NERC Eligible Customers Regulation 2017 and Regulations on Procedure for Electricity Tariff Reviews

Regulations specify which large electricity consumers qualify as eligible customers to buy power directly from generators, and outline procedures for reviewing electricity tariffs. They target large industrial and commercial users, generation companies, and distribution companies. This introduces competition and ensures transparent tariff adjustments.

What Is This Policy?

Regulations that define which large electricity consumers qualify as eligible customers who can purchase power directly from generators or traders (bypassing distribution companies), and the procedures that NERC follows when reviewing and adjusting electricity tariffs.

Who Does It Target?

Large industrial and commercial electricity consumers Electricity generation companies and traders Distribution companies NERC tariff and market operations teams

What Does It Aim to Achieve?

Introduce competition in electricity retail by allowing large consumers direct access to generators, and ensure that tariff adjustments are transparent, evidence-based, and follow due process.

Key Features

Eligible Customer Criteria: Minimum consumption thresholds and connection requirements for direct market access Bilateral Contracts: Framework for eligible customers to negotiate supply agreements directly with generators Wheeling Charges: Fees for using the transmission and distribution network to deliver directly purchased power Multi-Year Tariff Order: Methodology for setting electricity tariffs over multiple years with regular reviews Tariff Review Procedure: Steps including stakeholder consultation, data analysis, and public hearings before tariff adjustments

Current Status

Rollout Stage: Active with phased implementation of the eligible customer framework Coverage: Large consumers meeting eligibility thresholds and all tariff-setting processes Lead Agency: NERC Market Development: Progressive expansion of eligible customer access as market conditions allow

How to Access

Large consumers can apply for eligible customer status; tariff reviews follow published procedures. Apply to NERC for eligible customer determination Tariff review proposals are published for stakeholder comment before adoption

Official Resources

Website: nerc.gov.ng Contact: NERC, Abuja

Legal Framework

The NERC Eligible Customers Regulations 2017 are issued under the Electricity Act 2023 (then the EPSR Act 2005) and the NERC (Establishment) Act. They operate alongside the NERC Market Rules, the Nigerian Bulk Electricity Trading (NBET) agreements, and the Distribution Licence conditions. The Regulations align with the ECOWAS Regional Electricity Market Protocol and liberalisation standards for competitive electricity supply.