EEDC blames tariff reduction by Enugu Electricity Regulatory Commission for poor power supply in Enugu


Enugu Electricity Distribution Company PLC, EEDC the parent company of  Mainpower Electricity Distribution Limited, MEDL seems to have come under great fire for its decision to reduce power supply in some parts of Enugu State by 50 percent.

Mainpower Electricity had in a public announcement informed its esteemed customers who have been experiencing power outages over the past five days that the situation is due to a significant drop in energy allocation from its parent company.

This development is coming shortly after Enugu Electricity Regulatory Commission, EERC issued  a new Tariff Order to Mainpower to reduce the tariff for Band A customers from N209.50/kWh to N160.40/kWh.

Upon receipt of the Tariff Order, Mainpower by obligation, promptly updated EEDC being its energy supplier, who  after analyzing the implications of the new tariff, 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, and to mitigate these losses, EEDC who has come under heavy criticism says considering the huge loss such unguided decision would cause, it has resorted to making the difficult call to reduce the volume of energy supplied to MEDL in Enugu.

This has unfortunately resulted in MEDL receiving only about 50% of its usual energy allocation, significantly affecting its ability to serve some of its esteemed customers.

While words on the street queries the decisions of EERC, it is important to state that MEDL does not receive electricity directly from National Grid, but rather solely depends on EEDC, which holds the vesting contract agreement with the Nigerian Bulk Electricity Trading (NBET), the organization responsible for electricity bulk trading.




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