… issues licences to Mainpower, Fedikore
The issue of electricity generation, transmission and distribution has been a challenging in Nigeria for many decades. With the privatisation of the generating and distribution sections of the power sector many Nigerians had thought that problems of the sector would be over and that Nigerians would begin to enjoy relatively stable power supply. But that was not to be as the epileptic power supply continued with frequent collapse of the national grid.
Not long ago, with the passage of new power sector legislation, states were allowed not only to set up electricity generating plants, but also regulatory authorities to regulate power consumption, generation and distribution in the different states.
Taking advantage of the new leg- islation, Enugu State government, first sent a bill to the State House of Assembly for a law to establish the state regulatory authority. The bill was deliberated on and passed by the assembly. It was then later assented to on September 15, 2023, by Governor Peter Mbah, as the Enugu State Electricity Bill.
EERC
In a recent move that many have described as historic, the state government established the Enugu State Electricity Regulatory Commission (EERC).
The Commission officially began operations on October 22, 2024. EERC assumed full regulatory oversight of the Enugu State electricity market following the lapsing of the transition period for the transfer of regulatory oversight from the Nigeria Electricity Regulatory Commission (NERC) to the state agency.
This development, which makes Enugu the first state to commence the development of a sub-national electricity market, both in Nigeria and Africa, also saw EERC issued licensees to Mainpower Electricity Distribution Limited, an EEDC subsidiary set up to take over electricity operations of EEDC in Enugu State, and Fedikore Limited, which is the first Independent Power Project (IPP), in the state, with the mandate to build a power plant, with a nameplate capacity of 10MW.
This followed the enactment of the Enugu State Electricity Law, 2023, and the setting up of the EERC, which saw Enugu State emerge in April 2024 as the first state to be handed the regulatory power over its electricity market by NERC, but with a six-month transition period, which elapsed recently.
New era in power sector
Following this development, the state is now fully and effectively empowered to exercise the constitutional right to develop its electricity sector across the value chain of generation, transmission, distribution, or retailing services, including Mini-Grid and Off-Grid electrification solutions.
During the handover ceremony, the Chairman of EERC, Chijioke Okonkwo, described the event as significant, “as it marks the beginning of the development of sub-national electricity markets not only in Great expectations as EERC assumes full regulation of Enugu electricity market Nigeria, or West Africa, but across the African continent.
“Today completes the six months transition for the transfer of regulatory authority from the national regulator, NERC, to the EERC, as stipulated in Section 230 of the Electricity Act 2023, and the consequential Order of NERC dated 22nd April 2024. “Today, we now take on the monumental responsibility of regulating and guiding the electricity sector in Enugu State.
This assumption of regulatory oversight is not just about the transfer of authority, but represents a shared vision for a more efficient, responsive, and innovative electricity market. “NERC has laid a strong foundation, and we are confident that EERC will build on that legacy to bring about positive changes for the people of Enugu State and beyond, in line with Enugu’s realities.
“Our mission is clear: to ensure that Enugu has access to reliable, cost effective, and sustainable electricity while promoting fairness and innovation in the sector. He further noted, “We are here to enhance the quality of life for all residents, businesses, and stakeholders by creating an efficient regulatory environment that fosters growth and transparency.”
The Chairman commended Mbah’s administration for it zero political interference in the affairs of the Commission. This is as he disclosed, “I must say that we have enjoyed a tremendous level of independence from the state government activities and our own role.
We have been established and supported to take off. However, we have also been given the authority and independence to develop the regulations and policies that we have put in place, not minding how they impact on the state government.”
Speaking, a board member of Mainpower Electricity Distribution Limited, Kester Enwereonu assured the people of the state of a better electricity experience in all ramifications. “We are not just identifying with EERC as the pacesetter, Mainpower will also want to be the pacesetter.
We are assuring you that in the coming weeks, months, and years, and with the regulatory structure that is now tailored to the needs and purposes of the state, we are going to have an improved service to the people of Enugu State,” he said. On his part, the Founder and MD/ CEO of Fedikore Limited, Dr Chukwueloka Umeh described, “what is happening in Enugu as revolutionary, expressing Fedikore’s joy to partner with EERC.
“The EERC has done a fantastic job in starting this revolution that is about to happen and we are pleased to be a part of it. Fedikore set up last year as the first IPP in Enugu State. We built 4mw plant at 9th Mile to supply power to the Enugu State Water Corporation here in Enugu.
“So, we are very committed to working with the state, especially given the leadership provided by both the government and the EERC so far. We believe that with the support of EERC, the state and with the partnership with Mainpower, we can do amazing things here to start the industrial revolution that we are talking about for many years. It is possible.”
In another event, the Managing Director of Mainpower Electricity Distribution Limited (MEDL), Dr Ernest Mupwaya stated that the company will begin comprehensive metering of all customers to eliminate estimated billing in Enugu State. Mupwaya made this known during a stakeholders’ meeting held at Oakland Hotels, Enugu shortly after the takeover.
The meeting was to outline the company’s vision for reliable power supply and customer-centric services. The Managing Director intro- duced MainPower’s strategic initia- tives aimed at transforming electricity distribution and enhancing customer service in Enugu State.
He disclosed that MainPower would commence metering in the shortest possible time with free instal- lations prioritized in high-loss areas, aiming to cover all customers by 2027. According to him, accurate and transparent billing would allow customers to pay only for what they consume, pointing out that it would promote fairness and encourage energy conservation.
“A critical component of MainPower’s service improvement plan is the rollout of a comprehensive metering programme to eliminate estimated billing,” Mupwaya stated.
He also noted that MainPower aims to meter all customers by 2027, with free installations prioritised in high-loss areas between 2024 and 2027. According to him, “This initiative is expected to foster greater customer trust while improving MainPower’s revenue assurance.
“MainPower, a newly formed subsidiary of the Enugu Electricity Distribution Company (EEDC), has been established to address the specific power needs of Enugu residents, ensuring reliable, transparent, and efficient energy services.
“The company’s creation aligns with Nigeria’s recent regulatory reforms focused on creating a customercentered power distribution system that supports innovation and customer engagement to drive improvements in reliability and service.” Further, Mupwaya outlined MainPower’s objectives, emphasising the company’s commitment to achieving 24/7 electricity supply across Enugu State over the next three years.
“This ambitious goal will be reached through a phased approach, beginning with urban and commercial hubs and expanding to all residential customers. Supporting this vision requires substantial infrastructure upgrades and partnerships with independent power producers (IPPs) to secure the necessary additional power sources,’’ he said.
Adding, ‘‘MainPower’s mission aligns with broader regulatory reforms aimed at sustainable and efficient power distribution. “MainPower is also forging partnerships with private investors to expedite meter installations and enhance its distribution network.
These collaborations will bring additional resources, expertise, and advanced technology, enabling MainPower to make faster and more cost-effective improvements. “With increased investment in metering and infrastructure, MainPower aims to build a more resilient and reliable distribution network capable of handling the rising demand for electricity across Enugu,” he added.
Appeal for support
Also speaking, Engr. Chinedum Ukabara, a Commissioner in the Enugu Electricity Regulatory Commission (EERC) affirmed the EERC’s commitment to fair and transparent regulation to attract investment into the state’s power sector.
He urged customers to support these improvements by ‘staying up-todate’ with bill payments, as customer cooperation is essential to sustaining the benefits of the reforms.”
Residents and business owners in Enugu are full of expectations that the promises of the various companies and new regulatory authority would materialise and not become a promissory note.
There is no doubt that power supply to Enugu, the coal city state has greatly improved, but a good number of electricity consumers are still burdened by estimated billing due to scarcity of prepaid meters. Electricity consumers in the state therefore look forward for a time prepaid meters will not only be available everywhere but also free as promised
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