• ‘Power supply won’t improve without takeover of DisCos, poor GenCos’
Nigerians are gradually inching towards the moment of anagnorisis as bank-backed reforms in the nation’s electricity distribution companies (DisCos) are revealing the true state and regulatory gaps among the Bureau of Public Enterprise (BPE), Nigerian Electricity Regulatory Commission (NERC) and handlers of the 11 utility companies.
At least, five firms – Abuja DisCo, Benin DisCo, Ibadan DisCo, Kaduna and Kano DisCos – have fallen into the hands of the banks they took credit from after they were unable to break even eight years since they were licensed.
Coming at a time of global energy crisis with diesel now hovering around N850 per litre, as government spend heavily to subside Premium Motor Spirit (PMS), most stakeholders, Monday, were divided between singing the praises of BPE and NERC, and blaming them for allowing the sector to fail in the first place.
The prevailing situation, which comes few days after NERC announced a contract-based electricity market, stakeholders said, may signal the worst days ahead for the sector, insisting that there already exists a breach of the national confidence reposed in BPE and NERC.
While the DisCos are jointly owned by individuals and the government, with the Federal Government represented on the board of all the companies, series of alarm being raised by industry players and consumers over the dismal performance of the firms have now come to limelight mainly because banks are moving to forcefully recoup their loans.
The payback loans notwithstanding, the DisCos are indebted heavily despite huge stimuli from the Federal Government and interventions from the Central Bank of Nigeria (CBN).
BPE and NERC had in a joint statement announced that the core share of 60 per cent of three DisCos’ were taken over due to default in their acquisition loans. The loans were taken in 2013 and drawn from Fidelity and AFREXIM Bank. New boards were swiftly approved while the Managing Directors of the DisCos were replaced.
Coming after takeover of Abuja DisCo and embattled challenges at Ibadan DisCo, NERC had tagged Jos, Benin, Kaduna and Kano as being distressed.
The Director-General of BPE, Alex Okoh and Executive Chairman of NERC, Sanusi Garba, had said: “Today, we were informed by Fidelity Bank that they have activated the call on the collateralised shares of Kano, Benin and Kaduna (Fidelity and AFREXIM) DisCos and that they have initiated action to take over the boards of these Discos and exercise the rights on the shares.
“Fidelity Bank’s action is a contractual and commercial intervention and is between the core investors in the DisCos and the lender. BPE is involved because of the 40 per cent shareholding of government in the DisCos.”
But stakeholders are worried that despite utility companies failing under the watch of BPE, which represents the Federal Government as well as NERC, which equally has all regulatory frameworks to make the sector perform, regulatory lapses contributed to the failure of the sector.
While electricity consumers pay for the inefficiencies of the sector under a Service Based Tariff arrangement, stakeholders are miffed that the current takeover by the banks remained pointer to poor corporate governance, technical and commercial losses as well as the dismal technical regulations in the power sector.
Recall that none of the DisCos, except Eko is currently able to meet minimum remittance order set by NERC, none of them has declared profit for eight years, none of them have also met the Key Performance Indicators (KPIs) set by the sector, leaving consumers to pay for minor repairs and maintenance due to the country’s energy situation.
While industries close down daily due to instability in the sector, energy expert at the University of Lagos, Prof. Yemi Oke, said BPE and NERC should share in the blame over poor performance of the DisCos.
“Who allowed those DisCos to fail? Who allowed the failed DisCos to do all the dirty things that brought them to their knees only to come out and scream that they are inefficient? Why is it only the DisCos that the banks are taking over on ground of insolvency? Did the GenCos not acquire assets with loan from banks? I’m told Mainstream, for instance, got a facility of about $120 million and they have since paid back everything and now making profit from their business,” Oke said.
According to him, Nigeria is in deep and serious energy crisis, adding that 80 per cent of the DisCos are technically insolvent; hence, the problems of the power sector may continue.
An energy lawyer, Madaki Ameh, stated that there was need for the total overhaul of the sector, insisting that the overhaul is long overdue and the takeover of the DisCos remained legally justified under the terms of the agreement, which brought them into the Nigerian Electricity Supply Industry (NESI).
He said the DisCos have not met any of the minimum thresholds set for them by government since privatisation despite the huge investment the government has continued to make in the sector.
“If you compare happenings in the power sector with the telecoms sector, you will see clearly that there were structural defects with the implementation of the privatisation policy in the power sector and that nothing short of a total take over of the DisCos and some of the non-performing GenCos would deliver the sort of efficiency required to transform the Sector in Nigeria,” Ameh said.
Consumer rights advocate, Adetayo Adegbemle, noted that while BPE and NERC were only doing what they should do, the move was overdue.
“However, we must not lose focus of the fact that most of these restructuring is forced by core investors’ debt to third party, which is the banks at this point. This has not said anything about the actual performance of DisCos as an entity,” Adegbemle said.
According to him, NERC and BPE must do their performance appraisals and issue verdicts based on that across the DisCos.
Public-Private Partnership (PPP) consultant, Joseph Tsavsar, who participated in the privatisation process, said the prevailing situation showed the failure of government in its obligations.
To him, the private operators have no incentives to operate as provided in the privatisation agreement, no adequate energy, no cost reflective tariff and no wheeling infrastructure to wheel the power generated to DisCos above 4,000 megawatts, the same as it was before privatisation.
Adding that there is no independent regulatory body to properly regulate the sector, Tsavsar said a combination of all the failures was causing the current challenges.
“If you want to blame the investors as many do today, it will not change anything, government has to change their way of approach first. I said it before, the banks will be affected as most of the loans are considered bad loans. Taking over the DisCos by the banks will not bring any change, they may only be able to service the loans for now.”
The Nigerian Consumer Protection Network has, however, applauded the takeover of the DisCos, describing it as the right step.
President, Nigeria Consumer Protection Network, Kunle Kola Olubiyo, said with the DisCos’ licences being of 10-year tenure, government failed to conduct a mid-term review, adding that the DisCos failed on all benchmark.
“In the prevailing circumstances, we are on the same page with relevant stakeholders in the present effort to clean up the mess and free the economy held by its jugular by the non-performing utilities,” he said. Guardian
Energy
MainPower Electricity to Commence Mobile MAP Metering – Customers to Get Metered Within 72 Hours
In a major step towards eliminating estimated billing and enhancing customer satisfaction, the MainPower Electricity Distribution Limited (MEDL) has announced plans to commence Mobile MAP Metering Program across its network, to fast-track the metering process for unmetered customers.
The metering initiative, which will kick off on Wednesday, July 30, 2025, with its Abakpa and Ogui Districts, offers customers the opportunity to get metered within 72 hours.
The Head, Corporate Communications, MEDL, Mr. Emeka Ezeh, who made this known in a release issued on Monday said that the Mobile MAP Metering Program aligns with the company’s commitment to bridging the existing metering gap, improving transparency in billing, and empowering customers with more control over their electricity consumption.
According to him, the program will be conducted in phases across various district offices, ensuring that all unmetered customers have access to quick and convenient metering options.
The company has urged customers in the selected districts to take advantage of the opportunity, emphasizing that accurate metering empowers users to take full control of their energy consumption and eliminates billing disputes.
Customers who are interested in the program are required to visit the designated locations with a copy of their electricity bill and a valid means of identification.
He also said that the approved meter prices range from N137,062.50 for a Single-Phase meter to N227,900.00 for a Three-Phase meter, and that the costs which are subject to monthly review are inclusive of 7.5% VAT.
Ezeh emphasized that payment for meters during the program would be with Debit Cards (ATM Cards) only, as cash transactions will not be accepted.
He assured customers that there are no extra or hidden charges involved in the process other than the payment for the meter and encouraged them to report any form of extortion by using its established whistle blowing line (08146026678).
The company encouraged unmetered customers within the specified districts to take advantage of this metering program to get metered faster.
Ezeh stated that while this mobile metering exercise is ongoing, the regular MAP metering process remains available. Customers who are unable to participate in the mobile program can still walk into any of the company’s district offices or visit the official website to apply for a meter through the standard application process.
“Our goal is to ensure more of our customers are metered and are able to manage their energy consumption” Ezeh added.
Energy
JUST IN – Enugu Electricity Regulatory Commission Issues New Tariff, Crashes Band A from N209 to N160
••• Freezes Bands B, C, D and E Tariffs
The Enugu State Electricityv Regulatory Commission (EERC), has issued a new tariff to MainPower Electricity Distribution Limited, the utility that succeeded Enugu Electricity Distribution Company, (EEDC), for electricity distribution in the state, reviewing electricity cost for Band A from N209/ kWh (per kiloWatt) to N160 kWh, effective from August 1, 2025.
This was contained in the Commission’s Order No. EERC/2025/003 entitled “Tariff Order for MainPower Electricity Distribution Limited 2025, issued by the Commission at the weekend.
It said its decision was cost reflective, insisting that tariff must reflect power generation subsidy by the federal government for the benefit of electricity consumers.
EERC predicated its action on the Enugu State Electricity Law 2023, which empowers the Commission to regulate the activities of operators in power generation, transmission, and distribution in and exclusively for the state.
This Law signed by Governor Peter Mbah of Enugu State in September 2023, is pursuant to the 2023 Constitutional Amendment which firmly established the legislative authority of the states on electricity matters within their states. This was followed by the passage of the Electricity Act 2023, that repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, and empowers states to regulate their own electricity markets.
Throwing more light on the development, EERC Chairman, Chijioke Okonkwo, said that the reduction in tariff became imperative following the Commission’s review of MainPower’s tariff and licence applications as the new subsidiary company (SubCo) that operates in Enugu State.
“We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94.
“The price is low because the Federal Government has been subsidising electricity generation cost which charges only N45 out of the actual cost of N112. That was how we came about the average tariff of N94 as cost reflective tariff at our level as a subnational electricity market.
“Breaking this across the various tariff bands means that Band A will be paying N160 while other Bands B, C, D, and E are frozen.
“Band A, at N160 will help MainPower to manage the rate shock, and if the subsidy is removed, the savings will assist them in stabilising the tariff over a defined period of time. Nevertheless, at all times, the tariff will be cost reflective and will not require any state subsidy,” Okonkwo stated.
He noted, however, that the N160 Band A tariff could be difficult to sustain should the Federal Government remove the generation tariff subsidy currently being enjoyed by electricity consumers throughout the country, as tariffs would most likely rise beyond these new rates.
“But until then, it is only right that Ndi Enugu – Band A customers enjoy the reduced tariff effective August 1, 2025,” the Commission’s Chairman added.
Meanwhile, EERC also said it had put in place monitoring and evaluation systems and guidelines to ensure MainPower’s compliance with service commitments so that its customers do not pay more for less power.
“MainPower is obliged to publish daily on its website a rolling seven-day average daily hours of supply on each Bank A feeder no later than 9am of the next day.
“Where MainPower fails to deliver on the committed level of service on Band A feeder for two consecutive days, MainPower shall report this to the Commission within 24 hours.
“Where MainPower fails to meet the committed service level to a Band A feeder for seven consecutive days, the feeder shall be automatically downgraded to the recorded level of supply.
“The Commission is committed to working with industry developers, investors, customers and Stakeholders to develop and implement strategies and solutions to provide access and improve electricity services to all the citizens of the state, as this is a win for the establishment,” the Commission concluded.
The Enugu State Electricity Regulatory Commission (EERC), has issued a new tariff to MainPower Electricity Distribution Limited, the utility that succeeded Enugu Electricity Distribution Company, (EEDC), for electricity distribution in the state, reviewing electricity cost for Band A from N209/ kWh (per kiloWatt) to N160 kWh, effective from August 1, 2025.
This was contained in the Commission’s Order No. EERC/2025/003 entitled “Tariff Order for MainPower Electricity Distribution Limited 2025, issued by the Commission at the weekend.
It said its decision was cost reflective, insisting that tariff must reflect power generation subsidy by the federal government for the benefit of electricity consumers.
EERC predicated its action on the Enugu State Electricity Law 2023, which empowers the Commission to regulate the activities of operators in power generation, transmission, and distribution in and exclusively for the state.
This Law signed by Governor Peter Mbah of Enugu State in September 2023, is pursuant to the 2023 Constitutional Amendment which firmly established the legislative authority of the states on electricity matters within their states.
This was followed by the passage of the Electricity Act 2023, that repealed the Electric Power Sector Reform Act, 2005, and introduced major changes such as the separation of distribution and supply operations, and empowers states to regulate their own electricity markets.
Throwing more light on the development, EERC Chairman, Chijioke Okonkwo, said that the reduction in tariff became imperative following the Commission’s review of MainPower’s tariff and licence applications as the new subsidiary company (SubCo) that operates in Enugu State.
“We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94.
“The price is low due to some reasons and including the fact the Federal Government is subsidising electricity generation cost which comes to a cost of about ₦45 out of the actual cost of ₦112 for Enugu State. That was how we came about the average tariff of ₦94 as cost reflective tariff at our level as a subnational electricity market.
“The actual PPA cost of any power purchase made by Mainpower out side the one subsidized by Federal Government, through the Nigerian Bulk Electricity Trader (NBET) will trigger automatic tariff adjustment to accommodate the PPA price because it will not be subsidized by the Federal Government”.
“Breaking this across the various tariff bands means that Band A will be paying ₦160 while other Bands B, C, D, and E are frozen.
“Band A, at ₦160 will help MainPower to manage the rate shock, and if the subsidy is removed, the savings will assist them in stabilising the tariff over a defined period of time. Nevertheless, at all times, the tariff will be cost reflective and will not require any state subsidy,” Okonkwo stated.
He noted, however, that the ₦160 Band A tariff could be difficult to sustain should the Federal Government remove the generation tariff subsidy currently being enjoyed by electricity consumers throughout the country, as tariffs would most likely rise beyond these new rates.
“But until then, it is only right that Ndi Enugu – Band A customers enjoy the reduced tariff effective August 1, 2025,” the Commission’s Chairman added.
Meanwhile, EERC also said it had put in place monitoring and evaluation systems and guidelines to ensure MainPower’s compliance with service commitments so that its customers do not pay more for less power.
“MainPower is obliged to publish daily on its website a rolling seven-day average daily hours of supply on each Bank A feeder no later than 9am of the next day.
“Where MainPower fails to deliver on the committed level of service on Band A feeder for two consecutive days, MainPower shall report this to the Commission within 24 hours.
“Where MainPower fails to meet the committed service level to a Band A feeder for seven consecutive days, the feeder shall be automatically downgraded to the recorded level of supply.
“The Commission is committed to working with industry developers, investors, customers and Stakeholders to develop and implement strategies and solutions to provide access and improve electricity services to all the citizens of the state, as this is a win for the establishment,” the Commission concluded. GMTNewsng
Two members of the Abia State House of Assembly have lauded Aba Power for the utility’s ongoing aggressive distribution of smart meters in its coverage area.
Aaron Uzodike, chairman of the state legislative Committee on Power and Utilities, and Uche Onye, a member of the committee, made the commendation in two separate interviews with journalists after visiting the Aba Power headquarters in the Osisioma Industrial Layout in Aba to inspect the first batch of 20,000 smart meters from China which are being distributed as the company resumed its free mass meter roll-out last week.
“We can’t deny the evidence of our own eyes”, Uzodike stated. “They are not just 20,000 meters available as Aba Power pledged to members of the Abia State House of Assembly for distribution within one month when we invited them on two occasions to Umuahia, but are also state of the art.
“What is more, they are being given to customers free of charge, though it is costing Aba Power at least N3.4 billion for every 20,000 units of one-phase meter and three-phase meter”.
The Committee chairman on Power and Public Utilities explained that the electricity company was invited to the House of Assembly following a petition by three persons purporting to be members of the Abia Electricity Consumers Forum, an unregistered organization, claiming that there were not enough prepaid meters in the territory covered by the utility.
“We are delighted that the 20,000 smart meters being distributed now are from just one firm called Eves Metering, a Chinese firm”, the legislator remarked.
Three other metering firms are supplying at least 20,000 units each, and they include an indigenous one named Kayz Consortium which has moved its machines and equipment to the Geometric Power premises in the Osisioma Industrial Layout to start assembling them there.
Uzodike praised Geometric Power for assisting Kayz to airfreight the meters which increased the costs of providing the smart meters, but noted that “it is a manifestation of the seriousness which the Geometric Power attaches to the smart meter installation project”.
On his part, The Honourable Onye expressed satisfaction that Aba Power has set a target of providing smart meters to 100,000 customers this year alone.
He welcomed the new system of providing a compound of “four flats with four state-of-the-art prepaid meters and a compound of eight flats with eight smart meters, unlike in the past when the entire compound would be saddled with only one meter, thus creating controversy, confusion and disagreements which sometimes resulted in physical fights by the flat occupants.
“The new system makes for transparency and responsible use of electricity”.
Onye also commended Aba Power for providing meters to customers on “a feeder by feeder basis and from end to end because it makes for orderliness, transparency, trust, and peace”.
Customers on the Aba-Owerri Feeder are being given free meters, and the areas under it include Umuode Village, Tonimas Junction, the Old Aba-Owerri Expressway, and the Power Line Area.
There are 31 feeders in the Aba Ring-fenced Area comprising nine of the 17 local government areas in Abia State. Four other feeders were fully provided with smart meters during the first phase of the mass metering campaign which ended four months ago.
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