In a bid to address domestic electricity supply challenges, the Federal Government of Nigeria has made the decision to reduce power supply to neighboring countries including Benin Republic, Niger, and Togo.
The Nigerian Electricity Regulatory Commission (NERC) has directed a department within the Transmission Company of Nigeria (TCN), known as the System Operator (SO), to limit power supply to the three neighboring countries to six percent.
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This directive, effective from May 1, 2024, was jointly signed by NERC Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni.
Outlined in a document titled ‘Interim Order on Transmission System Dispatch Operations, Cross-border Supply, and Related Matters,’ the directive is set to last for six months, subject to change.
NERC expressed concerns regarding sub-optimal grid dispatch practices, which have impacted the ability of Distribution Companies (DisCos) to meet their service tariff commitments to end-users. The commission highlighted the inefficiency and inequity in prioritizing international off-takers and eligible customers over domestic consumers.
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The current international and bilateral contracts with Generation Companies (GenCos) were noted to often fall short of industry standards, with many off-takers exploiting this prioritization by exceeding their contracted levels during peak operations without penalties.
As an interim measure, NERC aims to guide the system operator and TCN in implementing Standard Operating Procedures to enhance transparency and fairness in grid operations. The order includes placing interim caps on capacities supplied to international customers for the next six months to minimize the impact on domestic supply obligations by GenCos.
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Additionally, the system operator is tasked with developing and presenting a pro-rata load-shedding scheme to ensure equitable adjustment to load allocation among all off-takers. This scheme will apply to Distribution Companies, international customers, and eligible customers in the event of a drop in generation or other grid imbalances necessitating critical grid management.
Moreover, the installation of integrated Internet of Things (IoT) meters at all off-take and delivery points of eligible customers, bilateral supplies, cross-border trades, and outgoing 33kV feeders of the Discos is mandated to provide real-time visibility of aggregate off-take by grid customers.
The government’s move underscores its commitment to addressing domestic electricity supply challenges and ensuring fairness in the distribution of power resources.
