… grants customers using 6MW+ access to third-party transmission, distribution infrastructure

Oredola Adeola

The Nigerian Electricity Regulatory Commission (NERC) has revealed that customers using six megawatts (MW) or more over a 90-day period can now access third-party transmission and distribution infrastructure under the eligible customers status.

This move, according to NERC, was designed to encourage retail electricity market competition and enable generation companies (GenCos) to expand their capacity to serve both distribution companies (DisCos) and eligible customers.

This information was disclosed during a meeting organized by NERC for stakeholders in the Nigerian Electricity Supply Industry (NESI) on the Eligible Customer Regulations (ERC) 2024, held on Tuesday.

Dr. Musiliu Oseni, NERC Vice Chairman, chaired the meeting and stated that the objective of the conference was to provide updates on the regulations to NESI operators.

According to Dr. Oseni, the objective of the regulations is to implement the provisions of the amended Electricity Act (EA) by providing standard rules that will facilitate competition in electricity supply and improve the quality of supply.

He also mentioned that the regulations aim to encourage third-party access to transmission and distribution infrastructure to stimulate retail electricity market competition.

Additionally, Oseni emphasized that the regulation is intended to allow licensed GenCos with the uncontracted capacity to access unserved and underserved customers, thereby improving the financial liquidity of the electricity industry.

During the meeting, stakeholders received clarifications about the registration process at NERC, which stipulates that customers who utilize six megawatts (MW) or more can qualify for the status of eligible customers.

NERC revealed that upon attaining Eligible Customer (EC) status, these large power users can contract to purchase electricity directly from GenCos.

Advisors Reports’ check showed that the NERC’s regulations cater to eligible customers seeking alternative electricity suppliers beyond their traditional distribution companies (DisCos).

These customers (Point to Point Connection) are directly connected or will be connected to a generation facility via a metered 33kV delivery point.

The regulations provide a detailed arrangement for DisCos to earn a Competition Transition Charge (CTC) due to any revenue loss resulting from eligible customers receiving supply from other licensees.

Other forms of eligible customers are

Those end-users who were unconnected but are planning to consume at least 10MWh/h over 90 days. They must be connected to a metered 33kV delivery point on the distribution network and have agreements in place for energy delivery.

The customers who are already connected to the distribution network but seeking eligibility, they typically have consumption levels similar to those in the second class. They must meet the same consumption criteria and have appropriate agreements with distribution licensees.

The next category of end-users are customers with substantial consumption levels, often not less than 20MWh/h over 90 days. They are directly connected to a metered 132kV or 330kV delivery point on the transmission network and have agreements in place for energy delivery.

This last category applies to unconnected end-users with planned consumption levels of at least 20MWh/h over 90 days.

The Commission said that this category of customers must be connected to a metered 132kV or 330kV delivery point on the transmission network and have relevant agreements in place.