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Power distribution permit granted by EERC for 20 years

Enugu State Electricity Regulatory Commission (EERC) granted MainPower Electricity Distribution Limited (MPEDL) a 20-year distribution licence on Friday, in accordance with the Electricity Act 2023 and the Enugu State Electricity Law 2023.

After receiving the licence, MainPower would be in charge of delivering power to homes and businesses all over Enugu State.

At the licence issue ceremony in Enugu, Mr Chijioke Okonkwo, chairman of the EERC, stated that MPEDL was the first distribution business to acquire the licence since it fulfilled all of the commission’s standards.

He said this was a big deal since it showed the commission was still keeping an eye on the state’s power industry.

Noting that MainPower was formed to assume full responsibility for the assets, liabilities, employees, and operations of the defunct Enugu Electricity Distribution Company (EEDC) in Enugu State, Okonkwo characterised the occasion as momentous and historic.

The Electricity Act of 2023 and the Enugu State Electricity Law of 2023, he said, would establish the basis for the company’s operations in the sub-national electricity market.

It was announced that MainPower will be the first subgroup in Enugu State to receive an operating licence, allowing them to supply power for the next two decades.

The success, according to Okonkwo, was due to the 2023 passing of the state’s power legislation and the subsequent development of the Enugu State power Policy.

He said that in October 2024, the commission took over all regulatory responsibilities for Enugu State’s power sector, with the goal of creating a universally accessible and efficient power market.

Power purchase agreements, bilateral agreements, contracts, and the “willing buyer, willing seller” commercial framework are the foundation of the electricity market, according to Okonkwo.

Following the licensing, Ernest Mupwaya, MainPower’s general manager, responded with satisfaction, hailing the development as a watershed moment for the organization.

“MainPower is delighted to get this licence. We take our obligations to the business and all of the state’s constituents seriously.

“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 stated.

Customers are the most important representatives of service delivery along the power sector value chain since they engage directly with distribution businesses, in his opinion.

He revealed that a thorough transformation strategy had been created by the organization to enhance several parts of its distribution operations.

So, I’m happy to report that we’ve come up with a solid transformation strategy to improve our distribution business in a number of ways, all with the goal of providing our consumers with better service over time. “Over time, they will experience better service,” he promised. All parties involved in the power market would need to rally behind these reforms, Mupwaya stressed.

We need each other to succeed. The backing of key stakeholders is essential. A robust distribution company is essential to the development and maintenance of the market, and all players must back this endeavour.

Customer satisfaction will increase as a result of “the enabling environment and their support,” he promised.

The issuing of the permit, he said, marked the start of the company’s long-term adventure; the licence covers 20 years of operations.

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