The Nigerian Independent System Operator (NISO) has intervened in the crisis between the Enugu State Electricity Regulatory Commission (EERC) and the Enugu Electricity Distribution Company (EEDC) over the recent downward review of electricity tariffs in the state.

Tribune Online recall that EERC’s recent decision to slash tariff for Band A customers from N209 to N160 per kWh was met with stiff resistance by the EEDC, which cut power supply to Enugu State by up to 50 per cent in reaction to the state regulator’s order adjusting tariffs.

Speaking at a Stakeholder Engagement on Tariff Adjustment in Enugu State by EERC on Wednesday in Abuja, the Managing Director/CEO, NISO, Engineer Abdu Mohammed Bello, said the intervention became necessary as steps must be taken to see that nothing affects the stability of the Nigerian Electricity Market, the integrity of contracts and operational obligations that guarantee reliable supply.

According to him, NISO, as an agency, has the mandate to manage the nation’s electricity grid and electricity market operations, as well as safeguard the integrity of the market settlement framework and ensure that contractual obligations are respected.

Engineer Mohammed Bello emphasised that fair electricity pricing, sustainable business operations and a stable market were mutually beneficial goals that could only be achieved through transparency, coordination and mutual respect among regulators, operators and other stakeholders.

He stated that while the Electricity Act 2023 empowers state regulators like EERC to set tariffs within their jurisdictions, NISO’s statutory mandate under the Act, Market Rules and Grid Code allows NISO to maintain both the commercial balance and technical stability of the market.

The NISO chief said, “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. This development, while within the remit of state-level regulatory authority under the Electricity Act 2023 (as amended), has naturally drawn significant attention from different quarters of our industry.

“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%. Such a measure, if implemented, could have serious operational implications, particularly at the TCN–DisCo interfaces where power transfer capacity Service Level Agreements (SLA) are managed.

“It has also prompted necessary questions about how such decisions interact with the operations, dispatch, commercial arrangements, and financial equilibrium of the Nigerian Electricity Supply Industry as a whole. Hence, this intervention meeting is to ensure that no action disrupts the Nigerian Electricity Market stability, the integrity of contracts, or operational obligations that guarantee reliable supply.

He added, “Let me be clear from the outset: NISO approaches this discussion with neutrality, respect, and an open mind. We are not here to question the authority of the Regulator or the Operators. We fully recognise the statutory powers of the Enugu State Electricity Regulatory Commission to regulate activities within its jurisdiction, and equally acknowledge the license and operational responsibilities of the Enugu Electricity Distribution Company in serving its customers.

“Our mandate obliges us to safeguard the integrity of the market settlement framework, ensure contractual obligations are respected and maintain the delicate balance that allows every participant, from Generators to Distributors, from Regulators to Consumers, to operate in a financially sustainable and technically reliable environment.

“We believe that fair electricity prices, sustainable business operations and a stable electricity market are not mutually exclusive goals; they are interdependent. Achieving all three requires dialogue, transparency and coordination among all relevant institutions.” (Nigerian Tribune)