From Isaac Anumihe, Abuja and Jude Chinedu, Enugu
Following the recent downward review of electricity tariff by MainPower Electricity Distribution Limited (MEDL), the Enugu Electricity Distribution Company (EEDC) has drastically cut power supply to MEDL, throwing parts of Enugu State into darkness.
The crisis began after the Enugu Electricity Regulatory Commission (EERC) announced a reduction in electricity tariff for Band A customers, lowering the rate from N209.50 to N160.40 per kilowatt hour. The new tariff took effect on Friday, August 1.
However, the move has sparked a face-off between the Enugu Electricity Distribution Company (EEDC), the Nigerian Electricity Regulatory Commission (NERC), and the newly operational MainPower Electricity Distribution Limited (MEDL), with ripple effects felt across the state.
Since Thursday, July 31, consumers on Bands B to F have been without electricity, fueling speculation that the blackout was linked to the ongoing dispute.
In a statement released by its management, MEDL raised the alarm over the critical drop in electricity supply from EEDC, disclosing that the company now receives only about 50 per cent of its usual energy allocation, a situation that has severely impacted its ability to adequately serve its customers.
According to MEDL, the blackout was triggered by a dispute surrounding the new tariff regime. EEDC reportedly rejected the revised Band A tariff, which reduced the rate from N209.50/kWh to N160.40/kWh, claiming it would result in unsustainable losses, thereby hampering its ability to meet market obligations.
“The order reduced the tariff for Band A customers from N209.50/kWh to N160.40/kWh. Upon receipt of the tariff order, MEDL, by obligation, promptly updated EEDC (our energy supplier),” the statement read.
“After analysing the implications of the new tariff, EEDC concluded that implementing it would result in a monthly loss of over N1 billion, which makes it impossible for EEDC to meet her obligations to the market,” MEDL added.
The company further explained that the deteriorating electricity situation across Enugu over the past four days was directly linked to the steep drop in energy allocation from EEDC, its parent electricity supplier.
“This development is as a result of the recent issuance of a new tariff order to MainPower by the Enugu Electricity Regulatory Commission (EERC). The order reduced the tariff for Band A customers from N209.50/kWh to N160.40/kWh. Upon receipt of the tariff order, MEDL, by obligation, promptly updated EEDC (our energy supplier). After analysing the implications of the new tariff, EEDC concluded that implementing it would result in a monthly loss of over N1 billion, which makes it impossible for EEDC to meet her obligations to the market.
“Consequently, and to mitigate these losses, EEDC made the difficult decision to reduce the volume of energy supplied to MEDL. This has unfortunately resulted in MEDL receiving only about 50 percent of its usual energy allocation, significantly affecting our ability to serve some of our esteemed customers,” MEDL stated.
The company, while expressing deep regret over the situation, emphasized that it does not receive electricity directly from the national grid, but relies entirely on EEDC for its power needs.
“It is important to clarify that MEDL does not receive electricity directly from the national grid. Instead, we rely solely on EEDC, which holds the vesting contract agreement with the Nigerian Bulk Electricity Trading (NBET), the organisation responsible for electricity bulk trading,” it said.
The management also assured the public that it is working closely with key stakeholders at various levels of government to resolve the crisis and restore regular electricity supply.
“We deeply regret the inconvenience this situation has caused our valued customers. Please be assured that discussions are ongoing with key stakeholders at the state and federal levels (including EEDC, EERC, Nigerian Electricity Regulatory Commission (NERC), Nigeria Independent System Operator (NISO), and Nigerian Bulk Electricity Trading (NBET)) to quickly resolve this issue. We are hopeful that a resolution will be reached within the next 48 hours or soon thereafter,” the company said.
Acknowledging the delay in providing official communication to the public, MEDL attributed it to the limited notice with which it received the full details of the supply cut from EEDC.
“We also acknowledge that this communication is coming later than expected. The delay was due to the short notice with which we received the full details of the development.
“We appeal for your continued patience, calm, and understanding as we work diligently with the relevant authorities to restore normal service as soon as possible,” the company stated.
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