NERC Recants, Says It Didn’t Suspend Eligible Customer

The Nigerian Electricity Regulatory Commission (NERC) has denied suspending the widely applauded Eligible Customer Regulations (ECR) which facilitated direct access to power Generation Companies for electricity supplies to heavy power users.

In apparent reference to reports based on its earlier directive to the Transmission Company of Nigeria (TCN) in respect of the ECR, NERC explained that it was meant to restrain the company (TCN) “from recognising unauthorised eligible customer transactions in the market settlement statement without the prior approval of the Commission.”

According to a statement by the NERC General Manager,
Public Affairs Department,
Dr. Usman Abba Arabi, “The Commission wish to state that the Eligible Customer Regulations (“ECR”) has NOT been suspended and at no time has the Commission issued a directive for discontinuation of service to any customer.

“The ECR was developed and
approved by the Commission, pursuant to a declaration made by the Honourable Ministry of Power as provided under section 27 of the Electric Power Sector
Reform Act (“EPSRA”).

“The regulations provide for conditions for the grant of
eligibility status by the Commission. The Commission further issued the
guidelines for filing for competitive transition charge (“CTC”) to account for loss of revenue by DisCos in compliance with section 28 of the Act.

“In this regard, electricity consumers across the country that comply with the provisions of the Eligible Customer Regulations may avail themselves of the bilateral contracting opportunities presented by the intent of the provisions in the EPSRA and the ECR.”

NERC further made clarifications on its earlier directive to TCN, explaining that it was a “straightforward directive of the industry regulator restraining the TCN from recognising unauthorised eligible customer transactions in the market settlement statement without the prior approval of the Commission.

“The Commission further directed all unauthorised EC transactions to revert to
BILLING by the distribution companies (“DisCos”) operating in the franchise area
where the customers are located but without disruption in supply until the
customer is conferred with eligibility status pursuant to the requirement of the ECR.”