The management of the Mainpower Electricity Distribution Limited (MEDL) says parts of Enugu are facing power outage in various parts of the state following a recent tariff cut.
On July 21, the Enugu Electricity Regulatory Commission (EERC) reduced the Band A electricity tariff in Enugu state to N160/kWh from N209, sparking concerns among electricity distribution companies (DisCos) and electricity generation companies (GenCos).
In a notice on Monday, Mainpower Electricity said the power outage, which have lasted for the past four days, was due to a significant drop in energy allocation from its parent company, Enugu Electricity Distribution Company (EEDC) Plc.
According to the DisCo, EEDC determined that enforcing the cut would lead to a monthly loss of more than N1 billion, making it unable to meet its market obligations.
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“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),” the statement reads.
“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.
“Upon receipt of the Tariff Order, MEDL, by obligation, promptly updated EEDC (our energy supplier).
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“After analyzing 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, Mainpower Electricity said EEDC made the difficult decision to reduce the volume of energy supplied to mitigate the losses.
“This has unfortunately resulted in MEDL receiving only about 50% of its usual energy allocation, significantly affecting our ability to serve some of our esteemed customers,” the DisCo said.
“It is important to clarify that MEDL does not receive electricity directly from National Grid. Instead, we rely solely on EEDC, which holds the vesting contract agreement with the Nigerian Bulk Electricity Trading (NBET), the organization responsible for electricity bulk trading.
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“We deeply regret the inconvenience this situation has caused our valued customers. Please be assured that discussions are ongoing with key stakeholders at the state and federal levels (including EEDC, EERC, NERC, NISO, and NBET) to quickly resolve this issue.”
The company said it expects a resolution within the next 48 hours or shortly after, noting that the communication was delayed.
Mainpower Electricity said the delay resulted from the short notice with which it received the full details of the development.
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