By ABAH ADAH, Abuja
Nigerian Independent System Operator ,NISO, Wednesday waded into the brewing dispute between the Enugu State Electricity Regulatory Commission ,EERC, and the Enugu Electricity Distribution Company ,EEDC, over the recent downward review of electricity tariffs in the state.
The intervention came after EEDC reportedly curtailed power supply to Enugu State by up to 50% in reaction to the state regulator’s order adjusting tariffs.
Recalls that the Enugu tariff cut, which slashed Band A rates to N160/kWh, drew backlash from federal regulators and other stakeholders who argued that such decisions, in the absence of coordination, threaten the sustainability of the national electricity supply industry ,NESI.
This development, NISO said, could have far-reaching operational and financial consequences for the Nigerian Electricity Supply Industry ,NESI.
Speaking at a stakeholders’ engagement in Abuja, the Managing Director/CEO of NISO, Engr. Abdu Mohammed, explained that the meeting was convened to safeguard the stability of the national electricity market.
The meeting, Mohammed added, was also aimed at ensuring the integrity of contracts and preventing disruptions to supply at the Transmission Company of Nigeria ,TCN–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%.
“Such a measure, if implemented, could have serious operational implications, particularly at the TCN–DisCo interfaces where power transfer capacity Service Level Agreements ,SLA, 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
