"Power Play: EERC Grants 20-Year Electricity Distribution License Under New Act"

In line with the Electricity Act 2023 and the Enugu State Electricity Law 2023, Enugu State Electricity Regulatory Commission, EERC, on Friday, issued a 20-year distribution licence to MainPower Electricity Distribution Limited, MPEDL.

With the licence, MainPower will be responsible for distributing electricity to customers across Enugu State.

Speaking during the issuance of the licence in Enugu, Chairman of EERC, Mr Chijioke Okonkwo said MPEDL met the commission’s requirements to become the first distribution company to receive the licence.

According to him, the development marked another milestone as the commission continued to exercise regulatory oversight over the electricity sector in the state.

Okonkwo described the event as historic, noting that MainPower, a subsidiary of the Enugu Electricity Distribution Company (EEDC), was specifically established to take over the assets, liabilities, personnel and operations of EEDC in Enugu State.

He explained that the company would operate under the sub-national electricity market framework provided for by the Electricity Act 2023 and the Enugu State Electricity Law 2023.

“MainPower is officially the first subgroup to be issued its operating licence to provide electricity services over the next 20 years in Enugu State,” he said.

Okonkwo attributed the achievement to the formulation of the Enugu State Electricity Policy and the subsequent enactment of the state’s electricity law in 2023.

He disclosed that the commission assumed full regulatory oversight of the electricity sector in Enugu State in October 2024, with a mandate to develop an efficient electricity market and ensure universal access to power.

Okonkwo explained that the electricity market structure is based on a “willing buyer, willing seller” commercial framework supported by contracts, bilateral agreements and power purchase agreements between participants.

Responding after receiving the licence, the General Manager of MainPower, Ernest Mupwaya, expressed satisfaction, describing the development as a major milestone for the company.

“It’s a great pleasure for us at MainPower to receive this licence.

We are very mindful about our responsibility to the company and to the entire stakeholders in the state.

“We understand that to have a robust electricity market, you must have a very strong distribution company because the distribution company is the face of the entire electricity value chain,” he said.

According to him, electricity customers interact directly with distribution companies, making them the key representatives of service delivery across the entire power sector value chain.

He disclosed that the company had already developed a comprehensive transformation plan aimed at improving different aspects of its distribution operations.

“For this reason, I would like to share that we have developed a very robust transformation plan that will tackle various aspects of the distribution business so that at the end of the day customers are going to see continuous improvement. They are going to experience better service over time,” he said.

Mupwaya emphasised that achieving those improvements would require the support of all stakeholders in the electricity market.

“We cannot achieve this alone. We will need strong stakeholder support. All stakeholders must support the journey of ensuring that the market is developed and sustained by a strong distribution company.

“With the enabling environment and their support, customers will begin to see continuous improvement going forward,” he said.

He described the issuance of the licence as the beginning of a long-term journey for the company, noting that the licence covers a 20-year operational period.