The federal government has instructed system operators in Nigeria’s power industry to restrict international electricity sales to a maximum of 6 per cent of total available grid generation per hour. This directive, issued by the Nigerian Electricity Regulatory Commission (NERC), aims to address inefficiencies and inequities in prioritising international customers over domestic distribution companies (Discos) during grid imbalances.
In a recent order, NERC mandated electricity generation companies to allocate no more than 10 per cent of their generation capacity to international off-takers over the next six months. The System Operator is tasked with ensuring that international off-takers receive a maximum of 6 per cent of the total available grid generation in each trading hour.
The order also requires system operators and the Transmission Company of Nigeria (TCN) to install IoT meters at all off-take and delivery points to provide real-time data on supply to offtakers. Additionally, the system operator must publish hourly readings of adherence to grid instructions to prevent violations of offtake contracts and ensure transparency.
The federal government observed that electricity generation companies tend to prioritise international customers during periods of low grid availability, leading to irregular supply to domestic Discos, especially during high-demand times. This practice has caused hardships for Nigerian consumers, prompting the government to intervene.
By prioritising local customers, including industrial and residential consumers, the government aims to ensure consistent electricity supply, particularly following the recent tariff hike for Band A customers. The directive aims to uphold the set hours of electricity supply to different categories of local customers.
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