GEPLAW FOCUS: ENERGY REPORT AUGUST 2020

GEPLAW FOCUS: ENERGY REPORT AUGUST 2020


A.   INDUSTRY FOCUS ANALYSIS 

(I)              AN OVERVIEW OF THE NIGERIAN ELECTRICITY REGULATORY COMMISSION (NERC) DOCUMENT NO. NERC/GL/2/2020 – GUIDELINES ON FILING APPLICATIONS FOR COMPETITION TRANSITION CHARGE BY ELECTRICITY DISTRIBUTION AND TRADING LICENSEES

 

Introduction

 

On 27 July 2020, the Nigerian Electricity Regulatory Commission (NERC) published the Guidelines on Filing Applications for Competition Transition Charge by Electricity Distribution and Trading Licensees – No. NERC/GL/2/2020 (“the Guidelines”). The main objective of the Guidelines is to provide regulatory guidance to the Distribution Companies (DisCos) and trading licensees with regard to filing applications for the collection of Competition Transition Charge (CTC). The Guidelines serve as a sequel to the NERC Consultation Paper on Competition Transition Charge release in April 2019. This report seeks to examine the provisions of the Guidelines, highlighting the key requirements and stating implications for the DisCos, where applicable.

 Background to the Guidelines 

In 2017, four (4) categories of Eligible Customers (ECs) in the Nigerian Electricity Supply Industry (NESI) were declared by the Minister of Power, Works and Housing of Nigeria, namely:

·       A group of end-users registered with the Commission whose consumption is no less than 2MWhr/h and connected to a metered 11kV or 33kV delivery point on the distribution network and subject to a distribution use of system agreement for the delivery of electrical energy;

·       End-users connected to a metered 132kV or 330kV delivery point on the transmission network under a transmission use of system agreement for connection and delivery of energy;

End-users with energy consumption in excess of 2MWhr/h on monthly basis and connected directly to a metered 33kV delivery point on the transmission network under a transmission use of system agreement. The end-users in this category must have entered into a bilateral agreement with the DisCo licensed to operate in the location, for the construction, installation and operation of a distribution system for connection to the…continue reading 




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