In line with the provisions of Section 27 of the Electric Power Sector Reform Act 2005 the Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN) has approved four categories of eligible customers in the Nigerian Electricity Supply Industry (NESI) to buy power directly from the generation companies.
This approval is contained in a statement issued by the Nigeria Electricity Regulatory Commission (NERC).
The statement from the Head, Public Affairs Department of NERC, Dr. Usman Abba Arabi states: “The declaration which permits electricity customers to buy power directly from the generation companies is in line with the provisions of Section 27 of the Electric Power Sector Reform Act 2005 whereby eligible customers are permitted to buy power from a licensee other than electricity distribution companies. In exercising the power conferred on him by the said Act, the Minister of Power Works and Housing, directed the Migeria Electricity Regulatory Commission (the Commission) to permit four categories of customers to buy power directly from a licensee other than electricity distribution companies.
“The first category of eligible customers comprises of a group of end-users registered with the Commission whose consumption is no less than 2MWhr/h and connected to a metered 11kV or 33kV delivery point on the distribution network and subject to a distribution use of system agreement for the delivery of electrical energy. The next category of eligible customers are those connected to a metered 132kV or 330kV delivery point on the transmission network under a transmission use of system agreement for connection and delivery of energy.”
Further, the statement reads: “Other category of customers under the declaration consists of those with consumption in excess of 2MWhr/h on monthly basis and connected directly to a metered 33kV delivery point on the transmission network under a transmission use of system agreement. Eligible customers in this category must have entered into a bilateral agreement with the distribution licensee licensed to operate in the location, for the construction, installation and operation of a distribution system for connection to the 33kV delivery point.
“The last category is eligible customers whose minimum consumption is more than 2MWhr/h over a period of one month and directly connected to the metering facility of a generation company, and has entered into a bilateral agreement for the construction and operation of a distribution line with the distribution licensee licensed to operate in the location.
“The new policy directive is expected to bring into play new and stranded generation capacities which may be contracted between generation companies and eligible customers.”