NERC to curb international bilateral contractual breaches

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The Nation Newspaper NERC to curb international bilateral contractual breaches

Electricity Regulatory Commission has said it is renewing efforts aimed at eliminating contractual breaches within the electricity industry especially in the international and bilateral contracts.

As part of measures to curtail any exploitation, the NERC order stipulates that power delivery to Nigeria’s neighbours must not exceed six per cent of the total grid electricity at any given time. The electricity sector regulator expressed concern about sub-optimal grid dispatch practices, which have impacted the ability of Distribution Companies to meet their Service Tariff commitments to end-user customers.

According to the NERC document, the order also mandates the system operator to place interim caps on capacities supplied to international customers for the next six months, minimising the impact on domestic supply obligations by Gencos. The Order further stated the following: “ The system operator shall develop and present to the Commission for approval within seven days from the issuance of this order a pro-rata load-shedding scheme that ensures equitable adjustment to load allocation to all off-takers — Discos, international customers, and eligible customers — in the event of a drop in generation and other under-frequency related grid imbalances necessitating critical grid management.

“The system operator shall henceforth cease to recognise any capacity addition in bilateral transactions between a generator and an off-taker without the express approval of the commission,” it added.

 

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