Fashola: Regulations on Eligible Customers Ready in October

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has stated that the Nigerian Electricity Regulatory Commission (NERC) would release the regulation that would define eligible customers in the power sector by next month.

Speaking yesterday in Lagos at a power roundtable organised by the Lagos Chamber of Commerce and Industry (LCCI), the minister also disclosed that the regulatory authority would also next month issue the regulation on metering to enable the distribution companies to sell bulk power in their feeders to meter service providers, who will provide meters to customers and sell the power to them.

Fashola said the new regulations were in line with the Electric Power Sector Reform Act of 2005, which he described as one of the best piece of legislations that has ever come out from the National Assembly.

The minister further clarified that there is no exclusivity in any Disco or Genco, stressing that NERC is empowered by law to license a new Disco within an existing Disco, provided the new license would not diminish the commercial viability of the original holder of the license.

He noted that the primary business of the Discos is to sell power and not to provide meters.

“Outsourcing is underway and that is why I said that we must read the law because contrary to the impression that a lot of people have, there is no exclusivity in any Disco or Genco. The law says that unless exclusivity is actually prescribed in your license, there is no such thing. So, we can license another Genco next year, subject to terms that does not reduce or diminish their commercial viability. We can license within Eko Disco, another Disco, but the industry is a regulated industry. Those regulations are made by NERC,” Fashola explained.

The minister stated that NERC is currently going round the country to engage stakeholders on new regulations on metering.

According to him, the law allows NERC to issue licenses for ancillary services, adding that metering is one of such services.

“But there must be a way to ensure that the original license holder’s business is not destroyed because you create another business. So, those regulations will be issued in October,” Fashola said.

“So, the regulations that are coming next month are for meter service providers. The Disco can now say that ‘look at Victoria Island Feeder; I don’t want to retail that area again’. Then we can license a meter service provider, who can go to the Eko Disco who will sell him Victoria Island Feeder and say ‘just pay me for the bulk power that goes to the VI Feeder and go and meter customers by yourself and keep the money.’ That is going to happen,” Fashola added.

The minister also stated that the regulations for the eligible customers would also be ready by next month.