- EEDC reportedly cut electricity supply to Enugu by 50 per cent following the state’s Band A tariff reduction
- NISO warned that tariff disputes could affect TCN’s capacity transfer service level agreements with distribution companies nationwide.
The Nigerian Independent System Operator (NSIO) has waded into the disagreement between the Enugu State Electricity Regulatory Commission (EERC) and the Enugu Electricity Distribution (EEEDC) Company over the recent tariff reduction in the state.
The dispute began on July 21 when the state regulator announced a drop in the Band A tariff from N209/kWh to N160/kWh.
Distribution and generation companies expressed concerns over the move, while the commission maintained it was a response to widespread supply shortages in some communities.
At a stakeholder meeting in Abuja on Wednesday, the managing director of NISO, Abdu Mohammed, cautioned that the impasse could unsettle the country’s power market.
Mohammed explained that his intervention followed the order issued by the Enugu regulator to revise electricity charges in its territory.
“This development, while within the remit of state-level regulatory authority under the Electricity Act 2023 (as amended), has naturally drawn significant attention from different quarters of our industry,” he said.
He disclosed that EEDC had informed NISO it was cutting power supply to the state by as much as 50 per cent in reaction to the tariff cut.
According to him, such a measure could disrupt operations at the Transmission Company of Nigeria and affect power transfer service agreements with distribution firms.
The NISO boss added that the development also raised concerns about how local regulatory actions could impact dispatch schedules, commercial arrangements, and the overall financial health of the electricity supply industry.
“Our role in convening this discussion was grounded in both our market administration and system operations mandated through the Electricity Act 2023, the market rules and the grid code,” he noted.
He said the grid code empowered NISO to manage the wholesale electricity market, enforce compliance with market rules, and ensure contractual obligations were met.
Part of that responsibility, Mohammed added, was to protect the market’s financial integrity, call consultations when needed, and monitor operational commitments such as system reliability and service levels at TCN–DisCo interfaces.
He emphasised that NISO had a dual role of safeguarding commercial balance and maintaining technical stability in the market, both of which could be affected by the current face-off.
“Let me be clear from the outset, NISO approach this discussion with neutrality, respect, and an open mind; we are not here to question the authority of the regulator or the operators,” he said.
“We fully recognise the statutory powers of the Enugu State Electricity Regulatory Commission to regulate activities within its jurisdiction.
“We equally acknowledge the licence and operational responsibilities of the Enugu Electricity Distribution Company in serving its customers.”
He stressed that NISO’s statutory mandate as administrator of the wholesale market gave it a quasi-regulatory role in overseeing market operations.