Nigeria’s power generation companies, GenCos have kicked against the proposed cut of Band A electricity tariffs, by the Enugu Electricity Regulatory Commission, EERC.
The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, said this this Monday, lamenting that the tariff revision sets a precedent for all other states and fails to reflect the true cost of electricity generation.
He warned that the decision relies on questionable subsidy assumptions and poses serious risks to the country’s fragile power sector.
Recall that EERC had announced on Sunday that it had reduced the Band A tariff in the state from N209/kWh to N160/kWh, effective August 1, 2025, insisting that the tariff must reflect the power generation subsidy by the Federal Government for the benefit of electricity consumers.
However, Ogaji says there is no government policy on subsidies but instead debt accumulation, lamenting that the Enugu state government is placing more burden on the GenCos, who bear the brunt of unpaid subsidies.
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