Connect with us

International News

NERC: States Cutting Power Tariffs Required to Fund Subsidy

Published

on

Spread the love

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

Nottingham Forest Sacks 5th Manager In 10 Months, To Wrap Up Oliver Glasner’s Deal

Published

on

Spread the love

 

Oliver Glasner is in advanced talks to replace Vitor Pereira as Nottingham Forest head coach, a move which would see the Austrian become the club’s fifth manager in less than a year.

 

Pereira announced his departure from the club in a statement on Wednesday, saying that it came as a “complete surprise to me and without any warning”.

Glasner is a free agent after leaving Crystal Palace — where he won the FA Cup in 2024-25 and then the Community Shield and Conference League the following campaign — and is set to stay in the Premier League.

The 51-year-old confirmed in January that he would leave Palace at the end of the season after two years in charge.

On Thursday, Forest confirmed Pereira’s coaching staff Filipe Almeida, Luis Miguel, Bruno Moura, Marco Knoop and Pedro Lopes had all left the club alongside the head coach.

Pereira, 57, was appointed Forest head coach in February on an 18-month contract which runs until 2027.

The Athletic reported in May Forest had been planning to show their faith in Pereira by handing the head coach a new long-term contract, but those talks were subsequently put on hold.

“Today marks the end of my journey as head coach of Nottingham Forest,” he said in his statement.

“I want to say a sincere thank you to everyone connected with this incredible football club. Although this decision came as a complete surprise to me and without any warning, I fully respect the club’s right to make the decisions it believes are best for its future.

“Naturally, I am disappointed and saddened. I truly believed in what we were building together, and I leave with a sense of pride in everything we achieved over the past months.

“Together, we enjoyed a memorable end to the season. We secured the club’s Premier League status, reached the semi-finals of the Europa League, and created moments that will stay with me forever. Most importantly, I saw a group of players grow in confidence, belief and togetherness.

“I leave Nottingham Forest with no bitterness or resentment—only respect, gratitude and wonderful memories. Football is full of unexpected moments, and while this chapter has ended sooner than I expected, I will always look back on my time here with pride and affection.”

The Portuguese succeeded Sean Dyche and was Forest’s fourth permanent boss of the season following the departures of Nuno Espirito Santo and Ange Postecoglou.

Nuno had led Forest to Europa League qualification the previous season but he departed in September, less than three months after signing a new deal. Postecoglou was appointed his replacement but was dismissed just 39 days later. Dyche took charge of the team in October before his dismissal in February.

Forest were three points above the relegation zone when Pereira was appointed and he subsequently steered his side to Premier League safety with two games of the campaign remaining.

His appointment marked his second managerial spell in the Premier League after guiding Wolverhampton Wanderers to safety during the 2024-25 campaign.

Continue Reading

International News

Ronaldo Dismisses Sister’s Retirement Claim

Published

on

Spread the love

 

Cristiano Ronaldo has publicly countered suggestions from his sister, Katia Aveiro, that he intends to retire from international football following the World Cup.

 

The Portuguese legend recently led his team to the round of 16 following a 2-1 victory over Croatia.

Ronaldo continued to be a pivotal player for his country, having scored the equalising goal from the penalty spot after going one goal down in the second half.

Following his goal, he became the oldest player to score in the knockout stage of the FIFA World Cup.

Reports from Portuguese media had quoted Aveiro stating that the current tournament would be Ronaldo’s final appearance for the national team.

Before the recent match against Croatia, Aveiro was quoted as saying, “From the information I have, from a reliable source, I believe that this is the last dance, so let’s enjoy it. I strongly believe this is the farewell.”

However, the football icon has made it clear that his focus remains solely on the present, not on his future.

“My future isn’t important right now,” Ronaldo stated. “I’ll have time; after winning or losing, I’ll talk to my family and then make the best decision.”

The legendary forward, who recently secured a trophy in Saudi Arabia, holds the record for both appearances and goals for his national team, with 146 goals in 232 caps.

Continue Reading

International News

Match-Fixing: UEFA Slams Club With Europa League Ban

Published

on

Spread the love

 

The UEFA Appeals Body has announced that Czech club Karvina is banned from participating in next season’s Europa League. UEFA made the decision based on competition regulations, ruling that Karvina “directly or indirectly participated in activities aimed at manipulating or influencing the results of domestic matches,” as stated in the official resolution.

 

As a result of this decision, Karvina’s spot as domestic cup winner will be taken by Viktoria Plzeň, with Viktoria Plzeň’s second qualifying round spot going to Hradec Králové. Jablonec will fill the vacant Conference League spot originally held by Hradec Králové.

In the Europa League, Hradec Králové will face Tromsø. In the Conference League, Jablonec will face Varaždin.

Viktoria Plzeň will learn their opponent in the Europa League playoff draw on Monday, August 3.

Continue Reading

Trending

Copyright © 2026 TheColumn NG