution Company, reducing the Band A rate from N209 per kilowatt-hour to N160/kWh, effective August 1.