The electricity Distribution Companies (DisCos) on Wednesday denied claims that it pressured the Nigerian Electricity Regulatory Commission (NERC) into suspending the trading of electricity under the Eligible Customer Regulation (ECR) 2017.
It said NERC had in a letter to the Transmission Company of Nigeria (TCN) confirmed suspension of the bilateral electricity trade because such customers were yet to meet requirements that include requisite energy demand, proof of excess capacity by the GenCos to supply the energy, payment of requisite charges and fees to exit conventional network, and getting eligible status from NERC.
This was contained in a statement issued by their umbrella body, the Association of the Nigerian Electricity Distributors (ANED) and signed by its Executive Director, Research & Advocacy, Barr. Sunday Oduntan.
It said the regulation was not cancelled has widely believed but suspended to check illegality” that has been perpetrated by these unscrupulous companies and their supplier GenCo who have gone rogue for four years unchecked.”
“In response to the insinuation that NERC and the DisCos are colluding to frustrate the implementation of the Regulation, we wish to state unequivocally that this is untrue, unfounded, preposterous, and irresponsible of the stakeholders who have failed to meet the requirements of the Regulation and attempting to pass the buck.
The statement noted that available records indicate that NERC has not approved any application for eligible customer status adding that despite this, “ companies proceeded to arrogate the powers of NERC to themselves by vesting in themselves eligible customer status and continued the unlawful and illegal operations over the years unperturbed.”
It said the damaging impact of these illegal “eligible customers” on the electricity market and the entire value chain, led to the issusnce of the directive with Ref. No: NERC/REG/OCFML/APPR/EC/2655/068, dated 7th July, 2021, to the Transmission Company of Nigeria (TCN) to transfer back to the Distribution Companies all electricity customers that failed to obtain eligibility status under its Eligible Customer Regulations 2017 -Regulation No. NERC 111.”
The DisCos’ association noted that the Eligible Customer Regulation (ECR) 2017 effective 1st November 2017, is derived from the Electric Power Sector Reform Act (EPSRA) 2005, which gives the Minister of Power the authority to declare the commencement of the Eligible Customers Regime.
It further stressed that the Regulation also empowers NERC to administer the regime and receive applications for eligibility customer status and to review or grant approval where conditions have been met by such applicants.
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