NERC Releases Regulations On Direct Power Purchase

The Nigerian Electricity Regulatory Commission (NERC) has released  regulations to guide  the implementation of the customer eligibility in the Nigerian Electricity Supply Industry (NESI).
The Minster of Power, Works and  Housing, Mr Babatunde Fashola while receiving  the regulations in Abuja said declaration of customer  eligibility would  help  improve capacity  for distribution of electricity to eligible  consumers.
Fashola had on May 15, declared four categories of eligible customers in NESI.
The declaration, which permits some categories of electricity customers to buy power directly from the generation companies, was  in line with the provisions of Section 27 of the Electric Power Sector Reform Act 2005.
The section enabled eligible customers to buy power from a licensee other than electricity distribution companies.
“ Let me recap again, you are the statutory umpire to this sector; you make the rules; you proscribe the sanctions and you implement them.
“Our role as a ministry is to make policy statements; as long as I am here, I will ensure that your independence on making of rules remain unhindered.”
He  said  the  presentation of the  much  awaited  document  would  further  help improve the  distribution  of power for consumers who needed them.
He also explained that consumers who were also ready to make investment in  providing distribution assets by themselves  in a way to recover their cost could now embark on the process.
“ I know that consumers will be affected with regards to how they can  possibly build  out distribution assets  and how  they can get compensated.
“So members of the  public  must therefore know that weather it is tariff setting, eligible  customer declaration,  NERC first did consultation before it made decision so that all the  interest  are carried on as much as  possible.”
Fashola , who commended NERC for  turning out the regulation, said that the much awaited regulation by Nigerians was  the regulation on licensing  meter service providers.
“ While this is the much welcome regulation, I think the regulation that everybody is waiting for is the regulation of meters.
“I hope that in a couple of days,  you probably will be able to share that with us; members of the public are waiting.
“It will  be a good thing, if we can complete  the metering regulation  before this month is over and see  how quickly it can stimulate   the licensing of meter suppliers and ultimately to consumers .”
He said  that  the  provision of the regulations and other giant strides being recorded in the sector were  part of the implementation of the  power sector recovery plan.
Earlier, the Vice –Chairman of NERC, Mr Sanusi Garba, said it had carried out consultations  in the six geo-political zones of the country to get  inputs of stakeholders and Nigerians.
He also said that the regulation  had inputs from the technical support from USAID before approving the regulation.
The 33-page customer eligibility  regulations  document  is designed to facilitate competition in the supply of electricity, promote rapid expansion of generation capacity and open up a window for improvement in quality of supply.
It also has the objective to encourage the opening up of third party access to transmission and distribution  infrastructure, among other objectives.