EERC grants 20-year electricity distribution licence to MainPower

The Enugu State Electricity Regulatory Commission (EERC) has issued a 20-year electricity distribution licence to MainPower Electricity Distribution Limited to distribute power to customers across Enugu State.

Speaking during the presentation of the licence, the Chairman of EERC, Chijioke Okonkwo, commended the company for meeting the commission’s regulatory requirements, noting that it is the first distribution company to receive such a licence under the state’s electricity regulatory framework.

Okonkwo described the development as a significant milestone as the commission continues to strengthen regulatory oversight of the electricity sector in the state.

He explained that MainPower Electricity Distribution Limited, a subsidiary of the Enugu Electricity Distribution Company (EEDC), was established to take over the assets, liabilities, personnel and operations of EEDC within Enugu State.

According to him, the company will operate under the sub-national electricity market structure created by the Electricity Act 2023 and the Enugu State Electricity Law 2023.

“Today marks another important milestone as EERC continues to exercise regulatory oversight over the electricity sector within Enugu State. MainPower is officially the first entity to receive an operating licence to provide electricity services over the next 20 years in the state,” Okonkwo said.

He added that the state’s electricity market model allows multiple participants across the power value chain, including fuel suppliers, generation companies, distribution firms and electricity retailers.

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

He noted that the market design also encourages generation companies to establish embedded generation facilities within the state and connect directly to the distribution network to deliver reliable and sustainable electricity to consumers.

The EERC chairman added that, in the future, electricity trading across the distribution network among licensees would help strengthen supply from the national grid and the wholesale electricity market

Okonkwo stressed that as the dominant player in the state’s electricity market, MainPower is expected to play a major role in developing the sector.

He urged the company to expand its distribution infrastructure, promote competition in service delivery and implement systems that will improve service to consumers.

The chairman also assured investors and developers of the commission’s readiness to support growth in the electricity sector, adding that potential partners would be directed to MainPower to explore investment opportunities in the evolving power market.

Responding after receiving the licence, the General Manager of MainPower Electricity Distribution Limited, Ernest Mupuwaya, described the development as a major milestone for the company.

Mupuwaya said the firm is fully aware of its responsibility to stakeholders and electricity consumers across Enugu State, assuring residents of improved service delivery.

He noted that the company has developed a comprehensive transformation plan aimed at improving various aspects of its distribution operations.

According to him, the plan is designed to ensure continuous improvement in electricity services and better customer experience over time.

Mupuwaya emphasised that achieving these goals would require the support of all stakeholders in the electricity market and commended EERC for its regulatory backing.

He added that the 20-year licence marks the beginning of a long-term journey for the company and expressed confidence that MainPower would grow to compete with leading electricity distribution companies globally.

Culled from vanguard