The Federal Government has made the decision to enhance the domestic electricity supply by reducing the export of electricity to neighboring countries such as the Niger Republic and Togo.
The Nigerian Electricity Regulatory Commission (NERC), the electricity regulator, has instructed a division within the Transmission Company of Nigeria, the System Operator (SO), to limit the electricity supply to these three neighboring nations to a maximum of six percent.
This directive, issued by NERC and dated April 29, 2024, with effect from May 1, 2024, was jointly signed by the Chairman of the commission, Sanusi Garba, and the Vice Chairman, Musiliu Oseni.
Outlined in a document titled ‘Interim Order on Transmission System Dispatch Operations, Cross-border Supply, and Related Matters,’ this directive is set to remain in force for a period of six months, subject to potential modifications.
As per the document, the electricity transmission to neighboring countries from Nigeria should not surpass six percent of the total grid electricity capacity at any given time.
NERC expressed concerns regarding suboptimal grid dispatch practices that have hindered the ability of Distribution Companies (DisCos) to fulfill their service tariff obligations to consumers.
The document highlighted the inefficiency and lack of fairness in prioritizing international off-takers and Eligible Customers over the DisCos, leading to challenges in the electricity sector.
NERC emphasized that the existing international and bilateral contracts with Generation Companies (GenCos) often do not meet industry standards, allowing some off-takers to exceed their contracted levels without facing penalties during peak operations.
This interim measure aims to guide the system operator and TCN in implementing Standard Operating Procedures to promote transparency and fairness in grid operations.
Additionally, the order mandates the system operator to impose temporary limits on the capacities supplied to international customers for the next six months, minimizing the impact on domestic supply obligations by GenCos.
Furthermore, the system operator is required to devise and present a pro-rata load-shedding plan to ensure equitable distribution of load to all off-takers (DisCos, international customers, and eligible customers) during instances of reduced generation or grid imbalances.
The commission’s order also stresses the importance of monitoring and publishing hourly readings, enforcing penalties for violations of grid instructions and contracted nominations, and restricting the maximum load allocation to international off-takers to six percent of the total available grid generation capacity in each trading hour.
In conclusion, the commission directs the system operator and TCN to promptly implement the installation of integrated Internet of Things (IoT) meters at various points to facilitate real-time monitoring of electricity consumption by grid customers, with a deadline of three months from the issuance of this order.
