Electricity Act: EERC Issues 20-Year Power Distribution Licence

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The Enugu State Electricity Regulatory Commission (EERC) has issued a 20-year electricity distribution licence to MainPower Electricity Distribution Limited (MPEDL), in line with the Electricity Act 2023 and the Enugu State Electricity Law 2023.

The licence authorises MainPower to distribute electricity to customers across Enugu State, marking a significant step in the state’s effort to establish a functional and efficient electricity market.

Speaking during the licence presentation in Enugu on Friday, the Chairman of EERC, Chijioke Okonkwo, said the company successfully met all regulatory requirements set by the commission, making it the first distribution company to receive such a licence under the state’s new electricity framework.

Okonkwo described the development as historic and a major milestone in the commission’s efforts to strengthen regulatory oversight of the electricity sector in Enugu State.

He explained that MainPower is a subsidiary of the Enugu Electricity Distribution Company (EEDC) and was created specifically to assume the assets, liabilities, personnel and operational responsibilities of EEDC within Enugu State.

According to him, the company will operate under the sub-national electricity market structure introduced 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,” Okonkwo stated.

He added that the milestone was made possible through the formulation of the Enugu State Electricity Policy and the enactment of the state’s electricity law in 2023.

Okonkwo further disclosed that EERC assumed full regulatory oversight of the electricity sector in the state in October 2024. The commission’s mandate, he said, includes developing an efficient electricity market and ensuring universal access to power for residents.

He noted that the electricity market structure adopted by the state operates on a “willing buyer, willing seller” commercial model, supported by contracts, bilateral agreements and power purchase agreements among market participants.

Reacting to the development, the General Manager of MainPower Electricity Distribution Limited, Ernest Mupwaya, described the licence as a major milestone for the company.

He said the company is fully aware of the responsibility that comes with managing electricity distribution in the state and is committed to improving service delivery.

Mupwaya revealed that MainPower has already developed a comprehensive transformation plan aimed at strengthening different aspects of its distribution operations.

According to him, the plan is designed to ensure that electricity customers experience continuous improvements in service delivery over time.

He emphasised that strong collaboration among stakeholders in the electricity sector would be necessary to achieve the desired transformation and sustain the growth of the electricity market in Enugu State.

Mupwaya also described the issuance of the licence as the beginning of a long-term operational journey for the company, noting that the licence grants MainPower the mandate to manage electricity distribution in the state for the next two decades.

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