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Home Business News Business

NERC says DisCos will pay capacity charge for rejecting allocated load

William Ukpe by William Ukpe
February 19, 2021
in Business
GencosArnergy secures $9 million from investors, Electricity poles, Transmission Company of Nigeria, TCN to ban Ikeja Electric Eko Discos and Enugu Discos, Discos, power supply in Nigeria, Association of Nigerian Electricity Distributors,ANED, PwC proposes possible solutions to the biggest problem facing Nigeria’s electricity sector, GenCos to shut down over NBET's administrative charge  , DisCos fail to distribute 8,848.24 megawatts of electricity - TCN , Crisis rocks SSAEAC as association leaders accuse each other of sabotaging power grid, Power: No solutions yet   

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The Nigerian Electricity Regulatory Commission (NERC) in a bid to fix load rejection issues between the Electricity Distribution Companies (DisCos) and the Transmission Company of Nigeria (TCN) says both sides would pay charges for any faults caused during load rejection.

The NERC disclosed this in its Guidelines for Economic Merit Order Dispatch of Generation Capacity and Related Matters 2020 on Thursday, signed jointly by NERC’s Chairman, Mr Sanusi Garba and Mr Dafe Akpeneye, Commissioner, Legal, Licensing and Compliance.

The document stated that DisCos would pay for capacity charge for rejecting load allocated to them due to challenges on their networks, while if the Transmission Company of Nigeria (TCN) was unable to deliver a DisCo’s load allocation, the TCN would also pay for the capacity charge.

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READ: TCN, NNPC partner to boost gas availability, increase power supply

The document read in part:

“Section 10(c) of the Order states that “the Commission shall hold the TCN responsible for deviations from the economic merit dispatch order that adversely impact the base weighted average cost of wholesale of energy.

”Section 11 of the Order further directs that “Nigerian Bulk Electricity Trading Company shall hereafter invoice for capacity charge and energy to DisCos based on their load allocation and metered energy respectively.

”Additionally, Section 12 of the Order concludes that “where it is established that TCN is unable to deliver a DisCo’s load allocation, TCN shall be liable to pay for the associated capacity charge.

“Where a DisCo fails to take its entire load allocation due to constraints in its network, the DisCo shall be liable to pay the capacity charge as allocated in its Vesting Contract.”

READ: Nigeria secures $210 million facility to boost power infrastructure 

What you should know

  • Recall Nairametrics reported that only 62.63% of electric customers in Nigeria were under the estimated billing package as at September 2020.

Related

Tags: Electricity Distribution Companies (DisCos)Load rejectionNigerian Electricity Regulatory Commission (NERC)Transmission Company of Nigeria (TCN)

Comments 2

  1. Uche Godson Okezueh says:
    February 19, 2021 at 1:58 pm

    Correct. This is a step in the right direction.

    Reply
  2. Igo pere says:
    February 21, 2021 at 3:28 pm

    Let ZNERC properly checkmate the distribution companies, especially OH distribution company. It is because in Bayelsa State, power supply is not up to 8hours a day and not up to 10 days in a month and yet tariff is high. Again,meters are not available. If you come across any meter in their office in Yenagoa, it’s sold at an exobitant price. NERC should come to our aid Bayelsa State.

    Reply

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