The Electricity Act fallout has led to Gencos and Discos raging against states starting to cut electricity tariffs. Enugu State’s Enugu Electricity Regulatory Commission reduced the Band A tariff from N209/kWh to N160/kWh, effective August 1, 2025, sparking controversy.
Gencos claims that the industry is owed over N5 trillion and warn that this move may cripple the sector. Enugu State insists that its decision is cost-reflective and based on Federal Government subsidy.
Other states like Ondo, Plateau, and Lagos are considering similar tariff cuts, while Ekiti will stay with NERC’s tariff structure for now.
Discos warns states must pay the shortfall without delay if they cut tariffs.
Experts question Enugu’s assumption of ongoing Federal Government subsidy for Band A customers.
The situation remains unfolding, with potential impacts on investors and the power sector’s sustainability.