NERC tax power users leaving DisCos services

The Nigerian Electricity Regulatory Commission (NERC) has unveiled fees payable by large power users before they can exit the services of the 11 Distribution Companies (DisCos).

This is part of the Eligible Customer Regulation of 2017 that allows unsatisfied power users to leave the supply of DisCo and connect to power plants directly through the services of the Transmission Company of Nigeria (TCN).

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However, the NERC latest guideline issued by NERC, signed by the Chairman, Prof. James Momoh, said anyone opting out of a DisCo’s service must pay the Competition Transition Charge (CTC).

But the National Coordinator of the Transparency Awareness Group (TANGO), Mallam Ibrahim Isah, in a letter, called on the federal Government and the National Assembly to reverse this guideline as its members provided the power infrastructures to connect to dedicated transmission lines from GenCos without contribution from DisCos.

The letter said they should not be made to pay extra charges by NERC.  MAN had in 2019 asked to become ECs to evacuate the 2,000 megawatts stranded power taunted by GenCos.

“The CTC is to be paid in addition to the Transmission charges being paid to TCN who is a custodian of the 132/33kVa dedicated Transmission Lines. They excluded the major stakeholders.”