NERC to States: Slash Tariffs, Pay the Subsidy
The Nigerian Electricity Regulatory Commission (NERC) has warned that states cutting electricity tariffs must cover the shortfall through subsidies.
This comes after Enugu State reduced Band A tariffs from N209/kWh to N160/kWh. NERC stated that states lack control over the national grid and must reflect full generation and transmission costs in their pricing or risk distorting the power market.
Power firms and industry groups criticized the move, stressing that only states generating and distributing their own power can set tariffs. NERC is now engaging Enugu authorities over the decision.
