Nigeria’s electricity market was further deregulated Friday with a declaration by the regulator empowering power generating companies to sell electricity directly to consumers.
The declaration, which has already been signed off by Power, Works and Housing Minister Babatunde Fashola seeks to get stranded power around the country into homes and offices of large electricity consumers.
Distribution firms are likely to fight this new reform measure but the government seems on solid ground according to provisions of
Section 27 of the Electric Power Sector Reform Act 2005.
“The first category of eligible customers comprises of a group of end-users registered with the Commission whose consumption is no less than 2MWhr/h and connected to a metered 11kV or 33kV delivery point on the distribution network and subject to a distribution use of system agreement for the delivery of electrical energy.
“The next category of eligible customers are those connected to a metered 132kV or 330kV delivery point on the transmission network under a transmission use of system agreement for connection and delivery of energy.
“Other category of customers under the declaration consists of those with consumption in excess of 2MWhr/h on monthly basis and connected directly to a metered 33kV delivery point on the transmission network under a transmission use of system agreement.
“Eligible customers in this category must have entered into a bilateral agreement with the distribution licensee licensed to operate in the location, for the construction, installation and operation of a distribution system for connection to the 33kV delivery point.
“The last category are eligible customers whose minimum consumption is more than 2MWhr/h over a period of one month and directly connected to the metering facility of a generation company, and has entered into a bilateral agreement for the construction and operation of a distribution line with the distribution licensee licensed to operate in the location.
“The new policy directive is expected to bring into play new and stranded generation capacities which may be contracted between generation companies and eligible customers.