In a bid to bolster the domestic power supply, the Federal Government of Nigeria has taken steps to reduce electricity sales to neighboring countries, including the Niger Republic, Togo, and Benin Republic.
The Nigerian Electricity Regulatory Commission (NERC) issued an order to the System Operator (SO), a department within the Transmission Company of Nigeria (TCN), instructing them to limit power supply to these three neighboring countries to six percent of total grid electricity.
Signed jointly by the Chairman of NERC, Sanusi Garba, and Vice Chairman, Musiliu Oseni, the directive, titled ‘Interim Order on Transmission System Dispatch Operations, Cross-border Supply, and Related Matters,’ was published on Friday, with an effective date of May 1, 2024, and a duration of six months, subject to review.
According to the order, the decision aims to address sub-optimal grid dispatch practices that have hindered Distribution Companies (DisCos) from meeting their service tariff commitments to end-users.
NERC expressed concerns over existing international and bilateral contracts with Generation Companies (GenCos), noting that they often fail to meet industry standards. The commission highlighted instances where off-takers exceeded their contracted levels during peak operations without facing penalties.
As an interim measure, NERC emphasized the need to enhance transparency and fairness in grid operations. The order mandates the development of a pro-rata load-shedding scheme to ensure equitable load allocation to all off-takers during generation drops or grid imbalances.
Furthermore, the system operator is directed to log and publish hourly readings, enforcing penalties for violations of grid instructions and contracted nominations. The maximum load allocation to international off-takers in each trading hour is capped at six percent of the total available grid generation.
Additionally, the order requires 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. This initiative aims to provide real-time visibility of aggregate offtake by grid customers.
The Federal Government stressed the importance of these measures in ensuring a more reliable and efficient domestic power supply system. It also underlined the need for prompt action to implement the directives outlined in the order.