MainPower Electricity Distribution Limited (MEDL) has attributed the power outages that parts of Enugu State are experiencing to a significant drop in energy allocation from its parent company, Enugu Electricity Distribution Company (EEDC).
A statement by MEDL indicated that the development is a result of the recent issuance of a new Tariff Order to MainPower by the Enugu Electricity Regulatory Commission (EERC). The Order resulted in a reduction of the tariff for Band A customers from N209.50/kWh to N160.40/kWh.
According to the statement: “Upon receipt of the Tariff Order, MEDL, by obligation, promptly updated EEDC (our energy supplier). 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 its obligations to the market.
“Consequently, and to mitigate these losses, EEDC made the difficult decision to reduce the volume of energy supplied to MEDL. This has unfortunately resulted in MEDL receiving only about 50% of its usual energy allocation, significantly affecting our ability to serve some of our esteemed customers.”
However, MEDL clarified that it does not receive electricity directly from the National Grid but relies on EEDC, which has a vesting contract with the Nigerian Bulk Electricity Trading (NBET) for electricity bulk trading.
“It is important to clarify that MEDL does not receive electricity directly from the National Grid. Instead, we rely solely on EEDC, which holds the vesting contract agreement with the Nigerian Bulk Electricity Trading (NBET), the organization responsible for electricity bulk trading.”
MEDL, while apologizing to its customers for the inconvenience this situation has caused, assured that discussions are ongoing with key stakeholders at the state and federal levels (including EEDC, EERC, NERC, NISO, and NBET) to quickly resolve the issue.
“We are hopeful that a resolution will be reached within the next 48 hours or soon thereafter.
“We also acknowledge that this communication is coming later than expected. The delay was due to the short notice with which we received the full details of the development. We appeal for your continued patience, calm, and understanding as we work diligently with the relevant authorities to restore normal service as soon as possible.”