ORDER ON THE REVIEW OF THE COMMISSION’S DIRECTIVE TO MAINPOWER ELECTRICITY DISTR...

ENUGU STATE ELECTRICITY REGULATORY COMMISSION ORDER NO. EERC/2026/002 ORDER ON THE REVIEW OF THE COMMISSION’S DIRECTIVE TO MAINPOWER ELECTRICITY DISTRIBUTION LIMITED ON THE DOWNGRADE OF FEEDERS FOR FAILURE TO MEET SERVICE OBLIGATIONS UNDER THE SERVICE BASED TARIFF FRAMEWORK AND OTHER MATTERS RELATING THERETO WHEREAS: (1) By its letter dated 8th May 2026 the Enugu State Electricity Regulatory Commission (the Commission) issued a Directive to MainPower Electricity Distribution Limited (MainPower) to downgrade 60 feeders in its distribution network to their appropriate service levels due to MainPower’s failure to meet the service level obligations of the said 60 feeders under the Service Based Tariff (SBT) framework (2) MainPower failed or refused to comply with the Commission’s Directive, and in its communications to the Commission, raised issues which were tantamount to a challenge of the Commission’s regulatory powers over its operations in Enugu State notwithstanding its status as a licensee of the Commission (3) The Commission subsequently issued a notice dated 29th May 2026 directing MainPower to show cause why the Commission should not commence enforcement action for its failure to comply with the Commission’s lawful regulatory Directive to downgrade the said feeders (4) Even after issuance of the notice, MainPower still failed or refused to comply with the Commission’s Directive to downgrade the feeders in question (5) Between the months of June and July 2026, several important stakeholders facilitated dialogue between the Commission, MainPower and its holding company, Enugu Electricity Distribution Plc (EEDC), including the Bureau of Public Enterprises (BPE) and the Secretary to Enugu State Government. (6) Some of the meetings were attended by critical stakeholder groups in Enugu State including representatives of industrial, residential and commercial customers, as well as ministries, departments and agencies (MDA) of the State government. THE COMMISSION THEREFORE HEREBY ORDERS AS FOLLOWS: 1. The Commission wishes to express its appreciation for the constructive roles played by important stakeholders in facilitating dialogue and reaffirms its commitment to collaborative regulation in the public interest. However, the final decisions contained in this Order reflect the Commission’s independent assessment of all relevant situations and considerations. 2. Following the constructive engagements with MainPower and other important stakeholders, and having undertaken further review of the relevant issues, the Commission has determined that a revised regulatory approach will better achieve the objectives of the Enugu State electricity market. Accordingly, the Commission orders that its earlier Directive is hereby superseded by the revised measures set out in this Order. 3. The Commission has established that the 60 feeders in question failed to meet their service obligations under the SBT framework in the months of February, March and April 2026. 4. Although the Commission’s regulatory framework does not have any provision for customer compensation in the event of MainPower’s failure to meet its service obligations under the SBT framework, the Commission shall make a one-off exception in this case and approve a compensation arrangement for MainPower’s customers instead of feeder downgrade. This is because of the peculiar circumstances of this case, and more importantly, the fact that the Commission has noted the concerted effort being made by MainPower to improve its services in the State in recent months. 5. MainPower informed the Commission that it had implemented a compensation package for affected customers. Apart from the fact that MainPower did not obtain the Commission’s prior approval for the compensation scheme, and that it was limited to Band A customers only, the Commission’s review of the data supporting the claimed implementation was found to be entirely unsatisfactory. While there was evidence of implementation in favour of some customers, the data showed that many more affected customers were left out. 6. In exercise of its powers under the Enugu State Electricity Law 2023 and its regulations, the Commission hereby further orders as follows: (i) MainPower shall pay compensation to all customers on the affected feeders as provided in the Schedule to this Order for the months of February, March, and April 2026. The compensation shall be at the rate of twenty-five per cent (25%) of the applicable estimated billing caps for each of the feeders during the said three months and shall be in the form of energy units only. (ii) The average of all the caps shall be used to determine the compensation payable to customers who are on feeders without any specific estimation cap. (iii) The compensation shall take into account any compensation that has already been implemented by MainPower in favour of any affected customer before this Order. (iv) MainPower shall fully implement the compensation within a billing cycle of three months from the commencement of this Order. (v) MainPower shall submit to the Commission a comprehensive compliance report upon its full implementation of the compensation package after the third month’s billing cycle in such manner or format as the Commission may determine. (vi) Where MainPower fails or neglects to comply with this Order, the Commission shall invoke its powers under section 32(5) of the Enugu State Electricity Law 2023, which authorises the Commission to impose a fine not exceeding N500,000.00 (Five Hundred Thousand Naira) for each day that MainPower may be in default of compliance with this Order. 7. The compensation arrangement contained in this Order shall not be construed as constituting a framework for customer compensation for any future event of service failure by MainPower under the SBT framework. Accordingly, the Commission restates its commitment to support any sincere effort by MainPower to procure additional capacity outside its share of the Vesting Contract capacity from EEDC. 8. This Order is without prejudice to the Commission’s continuing obligation to monitor the operational or other performance of MainPower, including but not limited to the Commission’s power to monitor MainPower’s performance under the SBT framework. 9. THE COMMISSION NOTES with disfavour the conduct of MainPower in acting contrary to the provisions of section 21(c) of the Enugu State Electricity Law 2023, which requires a licensee, among others, to comply with the directives of the Commission. Consequently, owing to other extenuating circumstances, the Commission hereby imposes a symbolic sanction of N1,000,000 (One Million Naira) only on MainPower. 10. This Order and the obligations created herein shall take effect from 1st August 2026. DATED this 30th day of July 2026 Schedule: Lists all 60 feeders with Energy Caps and 25% Compensation values as printed in the table.