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From Jude Chinedu, Enugu
The Enugu Electricity Regulatory Commission (EERC) on Friday issued a 20-year electricity distribution licence to Mainpower Electricity Distribution Limited, marking a significant step in the state government’s push to reform the power sector and attract private investment.
The licence was formally presented at the commission’s conference room in Enugu after what officials described as a rigorous evaluation of the company’s operational capacity, financial health and tariff applications.
Chairman of EERC, Chijioke Okonkwo, said the approval forms part of the state’s broader strategy to establish a functional subnational electricity market capable of attracting multiple investors across the generation, transmission and distribution value chain.
Okonkwo explained that the initiative aligns with the vision of Governor Peter Mbah to expand Enugu State’s economy from $4.4 billion to $30 billion through increased private sector investment and improved infrastructure.
According to him, the commission spent more than one year and six months reviewing Mainpower’s documentation, verifying operational data and analysing its financial and technical capacity before granting the licence.
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“We are trying to develop a market, and a market cannot be made up of only one player,” he said.
“Mainpower is currently the dominant distributor in the state, but the establishment of a subnational electricity market opens the door for other investors to come in and compete.”
Okonkwo said the licence comes with strict monitoring mechanisms and performance benchmarks designed to ensure improved electricity supply for residents.
He disclosed that the commission would closely track the company’s operations through regular engagement and performance monitoring.
He further explained that under the new framework, Mainpower’s distribution network would remain open to other electricity operators interested in supplying power to customers within the state.
This arrangement allows industrial clusters, commercial districts and communities to sign power purchase agreements with generation companies and utilise Mainpower’s infrastructure to transmit electricity to their locations, while paying a distribution-use-of-system charge.
