NERC releases law on direct power purchase from Gencos

The Nigerian Electricity Regulatory Commission on Monday released the newly-approved eligible customers’ law and outlined the terms that would guide the direct purchase of electricity by end-users from power generation companies.

Babatunde Fashola PHCN power supply

In May this year, the Minister of Power, Works and Housing, Babatunde Fashola, declared that eligible power consumers would be free to purchase electricity directly from the Gencos.

By declaring eligible customers, the minister empowered the consumers to buy electricity directly from licensees other than the power distribution companies, a development that the Discos opposed.

But despite the Discos’ opposition to the law, NERC on Monday presented the approved terms to Fashola in Abuja, and announced that the 11 electricity distribution companies had been designated as suppliers of last resort in the trading framework of the new law.

Going by their new designation, the Discos which may lose a good number of their high demand customers, will become standby suppliers of electricity to eligible customers if the power users’ contracted suppliers inadvertently fail to meet up with the required supplies at any time.

The Vice Chairman, NERC, Sanusi Garba, who presented the law to the minister, explained that the regulation was a product of extensive consultations with relevant stakeholders in Lagos, Kano, Yola, Jos, Port Harcourt, Enugu and Abuja.

 

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