- NERC mandates capping power supply to neighboring nations at 6% of total grid electricity.
- Measures prescribed to enhance grid operations transparency and fairness.
- Install integrated IoT meters to provide real-time visibility of electricity distribution.
In a decisive move to bolster Nigeria’s power availability, the Nigerian Electricity Regulatory Commission (NERC) has mandated the System Operator (SO), a division within the Transmission Company of Nigeria (TCN), to enforce restrictions on the power supply to neighbouring nations such as Benin Republic, Niger, and Togo.
This directive, outlined in the NERC document titled ‘Interim Order on Transmission System Dispatch Operations, Cross-border Supply and Related Matters’, will be effective for six months, subject to review thereafter. Signed by NERC’s Chairman Sanusi Garba and Vice Chairman Musiliu Oseni, the order, dated April 29, 2024, took effect from May 1, 2024.
The directive’s crux is capping power delivery to neighbouring countries at six per cent of the total grid electricity, ensuring a significant portion remains within Nigeria to address domestic demand. NERC emphasized the necessity of this action, citing suboptimal grid dispatch practices that have hindered Distribution Companies (Discos) ability to meet committed service levels under the Service Based Tariff (SBT) framework, thereby impacting market revenues.
Furthermore, the commission criticized the reliance on limiting Discos’ load off-take to manage grid imbalances, noting its adverse effects on domestic consumers during peak demand periods. It highlighted discrepancies in international and bilateral contracts with Generation Companies (Gencos), underscoring the need for stricter adherence to contractual terms and penalties for violations.
To address these issues, the NERC prescribed several measures to guide system operators and TCN in enhancing grid operations’ transparency and fairness. These measures include developing a pro-rata load-shedding scheme ensuring equitable load allocation to all off-takers, implementing frameworks to enforce grid instructions compliance, and publishing hourly off-take readings and market settlements reports.
Moreover, the directive mandates the imposition of interim caps on capacities supplied to international customers. It restricts the maximum load allocation to such off-takers to six per cent of the total available grid generation. Gencos are also prohibited from recognizing capacity additions in bilateral transactions without explicit approval from NERC.
In parallel, NERC instructed the immediate installation of integrated Internet of Things (IoT) meters at off-take and delivery points to provide real-time visibility of aggregate offtake by grid customers. This initiative aims to enhance the monitoring and management of electricity distribution across various sectors.
In conclusion, NERC’s directive marks a pivotal step towards improving Nigeria’s electricity supply by prioritizing domestic demand and enforcing stringent measures to optimize grid operations. By fostering transparency, fairness, and efficiency in the power sector, the commission aims to ensure reliable electricity access for all Nigerians while addressing longstanding challenges in the industry.