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NERC: States Cutting Power Tariffs Required to Fund Subsidy

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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.”

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Trump: I Am Not A Big Fan Of Pope Leo, He Is Weak On Crime

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US President Donald Trump says he is “not a big fan” of Pope Leo XIV, after the global leader of Catholics made a plea for peace amid the war in the Middle East.

 

The 70-year-old American pope publicly implored leaders on Saturday to end the violence, telling worshippers at St Peter’s Basilica: “Enough of the idolatry of self and money! Enough of the display of power! Enough of war!”

“I’m not a big fan of Pope Leo. He’s a very liberal person, and he’s a man that doesn’t believe in stopping crime,” Trump told reporters at Joint Base Andrews in Maryland.

He accused the pontiff of “toying with a country that wants a nuclear weapon.”

Trump later doubled down on his comments to reporters with a post on Truth Social, saying: “I don’t want a Pope who thinks it’s OK for Iran to have a Nuclear Weapon.”

“Pope Leo is WEAK on Crime, and terrible for Foreign Policy,” he said.

The president added that Leo had only been elected “because he was an American, and they thought that would be the best way to deal with President Donald J. Trump.”

“If I wasn’t in the White House, Leo wouldn’t be in the Vatican.”

Trump later posted an AI-generated image seemingly depicting himself as Jesus Christ.

In the image, the president appears dressed in red and white robes as he cures a man with his healing hand. The American flag is shown over his shoulder.

Trump and the White House have previously shared AI-generated images, including one that showed the president dressed as the pope.

On Friday, a Vatican official denied reports that a top Pentagon official gave the church’s envoy to the United States a “bitter lecture” over Pope Leo’s criticisms of the Trump administration.

The story in the Free Press — which the Pentagon had already dismissed as “distorted” — reported that Cardinal Christophe Pierre was summoned in January to the Pentagon, where he was given a dressing-down by US Under Secretary of Defense for Policy Elbridge Colby.

The military official reportedly told the cardinal that the United States “has the military power to do whatever it wants — and that the Church had better take its side.”

Vatican spokesman Matteo Bruni said in a statement “the account presented by certain media outlets regarding this meeting does not correspond to the truth in any way.”

While both parties insist the meeting was cordial, the Holy See and the White House have openly been at odds over the Trump administration’s hardline mass deportation campaign — which the pope called “inhuman” — and the use of military force in the Middle East and Venezuela.

When Trump made genocidal threats against Iran Tuesday — saying “A whole civilization will die tonight, never to be brought back again” — the pontiff slammed the “truly unacceptable” statement and urged parties to “come back to the table” for negotiations.

Earlier this month, Pope Leo hailed the news of a ceasefire between the United States and Iran as a “sign of real hope.”

But peace talks between the United States and Iran, held in the Pakistani capital Islamabad, ended abruptly and without a resolution on Saturday, with US Vice President JD Vance telling reporters after a marathon-session of talks that Washington has delivered its “final and best offer.”

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Guardiola Explains Reason Behind Man City’s Resurgence

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Pep Guardiola has explained the reason for Manchester City’s resurgence as they push for the Premier League title.

 

The win lifts City to 64 points from 31 games, cutting the deficit to leaders Arsenal—who have 70 points from 32 matches—to just six points, ramping up the title race in the closing stages of the campaign.

Asked why Manchester City have been in such fine form in the final stages of the season, Pep Guardiola joked: “The sun! If it had been shining in November, we’d have been league champions by January… No, I’m joking, of course. In Manchester, the sun doesn’t shine very often.”

Looking ahead to next Sunday’s 32nd-round clash with Arsenal in the Premier League, he added: “That game will feel like a final for both teams, but there is a tactical detail we need to review, so we may make some adjustments.

“Everyone is talking about the Arsenal game, but matches against Brentford, Bournemouth and the other sides are just as important. The season is still long.”

Guardiola added “We’re in better shape, and in training everyone knows exactly what they have to do. We’ve faced three strong opponents, three Champions League teams. We didn’t put in a complete performance for the full 90 minutes, but we were organised enough, didn’t concede many chances, and our attacking threat was always there.”

Pep Guardiola

He added:One of our secrets as a club and a system is that, after one success after another, we have remained humble and have always asked ourselves: what must we do to stay at the top? Winning once or twice is normal, but to remain at the top for nine years—with the exception of last season—reflects the strength of the entire system.”

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Artemis II Nears Pacific Splashdown Finale

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Their dramatic grand finale fast approaching, Artemis II’s astronauts aimed for a splashdown in the Pacific on Friday to close out humanity’s first voyage to the moon in more than half a century.

The tension in Mission Control mounted as the miles melted away between the four returning astronauts and Earth.

All eyes were on the capsule’s life-protecting heat shield that has to withstand thousands of degrees during reentry. On the only other test flight of the spacecraft — in 2022, with no one on board — the shield’s charred exterior came back looking as pockmarked as the moon.

Commander Reid Wiseman, pilot Victor Glover, Christina Koch, and Canada’s Jeremy Hansen were on track to hit the atmosphere traveling Mach 32 — or 32 times the speed of sound — a blistering blur not seen since NASA’s Apollo moonshots of the 1960s and 1970s.

This screen grab from NASA’s feed released on April 3, 2026, shows the four Artemis II crew members (L-R) Canadian Space Agency (CSA) astronaut Jeremy Hansen, Artemis II mission specialist, NASA astronauts Reid Wiseman, Artemis II commander, Christina Koch, Artemis II mission specialist and Victor Glover, Artemis II pilot as they head to orbit the Moon for the first time in more than half a century. Photo by HANDOUT / NASA TV / AFP

They didn’t plan on taking manual control except in an emergency. Their Orion capsule, dubbed Integrity, is completely self-flying.

Like so many others, lead flight director Jeff Radigan anticipated feeling some of that “irrational fear that is human nature,” especially during the six minutes of communication blackout preceding the opening of the parachutes. The recovery ship USS John P. Murtha awaited the crew’s arrival, along with a squadron of military planes and helicopters.

The last time NASA and the Defense Department teamed up for a lunar crew’s reentry was Apollo 17 in 1972. Artemis II was projected to come screaming back at 34,965 feet (10,657 meters) per second — or 23,840 mph (38,367 kph) — not a record but still mind-bogglingly fast before slowing to a 19 mph (30 kph) splashdown.

 

Artemis II’s record flyby and lunar views

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This handout picture provided by NASA shows Earth as seen through the Orion spacecraft’s window, photographed by NASA astronaut Reid Wiseman, commander of Artemis II, on April 2, 2026, after completing the translunar injection burn. (Photo by Reid Wiseman/NASA / NASA / AFP)

Launched from Florida on April 1, the astronauts racked up one win after another as they deftly navigated NASA’s long-awaited lunar comeback, the first major step in establishing a sustainable moon base.

Artemis II didn’t land on the moon or even orbit it. But it broke Apollo 13’s distance record, making Wiseman and his crew the farthest that humans have ever journeyed from Earth when they reached 252,756 miles (406,771 kilometers). Then, in the mission’s most heart-tugging scene, the teary astronauts asked permission to name a pair of craters after their moonship and Wiseman’s late wife, Carroll.

During the record-breaking flyby, they documented scenes of the lunar far side never seen before by the naked eye and savored a total solar eclipse courtesy of the cosmos thanks to their launch date. The eclipse, in particular, “just blew all of us away,” Glover said.

This handout picture by an Artemis II crew member provided by NASA shows Artemis II mission specialist Christina Koch looking back at earth through the window of the Orion spacecraft on April 2, 2026. (Photo by Handout / NASA / AFP)

Their sense of wonder and love awed everyone, as did their breathtaking pictures of the moon and Earth. The Artemis II crew channeled Apollo 8’s first lunar explorers with Earthset, showing our blue marble setting behind the gray moon. It was reminiscent of Apollo 8’s famous Earthrise shot from 1968.

“It just makes you want to continue to go back,” Radigan said on the eve of splashdown. “It’s the first of many trips, and we just need to continue on because there’s so much” more to learn about the moon.

Their moonshot drew global attention as well as star power, earning props from President Donald Trump; Canadian Prime Minister Mark Carney; Britain’s King Charles III; Ryan Gosling, star of the latest space flick “Project Hail Mary;” Scarlett Johansson of the Marvel Cinematic Universe; and even Captain Kirk himself, William Shatner of TV’s original “Star Trek.”

Artemis II was a test flight for future moon missions

A view through a window of the Orion spacecraft mockup on April 7, 2026 at Johnson Space Center in Houston, Texas.  (Photo by RONALDO SCHEMIDT / AFP)

 

Despite its rich scientific yield, the nearly 10-day flight was not without technical issues. Both the capsule’s drinking water and propellant systems were hit with valve problems. In perhaps the most high-profile predicament, toilet trouble prevented the crew from using it for No. 1 most of the trip, forcing them to resort to old-time bags and funnels.

The astronauts shrugged it all off.

“We can’t explore deeper unless we are doing a few things that are inconvenient,” Koch said, “unless we’re making a few sacrifices, unless we’re taking a few risks, and those things are all worth it.”

Added Hansen: “You do a lot of testing on the ground, but your final test is when you get this hardware to space, and it’s a doozy.”

A journalist looks at the Orion spacecraft mockup on April 7, 2026 at Johnson Space Center in Houston, Texas. Photo by RONALDO SCHEMIDT / AFP

 

Under the revamped Artemis program, next year’s Artemis III will see astronauts practice docking their capsule with a lunar lander or two in orbit around Earth. Artemis IV will attempt to land a crew of two near the moon’s south pole in 2028.

The Artemis II crew’s allegiance was to those next Artemis crews, Wiseman said.

“But we really hoped in our soul is that we could for just for a moment have the world pause and remember that this is a beautiful planet and a very special place in our universe, and we should all cherish what we have been gifted,” he said.

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