International News
NERC: States Cutting Power Tariffs Required to Fund Subsidy
The Nigerian Electricity Regulatory Commission (NERC) has stated that state governments lack jurisdiction over the national grid and power stations established under federal laws or operating with licenses issued by the commission.
The commission stated this in its reaction to the controversies generated by the Enugu Electricity Regulatory Commission’s decision to slash the Band A tariff.
In a notice on Thursday, the national power regulator advised state governments to reflect the wholesale costs in tariffs or be ready to pay subsidies for any tariff shortfall.
The commission acknowledged that states that have assumed full regulatory oversight over their intrastate markets are now authorized to create and regulate transactions in their state electricity markets, saying this extends to the development of tariff methodologies that shall apply to end-use customers in their respective states.
This came as the power distribution and generation companies warned that states’ absolute power to determine tariffs begins when they start generating and transmitting electricity.
The NERC, in its notice on Thursday, cautioned, “As states do not have jurisdiction over the national grid and over electric power stations established under federal laws/operating under licences issued by the commission; they must holistically incorporate the wholesale costs of grid supply to their states without any qualification or deviation in their design of tariffs for end-use customers in order not to distort the dynamics of the market or be prepared to make a policy intervention by way a subsidy for any deviation in the tariff structure that distorts the wholesale generation, transmission and legacy financing costs in the Nigeria Electricity Supply Industry.”
NERC said no institution would take decisions that expose the national grid and wholesale electricity market to a financial crisis in contravention of express powers granted to them by the constitution.
“The commission’s attention has been drawn to the increasing stakeholders’ concerns on the Tariff Order (Order No. EERC/2025/003) issued by the Enugu State Electricity Regulatory Commission, to its Licensee Mainpower Electricity Distribution Limited that relies exclusively on electricity supply (generation and transmission) from the national grid.
“NESI stakeholders have expressed concern about the consequences of the reduction of tariffs for Band A customers in MEDL’s network area to N160.4 per kWh and the freezing of tariffs of customers in the other bands on the wholesale generation and transmission costs, along with the financing costs for legacy obligations in NESI. It is pertinent to state that the N160.4 per kWh was arrived at largely by reducing the current average Generation Tariff of N112.60 per kWh to NGN45.75, with an assumption of a subsidy component, a difference of N66.85 per kWh.
“Section 34(1) of the EA places a statutory obligation on the commission to create, promote and preserve efficient electricity industry and market structures, and ensure the optimal utilisation of resources for the provision of electricity and we are also aware that EERC as a sub-national electricity regulator also has a similar statutory obligation in their enabling law; and neither NERC nor EERC as responsible regulatory institutions would take decisions that expose the national grid and wholesale electricity market to a financial crisis in contravention of express powers granted to them by the constitution,” the Federal Government agency said.
It informed all stakeholders that the commission is currently engaging EERC on their tariff order as it relates to any perceived area of misinterpretation/misunderstanding on wholesale generation and transmission costs on their import of power from the national grid and grants further assurances of its unwavering statutory commitment that the electricity market will be made whole in terms of cost recovery in compliance with the laws of the Federal Republic of Nigeria.
Meanwhile, the Association of Nigerian Electricity Distributors and the Association of Power Generation Companies said the Enugu Electricity Distribution Company and other states contemplating tariff reductions should wait till they start generating and transmitting their electricity before slashing tariffs.
The Chief Executive Officer of ANED, Sunday Oduntan, told Band A customers in Enugu State not to rejoice yet, saying there can’t be a 20-hour power supply at N160 per kilowatt-hour.
On Sunday, the Enugu Electricity Regulatory Commission announced the reduction of the Band A electricity tariff from N209/kWh to N160/kWh, asking MainPower Electricity Distribution Company to implement this from August 1.
The decision has since sparked crises as generation and distribution companies accused the EERC of attempts to create more financial burden in the power sector, saying no state should impose more subsidy obligations on the Federal Government that is still owing N5.2tn of unpaid shortfalls.
While the ERRC said it did its calculations well before dropping the tariff to N160/kWh, Oduntan warned that no state has the power to determine the cost of electricity at the moment, stressing that the states can only align with the tariff order of the Nigerian Electricity Regulatory Commission, except if the value chain totally belongs to them.
Earlier in a statement, Oduntan raised the alarm over growing consumer resistance to electricity bill payments following the tariff cut by the Enugu State Electricity Regulatory Commission, warning that the move threatens to destabilise the country’s fragile power sector.
He disclosed that since EERC announced a reduction in Band A tariffs, customers in other states have begun to demand similar cuts, with some outrightly refusing to pay their electricity bills.
The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, also shared the same sentiment. According to her, states cannot unilaterally fix tariffs because they do not produce electricity.
“The fact speaks for itself. The fact that EERC still regulates a product it does not produce at the state level, but from the wholesale market, they cannot unilaterally regulate that price,” she said.
Ogaji added that the EERC made reference to NERC’s tariff regulations, which assume a subsidy that she deemed imaginary because there is no written policy from the Federal Government stating that there is a subsidy, nor is there a financing plan to backstop the ever-growing and accumulating debts, which have impaired GenCos’ books.
“Their claim based on an imaginary subsidy is baseless. You can’t build something on nothing. Tariff documents are not child’s play. They form the fulcrum for many decisions, including business decisions, potential investors, and so on.
“This regulatory rascality will not be sustainable for decentralisation. Do you even have a justification for claiming a subsidy? Let’s assume there is one in a federal market, you have applied to be independent of? Can you eat your cake and still have it? How do you even claim this subsidy as a state? Unfortunately, we lack leadership in this sector,” she said.
Meanwhile, the EERC clarified that its recent tariff cut did not tamper with the prevailing cost of power generation in the country in any way. The commission maintained that, based on MainPower’s costs, there was no justification to keep the price of electricity for Band A at N209/kWh in the state.
In a statement by EERC’s Commissioner for Electricity Market Operations, Reuben Okoye, the agency maintained that although it inherited the current tariff regime, “the commission is focused on developing a sub-national electricity market that is transparent, accountable, reliable and sustainable and therefore will review utility costs of service to achieve its mandate to the people of Enugu.”
International News
W/Cup: Germany Recalls Retired Goalie @ 40
Manuel Neuer has been called up to Germany’s World Cup squad – two years after his international retirement.
The 40-year-old was named as part of Julian Nagelsmann’s 26-man squad for the tournament this summer, having not featured for his country since Euro 2024.
Among the list include Premier League players Malick Thiaw and Nick Woltemade – both of Newcastle – Arsenal striker Kai Havertz, Liverpool midfielder Florian Wirtz and Brighton’s Pascal Gross.
Injured duo Serge Gnabry and Anton Stach and forwards Karim Adeyemi, Kevin Schade and Niclas Fullkrug are among those to miss out.
Germany’s World Cup squad in full
Goalkeepers: Oliver Baumann (Hoffenheim), Manuel Neuer (Bayern Munich), Alexander Nubel (Stuttgart)
Defenders: Waldemar Anton (Borussia Dortmund), Nathaniel Brown (Eintracht Frankfurt), David Raum (RB Leipzig), Antonio Rudiger (Real Madrid), Nico Schlotterbeck (Borussia Dortmund), Jonathan Tah (Bayern Munich), Malick Thiaw (Newcastle)
Midfielders: Pascal Gross (Brighton), Joshua Kimmich (Bayern Munich), Felix Nmecha (Borussia Dortmund), Aleksandar Pavlovic (Bayern Munich), Angelo Stiller (Stuttgart), Leon Goretzka (Bayern Munich), Florian Wirtz (Liverpool), Jamie Leweling (Stuttgart)
Forwards: Maximilian Beier (Borussia Dortmund), Kai Havertz (Arsenal), Lennart Karl (Bayern Munich), Jamal Musiala (Bayern Munich), Leroy Sane (Galatasaray), Deniz Undav (Stuttgart), Nick Woltemade (Newcastle)
International News
Mikel Obi Claims Credit For Alonso’s Chelsea Appointment
Former Chelsea midfielder John Obi Mikel has opened up on the club’s decision to appoint Xabi Alonso as their new manager.
The Blues confirmed the Spaniard as their next head coach following the conclusion of the 2025-26 season, with Alonso set to take charge ahead of the upcoming campaign.
Mikel had previously been vocal about Chelsea’s managerial philosophy, urging the club’s ownership to move away from short-term head coaches and interim appointments and instead bring in a proper manager with full control over the squad
Speaking on his most recent podcast, Mikel said:
“I am glad the owners listened to me, and listened to the fans.
“Forget about coaches, what we have always had are managers, and what we need is a manager who decides on the players he wants out and the players who can stay.
“We need a strong personality, and that is what we have got now in Alonso.
“That title has been changed from coach to manager, but I hope it’s not just words and he is actually allowed to manage the squad. But I am very happy with the appointment.”
Chelsea are still in the hunt for Europa League football, and a win over Sunderland on the final day of the Premier League season would go a long way in determining whether Alonso inherits a European stage to build on next season.
International News
Enzo Maresca Gets 3Yr Deal To Replace Pep At Man City
Enzo Maresca is believed to have signed a three-year deal to replace outgoing Man City manager Pep Guardiola, after it was revealed that the legendary head coach will be leaving the Etihad at the end of the season.
Speculation around Guardiola’s departure date has been rife as the season draws to a close, despite the Catalan having one year left on his contract.
According to report, Man City’s sponsors were among those to have been told that Guardiola will be calling time on a remarkable trophy-ladened spell on Sunday.
The report also shared that Maresca, Guardiola’s former assistant, was a front-runner for the vacant spot at the dugout, with Fabrizio Romano confirming on Tuesday morning that the ex-Chelsea manager will be taking over.
The Italian head coach has been out of work since his mutual departure from Stamford Bridge under strained circumstances on January 1.
But even before his acrimonious mid-season exit, Maresca has been viewed as a long-term successor to Guardiola following their stint working together at Man City.
The 46-year-old served as Guardiola’s assistant between 2022 and 2023 after previously coaching Man City’s youth sides, before departing to earn Championship promotion with Leicester.
Maresca then went on to win the Uefa Conference League and the Club World Cup with Chelsea during his 18-month spell in west London.
Guardiola is set to celebrate his time in English football with an open-top bus parade in Manchester after winning the Carabao Cup and FA Cup this season, but until Monday night, the manager had been notably vague over his future plans.
But before news broke of his shock exit, Guardiola had been keen to tamp down any suggestions that he would be commemorated with any fanfare.
‘The club don’t have to do anything, honestly,’ Guardiola, who has yet to officially confirm his departure, said. ‘The important thing in our lives is that when you look back, you can look with a big smile and say “that was good”.
‘Bernardo (Silva) and John (Stones) can feel that. We spoke about it over the last few days. When you’re old, a grandfather, you can look at the memories. That is the most important thing in life.’
Tired of addressing his contractual situation, Guardiola added with a dose of sarcasm: ‘Whatever happens at the end of the season – and when I extend my contract for three more years – I can look back and say, “how nice has that been?”
‘That is the most important thing by far. Most of the people who lived this time here together can feel it.’
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