NISO Steps In Over Enugu Tariff Dispute, Warns of Electricity Market Disruption
By Kalu blessing
The Nigerian Independent System Operator (NISO) has intervened in the escalating dispute between the Enugu State Electricity Regulatory Commission (EERC) and the Enugu Electricity Distribution Company (EEDC) over a recent tariff cut, cautioning that the row could destabilise Nigeria’s electricity market. The intervention follows reports that EEDC reduced power supply to Enugu State by as much as 50 per cent in protest against the state regulator’s decision to lower Band A electricity rates to ₦160 per kilowatt-hour.
The EERC maintains that its directive is lawful under the Electricity Act 2023, but federal regulators and market operators have warned that uncoordinated tariff adjustments risk undermining the operational and financial stability of the Nigerian Electricity Supply Industry (NESI). Speaking at a stakeholders’ engagement in Abuja on Wednesday, NISO’s Managing Director and Chief Executive Officer, Abdu Mohammed, said the meeting was convened to preserve the integrity of contracts and prevent supply disruptions at the Transmission Company of Nigeria (TCN)–DisCo interfaces. He stressed that while the Electricity Act empowers state regulators to set tariffs within their jurisdictions, NISO’s statutory mandate under the Act, Market Rules, and Grid Code requires it to protect both the commercial balance and technical stability of the market.
Mohammed warned that decisions materially affecting market operations, settlement processes, or service-level agreements must be addressed through dialogue to safeguard the industry’s financial sustainability. “We are meeting today in light of the recent Order issued by the Enugu State Electricity Regulatory Commission revising the electricity tariff within Enugu State.
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Notably, we have received communication from the Enugu Electricity Distribution Company indicating that, in reaction to the tariff adjustment, they initiated curtailment of power supply to Enugu State by up to 50 per cent. Such a measure could have serious operational implications, particularly at the TCN–DisCo interfaces where power transfer capacity Service Level Agreements are managed,” he said. AHe emphasised that NISO’s role was neutral, recognising both EERC’s authority and EEDC’s operational responsibilities, while ensuring the market’s settlement framework and contractual obligations remain intact.
“Fair electricity prices, sustainable business operations, and a stable electricity market are not mutually exclusive; they are interdependent. Achieving all three requires dialogue, transparency, and coordination among all relevant institutions,” Mohammed added. Representatives of the EERC, EEDC, Nigerian Electricity Regulatory Commission, Nigerian Bulk Electricity Trading Plc, Federal Ministry of Power, and other stakeholders attended the meeting, which later continued behind closed doors for further deliberations.
