NERC approves, submits regulation for eligible customers

NERC

In line with the Federal Government’s (FG’s) declaration on eligible customers, the Nigerian Electricity Regulatory Commission ( NERC) has approved and submitted regulation for this purpose.

It said the regulations were put together after consultation with stakeholders which took place in six states namely; Lagos, Yola, Kano, Enugu, Jos and Abuja.

The Commission’s Vice-Chairman, Engr Sanusi Garba who presented 10 copies of the eligible customers’ regulations to the Minister of Power, Works and Housing, Babatunde Fashola in Abuja on Monday said this was approved on November 1, 2017.

On May 15, 2017, the Minister of Power, Works and Housing, Mr. Babatunde Fashola, issued a policy directive to Nigerian Electricity Regulatory Commission (NERC) declaring four categories of eligible customers in the Nigerian Electricity Supply Industry (NESI) in accordance with Section 27 of the Electric Power Sector Reform Act (EPSRA).

The directive was obviously issued to address the liquidity crisis across the entire value chain of the power sector.

An eligible customer is a customer that can purchase power from a licensee, other than a distribution licensee (Section 100 of EPSRA).

The categories of customers who can now buy power directly from the Generation Companies (Gencos) as stated by the Minister are:

“Eligible customers comprising of a group of end-users whose consumption is no less than 2MWhr/h, and are connected to a metered 11kV or 33kV delivery point on the distribution network, subject to a distribution use of system agreement for the delivery of electrical energy.

“Eligible customers who are connected to a metered 132kV or 330kV delivery point on the transmission network under a transmission use of system agreement for connection and delivery of energy.

“Eligible customers with consumption in excess of 2MWhr/h on monthly basis and connected directly to a metered 33kV delivery point on the transmission network, under a transmission use of system agreement. Eligible customers in this category must have entered into a bilateral agreement with the distribution licensee licenced to operate in the location, for the construction, installation and operation of a distribution system for connection to the 33KV delivery point.

“Eligible customers whose minimum consumption is more than 2MWhr/h over a period of one month and directly connected to the metering facility of a generation company. Such eligible customers must have entered into a bilateral agreement for the construction and operation of a distribution line with the distribution licensee licenced to operate in the location.”

In his response, the Minister said the new development would help improve distribution capacities and also encourage investors.

He reaffirmed that the regulations were put together after consultation with stakeholders, urging members of the public to participate in such forums to have a say in government’s decisions as it affects them.

“I am not unmindful of the steps you have taken in respect to the declaration of eligible customers; you make the rules, prescribe sanctions and implement them. As long as I am here, I will ensure that your independence is unhindered.

“This process did not come just by sitting in the office, NERC makes consultations, members of the public should participate in subsequent ones.”

He further urged the commission to upload the new regulations on its website.

S-Davies Wande

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