Group under the aegis of the Forum for Commissioners of Power and Energy in Nigeria (FOCPEN), has lambasted the Enugu Electricity Distribution Company (EEDC) for the recent 50% power reduction, causing ongoing outages in parts of the state.
In a statement jointly signed by the Chairman, Prince Eka Willians, and Secretary, Barr. Omale Omale, the Forum strongly condemned the DisCo’s decision to reduce power to the Enugu State electricity market.
Recall that the Management of Mainpower Electricity Distribution Limited (MEDL) on Monday blamed the outages in parts of Enugu State on reduced load allocation by the EEDC.
Mainpower explained that the development was as a result of the recent issuance of a new Tariff Order to Mainpower by the Enugu Electricity Regulatory Commission(EERC), which reduced the tariff for Band A customers from N209.50/kWh toN160.40/kWh.
It noted that upon receipt of the Tariff Order, the company by obligation, promptly updated EEDC-its energy supplier.
MEDL said after analyzing 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, it said to mitigate these losses, EEDC made the difficult decision to reducethe volume of energy supplied to MEDL.
However, FOCPEN said the unilateral action by EEDC was not merely a regulatory dispute with the Regulator, but a declaration of war on the good people of Enugu State by EEDC.
“EEDC’s reckless action is a grave violation of its license obligations under existing national electricity regulations. EEDC’s action is also a clear demonstration of the flawed privatization process that has empowered private investors of DisCos to deprive citizens of essentialel ectricity services with impunity,” it said.
FOCPEN argued that if MainPower or EEDC believe the tariff as set by the Regulator is inadequate, the appropriate and legal path is to seek a review through established regulatory processes. Adding that to resort to an arbitrary disconnection or reduction of power by up to 50% to a State, smacks of blackmail by EEDC.
“EEDC’s action also portends grave danger for consumer rights in the NESI, and undermines the ongoing implementation of State Electricity Markets (SEM).
“Furthermore, it exposes the alarming market power of DisCos to hold electricity regulators at sub-national and at the federal level, to ransom.
“EEDC’s action sets a dangerous precedent for other DisCos to undermine the successful implementation of the Electricity Act2023 and decentralization of electricity regulations,” the Forum said.
It therefore called on the Nigerian Electricity Regulatory Commission (NERC) to immediately call EEDC to order. Noting that NERC, as the current regulator of EEDC, must investigate the matter thoroughly and sanction this unacceptable action by EEDC, which it believes has no regulatory approval from NERC.
To prevent reoccurrence, the Group demanded the following: “Ministerial Intervention: FOCPEN calls upon the Hon. Minister of Power, Chief Bayo Adelabu, to immediately intervene and prevail upon NERC and EEDC to reverse the power cuts and restore electricity to the people of Enugu State. As the chief policy maker for the sector, the Minister must take decisive action to stop the lawlessness by DisCos who can arbitrarily and without consequence deprive citizens of electricity.
“Regulatory Reform of the Wholesale Market: NERC must develop appropriate regulations that would allow SubCos enter into bilateral contracts with GenCos to procure wholesale power from the national grid. Such regulation may include a mandate for NBET to enter into direct or interim Power Purchase Agreements (PPAs) with SubCos. The current arrangement, where SubCos receive power through their HoldCos is an anti-competitive practice that limits their operational autonomy within SEMs and creates a potential for abuse, as evidenced by the current crisis.
“Apply Regulatory Sanctions against EEDC: NERC must sanction EEDC for its actions. The Commission must prove that it has the teeth to regulate the NESI as the apex regulator and protect consumers from the tyranny of powerful Successor DisCos HoldCos that are currently its licensees.”
FOCPEN said it would continue to monitor the situation closely and would not hesitate to take further action to ensure the rights of consumers, saying that it stands in solidarity with the people of Enugu State and called on all relevant authorities to address the crisis with the urgency it deserves.
