A Review of the Nigerian Electricity Regulatory Commission’s (Nerc’s) Eligible Customer Regulations 2024

A REVIEW OF THE NIGERIAN ELECTRICITY REGULATORY COMMISSION’S (NERC’S) ELIGIBLE CUSTOMER REGULATIONS 2024

INTRODUCTION

The dire need to ensure fair access, efficient and effective distribution of electricity is quite paramount in the electricity sector. In order to achieve this stride, the Nigerian electricity Regulatory Commission (NERC) released the Eligible Customer’s (EC) Regulations 2024, pursuant to Sections 11, 12, and 13 the Electricity Act 2023 (the Act), to establish criteria for customer eligibility, stating the categories of persons who can access certain types of services and the conditions under which such services can be accessed. Understanding these criteria is essential for both consumers and service providers for effective navigation of the landscape of established electricity provisions. The criteria for customer eligibility are outlined by NERC, these criteria serve several purposes, including ensuring the reliability and stability of the electricity grid, promoting competition and safeguarding consumer rights. This paper shall examine the intricacies involved in acquiring the status of an eligible customer as well as the rights and obligations of the EC and suppliers and other parties to the transaction.

CUSTOMER ELIGIBILITY

NERC through its guidelines have set different criteria for who constitutes an eligible customer. The regulations classify eligible customers into different classes or categories based on various factors such as consumption levels, connection types, and agreements with electricity providers.  

The NERC classified eligible customers into five classes.in the following manner:

  1. Point to Point Connection: This category typically applies to end-users with a significant level of consumption, usually not less than 6MWh/h over a 90-day period. These customers are directly connected, or will be connected, to a generation facility via a metered 33kV delivery point. Agreements with both generation and distribution licensees are necessary for energy procurement and delivery.
  2. New Connection to 33kV Network: These are unconnected end-users planning to consume at least 10MWh/h over 90 days. They must be connected to a metered 33kV delivery point on the distribution network and have agreements in place for energy delivery.
  3. Existing DisCo’s Customer Transitioning to Eligibility: These are customers are already connected to the distribution network but seeking eligibility, they typically have consumption levels similar to those in the second class. They must meet the same consumption criteria and have appropriate agreements with distribution licensees.
  4. Existing Customer Connected to Transmission Network: This category includes customers with substantial consumption levels, often not less than 20MWh/h over 90 days. They are directly connected to a metered 132kV or 330kV delivery point on the transmission network and have agreements in place for energy delivery.
  5. New Connection to Transmission Network: This applies to unconnected end-users with planned consumption levels of at least 20MWh/h over 90 days. They must be connected to a metered 132kV or 330kV delivery point on the transmission network and have relevant agreements in place.

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AUTHORS


Dr. Ngozi Chinwa Ole

Consultant (Director)

ngozi.ole@alliancelawfirm.ng


Lilian Adat

Senior Associate

lilian.adat@alliancelawfirm.ng


Ahmed Sani

Associate

ahmed.sani@alliancelawfirm.ng