The Minister of Power,Works and Housing, Mr. Babatunde Fashola, has
declared that eligible power consumers are now free to purchase
electricity directly from power generation companies, GENCOs.
Fashola, by this major policy directive, has empowered consumers to buy
electricity directly from a licensee other than power distribution
companies, DISCOs. Explaining the development in Abuja, Head, Public
Affairs Department at the Nigerian Electricity Regulatory Commission,
NERC, Dr. Usman Arabi said the declaration was in line with provisions
of Section 27 of the Electric Power Sector Reform Act, 2005.
His words: “In exercising the power conferred on him by the said Act,
the Honourable Minister of Power Works and Housing, directed the
Nigerian Electricity Regulatory Commission to permit four categories of
customers to buy power directly from a licensee other than electricity
distribution companies. “The first category of eligible customers
comprises of a group of end-users registered with the Commission whose
consumption is no less than 2MWhr and connected to a metered 11kV or
33kV delivery point on the distribution network and subject to a
distribution use of system agreement for the delivery of electrical
energy.
“The next category of eligible customers are those 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. “Other category of customers under the declaration consists of
those with consumption in excess of 2MWhr 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 licensed to operate in the
location, for the construction, installation, and operation of a
distribution system for connection to the 33kV delivery point. “The last
category are eligible customers whose minimum consumption is more than
2MWhr over a period of one month and directly connected to the
metering facility of a generation company, and has entered into a
bilateral agreement for the construction and operation of a distribution
line with the distribution licensee licensed to operate in the
location.
“The new policy directive is expected to bring into play new and
stranded generation capacities which may be contracted between
generation companies and eligible customers. The declaration further
provides that at least 20% of the generation capacity added by the
existing or prospective generation licensee to supply eligible customer
must be above the requirement of the eligible customer and is supplied
under a contract with a distribution or trading licensee at a price not
exceeding the average wholesale price being charged electricity
distribution companies by the Nigerian Bulk Electricity Trader Ltd. “The
conditions for the declaration of eligible customer is subject to
review by the Nigerian Electricity Regulatory Commission from time to
time.”
