NERC Limits Electricity Export to Benin, Niger, and Togo to Prioritize Domestic Supply

In an effort to enhance electricity provision to domestic consumers, the Nigerian Electricity Regulatory Commission (NERC) has issued an order directing the System Operator (SO) to limit power supply to international customers, including neighboring Benin Republic, Niger, and Togo.

Effective from May 1, 2024, the six-month interim order, titled ‘Interim Order on Transmission System Dispatch Operations, Cross-border Supply and Related Matters,’ aims to address sub-optimal grid dispatch operations and ensure fair distribution of electricity.

Signed jointly by NERC’s chairman, Sanusi Garba, and vice chairman, Musiliu Oseni, the directive restricts power delivery to Nigeria’s neighbors to not exceed six percent of total grid electricity at any given time.

NERC highlighted concerns over the impact of prioritizing international off-takers and Eligible Customers (ECs) on Distribution Companies’ (DisCos) ability to meet Service Based Tariff (SBT) commitments to end-use customers.

The commission criticized the prevailing grid management practices, emphasizing their adverse effects on DisCos’ industrial, commercial, and residential customers during peak demand periods.

Moreover, NERC noted discrepancies in international and bilateral contracts with Generation Companies (Gencos), citing loose terms and lack of penalties for violating grid instructions.

To address these issues, NERC mandated the SO to implement a pro-rata load-shedding scheme and enforce sanctions for grid instruction violations. The commission also ordered the installation of integrated Internet of Things (IoT) meters for real-time monitoring of off-take by grid customers.

These measures aim to improve transparency, fairness, and efficiency in grid operations, ultimately ensuring better service delivery to all electricity consumers in Nigeria