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
Transfer: Real Madrid , Cucurella Reach Verbal Agreement
Chelsea reliable defender, Marc Cucurella may join Spanish giant, Real Madrid before the end of the current transfer window.if information from transfer journalist, Fabrizio Romano are anything to go by.
Romano In a latest transfer update, said Real Madrid has reached verbal agreement to sign Marc Cucurella from Chelsea.
“Verbal agreement in place between all parties, player too — he’s the left back wanted by Mourinho” the update read.
International News
Ancelotti: Pressure Affected Brazil Against Morocco
Carlo Ancelotti felt Brazil were “anxious” in their World Cup opener against Morocco, as he suggested the pressure got to his players.
Brazil were largely underwhelming at New York New Jersey Stadium, as they opened their Group C campaign with a 1-1 draw.
World Cup 2022 semi-finalists Morocco made a fine start, which was capped off when Ismael Saibari charged through in the 21st minute and lofted a cute finish over Alisson.
With the unfit Neymar watching on from the bench, Vinicius Junior slammed home a brilliant equaliser 11 minutes later, but Brazil could not find a way through Morocco’s defence for a second time.
In fact, Brazil relied on a sharp double save from Alisson late on to preserve a point, and Ancelotti knows there is plenty of scope for improvement.
“I think it was a tough match, especially in the first half,” Ancelotti said, as reported by ESPN
“Maybe the team was a bit anxious, and the nerves were all over the place. The second half was better, but it was still tough, and I’m sure we’ll get better.
“I think that’s something we’ll have to look into.
“There’s a lot of pressure, so it’s natural. Little by little, we’ll improve in that sense.”
Brazil are, at least, unbeaten in their opening match in the last 21 World Cups dating back to 1938 (W17 D4).
It is the longest such streak in the history of the World Cup, more than twice as long as any other (Germany, Netherlands – nine straight).
“We have to reassess what we did,” Ancelotti added.
“In the first half, we were very unbalanced. We did a bit better in the second half. The result isn’t bad. You don’t win the World Cup in your first match.
“I’m not disappointed, but I’m not satisfied, either. We need to work, but that’s normal. Morocco played well. They’re a solid team, very well organised. It was a difficult game.
“For many different reasons, a debut in the World Cup might not end up as expected. The goal is to qualify, move on to the next round and improve over time.”
With uncertainty over how much Neymar will be able to contribute at this tournament, Brazil need Vinicius to step up, and the Real Madrid forward demonstrated his quality with a wonderful run and finish to restore parity.
It marked Vinicius’ 10th goal for Brazil, with three of those coming on American soil.
“We started on a really bad note,” Vinicius said. “For certain, we got to hold on to the ball. We have to move better.”
International News
Revealed: Why Yamal Lost Spain’s No.10 Shirt To Olmo At The Mundia
According to The Athletic, Yamal will not wear the No. 10 jersey for Spain; it will belong to teammate Olmo.
Pelé, Diego Maradona, Zinedine Zidane, Messi, and Roberto Baggio have all delivered superstar-level performances at the FIFA World Cup.
What do they have in common? They all wore the No. 10 jersey at the time.
Historically, this number typically belongs to the most creative player on the team, usually an attacking midfielder, and sometimes even a forward. It is also part of a player’s personal brand, an honor reserved for a special type of player.
Spain is one of the favorites to win this summer’s North American tournament, and there is no bigger name in the squad than Yamal. But he will not wear the No. 10 for Spain; instead, he will wear No. 19, the same number he wore in the summer of 2024 when he helped Spain win the European Championship in Germany.
So, why can’t the 18-year-old, who wears this legendary number at Barcelona—a number most easily associated with the club’s all-time leading goal scorer and appearance record holder Messi—enjoy the same treatment with the Spanish national team?
Spain’s No. 10 this summer will be Olmo, who is also one of Yamal’s teammates at Barcelona.
Olmo wears No. 20 at Barcelona, but for the national team, a simple factor puts him ahead of the young player when deciding numbers: seniority.
Spain’s system for assigning squad numbers dictates that the player with the most national team appearances gets priority in choosing from available numbers.
Yamal has made 25 appearances for the national team since his debut in 2023; Olmo has 50 national team appearances and was already wearing the No. 10 before Yamal joined the Spanish squad.
Yamal has proven capable of handling the challenge of wearing the No. 10 at Barcelona. When Messi left the club in a painful manner in the summer of 2021, it left Barcelona with several issues to resolve, one of which was who would inherit the No. 10 and bear the pressure of the legacy left by the Argentinian.
Ansu Fati, one of the brightest talents to emerge from Barcelona’s La Masia academy in recent years, did not succeed. After Messi’s departure, he inherited the No. 10 but suffered multiple injuries and could not meet expectations.
Barcelona sources believe that giving the number to Fati was a mistake because it placed too much pressure on the young player. Like all quoted sources in this article, they requested anonymity to protect their relationships.
But Yamal’s situation is different. He took over Fati’s No. 10 last summer and hasn’t looked back since. Last season, he achieved his career-best statistics, scoring 24 goals and providing 17 assists in 45 games.
Not wearing the Spanish No. 10 has also not affected Yamal’s progress with the national team.
This is not seen as a problem, but rather as part of the young player’s development. Everyone in the Spanish squad understands the rules, and sources close to Yamal and the team insist that Yamal holds no resentment towards Olmo.
It can also be argued that, besides international recognition, there are commercial factors for jersey numbers that should not be overlooked. Giving Yamal the No. 10 would certainly boost sales of the Spanish team’s jerseys and bring a more significant commercial impact from the star player.
However, respect among teammates, especially for more senior players, is a key tenet for Spain’s coach Luis de la Fuente and the foundation of the culture he is building for this Spanish team.
No individual is important enough to be above this team spirit, not even Yamal. The young player is considered the most important attacking player for Spain and is highly respected in the locker room, but breaking the seniority policy to take a teammate’s number is simply not allowed in this team.
Gavi should also be mentioned. The 21-year-old player has primarily played as a central midfielder for Barcelona this season, even playing as a defensive midfielder, but he will wear No. 9 for Spain, a number more commonly associated with central forwards.
There’s a story behind this too. When Gavi made his Spain debut in 2021, No. 9 was the last available number when he chose.
That year, he made his debut in the Nations League semi-final win against Italy, with an impressive performance, and Gavi has stuck with that number ever since. Whenever the national team’s No. 9 is available, he always chooses it.
Spain’s starting forward Oyarzabal actually began his career as a winger, but he has always chosen No. 21 and decided to keep this number throughout his national team career.
Another forward included in Luis de la Fuente’s FIFA World Cup squad, Celta player Borja Iglesias, has 8 national team appearances, fewer than Gavi’s 30, so he cannot get the No. 9.
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