FG Limits Electricity Supply to International Customers to 6% Amid Regulatory Overhaul
The Federal Government of Nigeria has instructed power system operators to limit the supply of electricity to international customers or off-takers to a maximum of 6% of the total available grid generation per hour.
This directive, issued by the Nigerian Electricity Regulatory Commission (NERC), aims to rectify the inefficiencies and inequalities in the current system, which prioritises international customers over domestic distribution companies (Discos) during grid imbalances.
According to the new order, electricity generation companies must allocate no more than 10% of their capacity to international off-takers over the next six months. This move is intended to ensure a fairer distribution of electricity within Nigeria and address disparities in access to power.
It stated, “The System Operator shall ensure that the maximum load allocation to international off-takers in each trading hour shall not be more than 6% of the total available grid generation.
“The aggregate capacity that can be nominated by a generating plant to service international off-takers shall not be more than 10% of its available generation capacity unless in exceptional circumstances a derogation is granted by the Commission.”
In addition, the new order mandated the system operators and the Transmission Company of Nigeria (TCN) to install IoT meters at all offtake and delivery points of Eligible Customers, bilateral supplies, cross-border trades, and outgoing 33kv feeders of the DisCos to provide real-time data on supply to offtakers.
The new order also mandates the system operator to publish hourly readings of adherence to grid instructions to check for violations of offtake contracts and also publish the previous day’s hourly log reading to market participants.
