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.

“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.

“Every month and every week we are interacting and keeping an eye on their system — how much energy they distribute, how many customers are on estimated billing, new connections and whether customers are metered immediately. If they do not comply with the rules, the penalties are there,” he said.

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.

“This way, Mainpower does not lose revenue while investors can deliver power directly to consumers using the existing infrastructure,” Okonkwo explained.

The EERC chairman also invited electricity investors and retail companies to take advantage of Enugu’s emerging electricity market by establishing generation and distribution businesses in the state.

He noted that the state is particularly interested in investors willing to responsibly harness its coal resources for power generation while meeting environmental standards.

Okonkwo stressed that improved electricity supply would stimulate economic activities and support businesses that rely on stable power.

“If citizens have reliable electricity and put it to productive use, they grow their businesses, pay taxes and the government can reinvest those revenues in infrastructure,” he said.

He added that transforming the electricity sector would take time, noting that constructing a power plant typically requires between 18 months and two years.

Speaking after receiving the licence, Managing Director of Mainpower Electricity Distribution Company, Dr. Ernest Mupwaya, said the approval provides long-term certainty for the company to implement its transformation strategy.

He explai’ed that the company’s previous approval was an interim licence which has now expired.

“What we have now is a full licence for the next 20 years. That certainty allows us to plan improvement programmes over a longer horizon,” he said.

Mupwaya disclosed that the company has developed a comprehensive transformation plan aimed at strengthening the state’s electricity distribution network.

According to him, the strategy includes improved maintenance, deployment of automation technologies and expansion of metering infrastructure across the state.

He said the company aims to eliminate estimated billing by ensuring that all electricity consumers are metered by 2027.

“We will crash the entire metering gap by 2027. Every customer must have a meter,” he said.

The Mainpower boss acknowledged that parts of the distribution infrastructure are ageing, with some components of the network dating back nearly 40 years.

However, he assured residents that the company would implement phased improvements to modernise the system.

“In the short term we will enhance maintenance to improve service delivery. In the medium to long term we will replace and renew ageing assets and reconfigure the network,” Mupwaya said.

He added that both the regulator and the company’s board would track performance through agreed key performance indicators to ensure steady improvement in electricity supply.

“Our success will ultimately be judged by customers. They will see continuous improvement step by step,” he said. (Sunday Sun)