The Nigerian Independent System Operator has stepped into the simmering dispute between the Enugu State Electricity Regulatory Commission and the Enugu Electricity Distribution Company over a tariff cut in the state, warning that the standoff could destabilise the country’s electricity market.
The intervention follows reports that the EEDC curtailed power supply to Enugu State by as much as 50 per cent in protest against the state regulator’s recent order reducing Band A electricity rates to N160 per kilowatt-hour.
The directive, which the EERC insists is within its powers under the Electricity Act 2023, has drawn criticism from federal regulators and market operators who argue that uncoordinated tariff adjustments could undermine the operational and financial sustainability of the Nigerian Electricity Supply Industry.
Speaking during a stakeholders’ engagement in Abuja on Wednesday, NISO’s Managing Director/Chief Executive Officer, Abdu Mohammed, said the meeting was convened to safeguard the integrity of contracts and prevent disruptions at the interfaces between the Transmission Company of Nigeria and the 11 distribution companies.
The meeting, Mohammed added, was also aimed at ensuring the integrity of contracts and preventing disruptions to supply at the Transmission Company of Nigeria–DisCo interfaces.
He stressed that while the Electricity Act 2023 empowers state regulators like EERC to set tariffs within their jurisdictions, NISO’s statutory mandate under the Act, Market Rules, and Grid Code obliges it to maintain both the commercial balance and technical stability of the market.
According to him, any decision that materially affects market operations, settlement processes, or service level agreements must be addressed through dialogue to avoid undermining the financial sustainability of the industry.
He added that fair electricity pricing, sustainable business operations, and a stable market were interdependent goals that could only be achieved through transparency, coordination, and mutual respect among regulators, operators, and other stakeholders.
“We are meeting today in light of the recent Order issued by the Enugu State Electricity Regulatory Commission revising the electricity tariff within Enugu State.
“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.
“Notably, we have received communication from the Enugu Electricity Distribution Company indicating that, in reaction to the tariff adjustment, they initiated curtailment of power supply to Enugu State by up to 50 per cent.
“Such a measure, if implemented, could have serious operational implications, particularly at the TCN–DisCo interfaces where power transfer capacity Service Level Agreements are managed.
“It has also prompted necessary questions about how such decisions interact with the operations, dispatch, commercial arrangements, and financial equilibrium of the Nigerian Electricity Supply Industry as a whole.
Hence, this intervention meeting is to ensure that no action disrupts the Nigerian Electricity Market stability, the integrity of contracts, or operational obligations that guarantee reliable supply. “Let me be clear from the outset: NISO approaches this discussion with neutrality, respect, and an open mind. We are not here to question the authority of the Regulator or the Operators.
“We fully recognise the statutory powers of the Enugu State Electricity Regulatory Commission to regulate activities within its jurisdiction, and equally acknowledge the license and operational responsibilities of the Enugu Electricity Distribution Company in serving its customers.
“Our mandate obliges us to safeguard the integrity of the market settlement framework, ensure contractual obligations are respected, and maintain the delicate balance that allows every participant, from Generators to Distributors, from Regulators to Consumers, to operate in a financially sustainable and technically reliable environment.
“We believe that fair electricity prices, sustainable business operations, and a stable electricity market are not mutually exclusive goals; they are interdependent. Achieving all three requires dialogue, transparency, and coordination among all relevant institutions, Mohammed said.
The PUNCH reports that representatives of the Enugu State Electricity Regulatory Commission, the Enugu Electricity Distribution Company, the Nigerian Electricity Regulatory Commission, the Nigerian Bulk Electricity Trading Plc, the Federal Ministry of Power, and other key stakeholders were in attendance. The session later moved behind closed doors for deliberations between the parties.
https://punchng.com/niso-intervenes-in-enugu-tariff-dispute-warns-of-power-market-disruption
Leave a Comment