FG Threatens Ikeja Electric, IBDC, Other DisCos With Sanctions Over Electricity Load Rejection
- The Nigerian Electricity Regulatory Commission (NERC) has threatened to sanction power distribution companies
- NERC said it would apply the necessary regulatory actions against the power companies for load rejection
- It said the companies were required under the law to pay for rejected power offtake
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The federal government, via the Nigerian Electricity Regulatory Commission (NERC), has expressed displeasure over the electricity load rejection by power distribution companies in the country, causing massive blackouts.
NERC threatened to enforce the requisite regulatory actions against the DisCos for failing to meet key performance index (KPIs) for electricity offtake, saying that the disparity between available power capacity and customer demand was too significant.
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NERC regulation mandates DisCos to pay for undistributed power
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The commission revealed in its quarterly report for Q3 2023 that the partial activation contract regime, which became effective in July 2022, defines the target volume of energy to be offloaded by DisCos at any time as their Partially Contracted Power.
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Punch reports that the regulator explained that under the regime, DisCos had to take or pay obligations on the PCC; that is, they may pay for available power despite their offtakes.
Per the NERC report, the structure was consistent with international best practices for long-term power procurement and capacity payments for power availability.
It said:
“However, the commission continues to observe with concern that many Discos do not take their full PCC due to a combination of technical limitations as well as load rejection by the Discos largely due to commercial reasons, i.e., high losses in certain areas.”
According to NERC, to curtail this practice, it included load offtake as a critical metric in its KPI Order on performance monitoring framework, issued to DisCos effective October 2022.
DisCos show improved power distribution in Q3 of 2023
“The order provides that persistent load non-offtake to certain thresholds may trigger regulatory actions against the management of erring Discos.
Furthermore, the NERC report showed that in Q3 2023, the average energy offtake by DisCos at their trading points was about 3,253.83MWh by DisCos, representing an increase of +0.08% when compared to 3,251.31MWh/h offtake in Q2 2023.
“No More N59k”: NERC announces increase in prices of pre-paid metres
Legit.ng reported that The price of pre-paid power metres in the nation has increased following approval from the Nigerian Power Regulatory Commission (NERC).
This is coming after speculations of a 40% tariff hike by electricity distribution companies (DisCos). The DisCos had claimed they made over 40% losses due to escalating petrol prices, fluctuating exchange rates, and other economic conditions.
Recall that a total of 11 Nigerian electricity distribution companies have applied for the review of their electricity tariffs.
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Source: Legit.ng
