Nigeria to reduce electricity supply to Niger Republic, Benin, Togo

Nigeria to reduce electricity supply to Niger Republic, Benin, Togo

Not more than six per cent of total electricity from the national grid will be supplied to cross-border customers in Benin Republic, Niger and Togo.

The Nigerian Electricity Regulatory Commission (NERC) gave this directive to the System Operator (SO), a department in the Transmission Company of Nigeria (TCN).

NERC said this was done in a bid to increase power availability to Nigerians.

This is coming as the Minister of Power, Adebayo Adelabu, has reportedly disclosed that the Federal Government and the Nigerian Sovereign Investment Authority (NSIA) would make capital injections of N750 billion and N250 billion annual debt financing to bridge the huge electricity metering gap in the country that currently stands at about seven million, according to a ThisDay report.

These details are contained in a document tagged: ‘Interim Order on Transmission System Dispatch Operations, Cross-border Supply and Related Matters’.

The power sector regulator stated that the directive would last for six months in the first instance before a review.

Nigeria supplies a portion of the electricity it generates to some of its neighbours such as the Benin Republic, Niger Republic and Togo.

NERC’s order, dated April 29, 2024, and which became effective from May 1, 2024, was signed by the commission’s Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni.

The electricity sector regulator stressed that following the implementation of the April 2024 supplementary order, the commission had observed sub-optimal grid dispatch operation practices.

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It argued that this had compromised the Distribution Companies’ (Discos) ability to deliver on its Service Based Tariff (SBT) committed service levels to end-use customers with a significant impact on market revenues.

NERC said the system operator’s sole reliance on limiting Discos’ load off-take/allocation in managing recurring grid imbalances while prioritising international off-takers and Eligible Customers (ECs) is neither efficient nor equitable.

The practice so far adopted by the operator in managing generation availability, it said, had caused significant hardship to Discos’ customers, comprising industrial, commercial, and residential, especially during peak demands while prioritising delivery to other bilateral contracts, including export to international customers.

“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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“The system operator shall implement a framework to log and publish hourly readings and enforce necessary sanctions for violation of grid instructions and contracted nominations by off-takers in line with the grid code and market,” it stated.

Among others, it further directed that the system operator shall publish and notify all market participants and the commission of the previous day’s hourly log readings of off-take by market participants and the market settlements report by 12:00 noon of the next day.

“The system operator shall ensure that the maximum load allocation to international off-takers in each trading hour shall not be more than six per cent of the total available grid generation.

“The aggregate capacity that can be nominated by a generating plant to service international off-takers shall not be more than 10 per cent of its available generation capacity unless in exceptional circumstances a derogation is granted by the commission.

“The system operator shall henceforth cease to recognise any capacity addition in bilateral transactions between a generator and an off-taker without the express approval of the commission,” it added.

It urged the system operator and TCN to immediately initiate and install integrated Internet of Things (IoT) meters at all off-take and delivery points of eligible customers, bilateral supplies, cross-border trades, and outgoing 33kV feeders of the Discos to provide real-time visibility of aggregate off-take by grid customers.

“The installation of and streaming of data from the IOT meters should be completed within three months from the date of this order,” it added.

Nigeria to reduce electricity supply to Niger Republic, Benin, Togo