Power: NERC Gives Conditions for Manufacturers’ Offtake of Idle 2,000MW

The Nigerian Electricity Regulatory Commission (NERC) has indicated it will allow manufacturers in Nigeria under the aegis of Manufacturers Association of Nigeria (MAN) to procure and off take about 2000 megawatts (MW) of idle electricity from the electricity generation companies (Gencos) in the country under the eligible customers’ regulation if they meet certain conditions.

NERC disclosed this in its first quarter 2018 evaluation report of the power market, obtained by THISDAY.

The regulator said it was making good progress with its guidance of processes to allow the manufacturers take up the 2000MW unused capacities from the Gencos, but would only sanction it when MAN withdraws its pending court action against it and other parties in protest of the 2015 tariff.

It also explained that MAN would have to agree to pay outstanding debts owed electricity distribution companies (Discos) on account of the body’s opposition to the tariff.

MAN had instituted a legal action against the regulatory commission in 2015 for reviewing electricity tariff upwards. The association had stated then that the review was inimical to their operations and would only pay the Discos the old rates for power supplied to them.

However, at the enactment of the eligible customers’ regulation which aimed to allow large power users bulk-purchase electricity directly from the Gencos, MAN indicated they would be willing to participate and take up about 2000MW of power that can be generated by the Gencos but not distributed by the Discos whose distribution networks are constrained to do.

The Discos had reportedly kicked against the manufacturers participating in the new regulation but NERC and the ministry of power have rather engaged both parties in mediatory talks on this.

Providing an update of this in the report, NERC stated: “At the instance of the Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola, a stakeholders meeting was held on 14th February 2018 to discuss how the average 2,000MW stranded generation capacity could be evacuated through Eligible Customer (EC) framework.