NERC ELIGIBLE CUSTOMERS REGULATIONS, 2017
Regulation · Trade
Policy date: 2017-01-01
Regulations define large electricity consumers as eligible to procure power directly from generators, bypassing distribution companies. They target industrial and commercial users, generation companies, and distribution firms. This promotes competition and improves market efficiency for reliable electricity.
NERC ELIGIBLE CUSTOMERS REGULATIONS, 2017
What Is This Policy?
Regulations that define and regulate the class of large electricity consumers who are eligible to procure electricity directly from generators and traders, bypassing the conventional distribution company supply route.
Who Does It Target?
Large industrial and commercial electricity consumers Electricity generation and trading companies Distribution companies in areas where eligible customers are located NERC as the regulatory authority
What Does It Aim to Achieve?
Enable large consumers to access cheaper, more reliable electricity by contracting directly with generators, drive competition in the electricity market, and improve overall market efficiency.
Key Features
Eligibility Criteria: Defines minimum consumption thresholds (initially 2MW and above) that qualify a consumer as an eligible customer. Direct Contracting: Permits eligible customers to negotiate and execute bilateral power purchase agreements directly with generators. Network Access: Eligible customers must pay regulated wheeling charges for use of transmission and distribution networks. Phased Market Opening: Contemplates gradual reduction of the eligibility threshold to progressively open direct access to more consumers.
Current Status
Rollout Stage: Active - NERC has approved eligible customer status for several large consumers Coverage: Nationwide electricity market Beneficiaries: Large industrial consumers; competitive electricity market Funding: Market-funded through direct bilateral contracts
How to Access
Apply to NERC for eligible customer designation Demonstrate that demand meets the minimum consumption threshold Execute a network access agreement with NBET or the distribution company Application method: Apply to NERC at https://www.nerc.gov.ng
Important Terms
Eligible customer status does not exempt from distribution network charges Bilateral contracts must be registered with NERC NERC retains the right to revoke eligible customer status for breach of conditions
Official Resources
Website: https://www.nerc.gov.ng Contact: Nigerian Electricity Regulatory Commission (NERC)
Legal Framework
The NERC Eligible Customers Regulations 2017 are issued by the Nigerian Electricity Regulatory Commission under the Electric Power Sector Reform Act 2005 (now Electricity Act 2023). They operate alongside the Nigerian Electricity Supply Industry Metering Regulations, the NERC Service Level Agreements, and the Market Rules for the NESI. The Regulations align with the ECOWAS Regional Electricity Market framework and EU electricity market liberalisation models.