A Review of the NERC Eligible Customer Regulations 2024

The Nigerian Electricity Regulatory Commission (NERC) has been actively promoting competition within the Nigerian Electricity Supply Industry (NESI). Over the years, NERC has developed regulatory initiatives in alignment with the Electric Power Sector Reform Act 2005 and the Minister of Power’s declaration.

One significant initiative is the Eligible Customer regime, introduced via the Eligible Customer Regulations 2017. Under this arrangement, eligible customers have the freedom to directly choose and contract with electricity suppliers beyond the traditional electricity distribution companies (DisCos).

In response to current market dynamics and the need to align with the extant Electricity Act 2023, NERC has recently issued the Eligible Customer Regulations 2024 (the new Regulations). Let’s explore the key provisions of these regulations and compare them to the provisions of the 2017 regulations.

Some Provisions of the New Regulations
Three-Stage Application Process: The new regulations outline a streamlined three-stage application process for eligible customers seeking alternative electricity suppliers.
Competition Transition Charge (CTC): DisCos now have a detailed arrangement to earn CTC due to revenue loss resulting from eligible customers receiving supply from other licensees.

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