- IBEDC is challenging Phoenix Steel Mills’ switch to eligible customer status, claiming it did not follow proper procedures.
- NERC is reviewing the dispute and will issue a ruling after hearing from both parties.
The Ibadan Electricity Distribution Company (IBEDC) is contesting Phoenix Steel Mills Limited’s switch to the eligible customer status, which allows large users to purchase power directly from generation companies instead of through distribution networks.
Earlier this year, Phoenix Steel Mills transitioned from IBEDC to purchase electricity directly from a generation company, receiving approval from the Nigerian Electricity Regulatory Commission (NERC). IBEDC has since petitioned NERC, alleging that Phoenix Steel Mills did not follow proper procedures for opting out of its distribution network.
IBEDC argues that Phoenix Steel Mills should not have been granted eligible customer status without providing adequate notice or fulfilling required processes. The company also contends that NERC made an error by approving the steel mill’s transition.
Nigerian Electricity Regulatory Commission (NERC) recently reviewed the dispute and confirmed that Phoenix Steel Mills was indeed granted eligible customer status this year. NERC’s statement on its website indicates that the two parties, along with representatives from the Transmission Company of Nigeria (TCN), appeared before a hearing panel.
During the hearing, Phoenix Steel Mills’ counsel asserted that all conditions for eligible customer status had been met. Dr. Musiliu Oseni, NERC’s Vice Chairman and Chairman of the Petition Hearing Panel, provided an opportunity for a fair hearing for all involved parties.
The outcome of this dispute could have broader implications for how eligible customer status is managed and applied, potentially affecting other large energy consumers and their interactions with distribution and generation companies. NERC has stated that it will review the submissions from the hearing and issue a ruling, which will be communicated to all parties involved in this dispute.