Nigeria Caps Power Sale To Togo, Benin, Niger At 6%

The Nigerian Electricity Regulatory Commission has ordered a department within the Transmission Company of Nigeria, the System Operator , to cap power supply to cross-border customers in the Benin Republic, Niger, and Togo to six per cent.NERC’s order, published on Friday, May 3rd was dated April 29, 2024, and effective from May 1, 2024, was jointly signed by the commission’s Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni.

The document stipulated 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-users.

It stated that many off-takers contracted bilaterally by Gencos exploit this prioritisation, exceeding their contracted levels during peak operations without penalties.As an interim measure, NERC said the move is aimed at guiding the system operator and TCN in implementing Standard Operating Procedures to enhance transparency and fairness in grid operations.

“The system operator will log and publish hourly readings, enforcing penalties for violations of grid instructions and contracted nominations. Maximum load allocation to international off-takers in each trading hour shall not exceed six per cent of the total available grid generation.”It added bilateral transactions between generators and off-takers require express approval from the commission.

Part of the document read, “The commission hereby orders as follows: 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.

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