EEDC halts operations in Enugu as subsidiary obtains licence from EERC

The Enugu Electricity Distribution Company (EEDC) has transferred its operations in the state to its subsidiary, Mainpower Electricity Distribution Limited.

According to a report by the News Agency of Nigeria (NAN), Mainpower Electricity took over from EEDC on Tuesday after obtaining a licence from the Enugu State Electricity Regulatory Commission (EERC), which commenced electricity regulatory duties the same day.

On April 22, the Nigerian Electricity Regulatory Commission (NERC) transferred oversight of the electricity market in Enugu state to the EERC.

Also, NERC directed the EEDC to establish a subsidiary (EEDC SubCo) to take over the duties of supplying and distributing electricity within Enugu state from the power distribution company (DisCo).

Speaking at the event marking the completion of the transition period for the transfer of regulatory oversight, Chijioke Okonkwo, chairman of EERC, described the transfer of regulatory authority to the EERC as “significant.”

According to Okonkwo, the development marks the start of establishing sub-national electricity markets, not only in Nigeria and West Africa but across the African continent.

Okonkwo said Mainpower Electricity will commence operations in Enugu state starting from Wednesday.

He added that following the enactment of the Enugu State Electricity Law in 2023 and the establishment of the EERC, Enugu became the first state in April to be granted regulatory authority over its electricity market by NERC.

Okonkwo said after a six-month transition period, which ended on Tuesday, the state is now fully empowered to exercise its constitutional right to develop its electricity sector.

The development covers the entire value chain of generation, transmission, distribution and retailing services, as well as mini-grid and off-grid electrification solutions.

“Today completes the six-month transition for the transfer of regulatory authority from the national regulator, NERC, to the EERC, as stipulated in Section 230 of the Electricity Act 2023, and the consequential order of NERC, dated April 22,” Okonkwo said.

“Today, we now take on the monumental responsibility of regulating and guiding the electricity sector in Enugu state.

“This assumption of regulatory oversight is not just about the transfer of authority, but represents a shared vision for a more efficient, responsive, and innovative electricity market.

“NERC has laid a strong foundation, and we are confident that EERC will build on that legacy to bring about positive changes for the people of Enugu state and beyond, in line with Enugu’s realities.”

‘EERC COMMITTED TO COST-REFLECTIVE ELECTRICITY SUPPLY’

Okonkwo affirmed the commission’s commitment to ensuring reliable, cost-effective, and sustainable electricity supply for all residents and businesses in the state while promoting fairness and innovation in the sector.

The EERC boss commended the administration of Peter Mbah, governor of Enugu, for maintaining zero political interference in the commission’s activities.

“I must say that we have enjoyed a tremendous level of independence from the state government activities and our own role,” he said.

“We have been established and supported to take off.

“However, we have also been given the authority and independence to develop the regulations and policies that we have put in place, not minding how they impact on the state government.”

Also, the EERC chairman said Fedikore Limited, the first independent power project (IPP) in the state, was also granted a licence to construct a power plant with a capacity of 10 megawatts.

‘WE’LL HAVE IMPROVED ELECTRICITY SERVICE IN ENUGU’

Kester Enwereonu, a board member of Mainpower Electricity Distribution Limited, assured the state’s residents of an improved and comprehensive electricity experience.

“We are not just identifying with EERC as the pacesetter, Mainpower will also want to be the pacesetter,” Enwereonu said.

“We are assuring you that in the coming weeks, months, and years, we are going to have an improved service to the people of Enugu State.”

Also, Chukwueloka Umeh, the founder and managing director of Fedikore Limited, called the development in Enugu revolutionary and expressed his company’s excitement about partnering with the EERC.

“The EERC has done a fantastic job in starting this revolution that is about to happen and we are pleased to be a part of it,” Umeh said.

“Fedikore was set up last year as the first IPP in Enugu state. We built four megawatts plant at 9th Mile to supply power to the Enugu State Water Corporation here in Enugu.”

Umeh said the company is committed to working with the state and EERC.

In a statement by EEDC, the company said with the presentation of an interim distribution license to Mainpower Electricity, its operations in Enugu have ended.