The Nigerian Electricity Regulatory Commission has instructed the System Operator, a department in the Transmission Company of Nigeria, to restrict power supply to cross-border customers in Benin Republic, Niger, and Togo.
The order, detailed in a document named “Interim Order on Transmission System Dispatch Operations, Cross-border Supply, and Related Matters,” will be active for six months initially and may be reviewed.
Currently, Nigeria provides electricity to nearby countries, including Benin Republic, Niger Republic, and Togo.
The directive issued by NERC on May 3rd, 2024 and effective from May 1, 2024, was co-signed by the commission’s Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni.
According to the document, Nigeria’s neighbors must not receive more than six per cent of the total grid electricity at any given time.
The electricity sector regulator is worried about inefficient grid dispatch practices affecting Distribution Companies' ability to meet their Service Tariff commitments.
“Prioritizing international off-takers and Eligible Customers over limiting Discos’ load off-take has not been effective or fair,” the regulator expressed.
NERC highlighted that the current international and bilateral contracts with Generation Companies do not meet industry standards.
The regulator stated that many off-takers contracted by Gencos take advantage of this prioritization, exceeding their contracted levels during peak periods without penalties.
As a temporary measure, NERC aims to assist the system operator and TCN in implementing Standard Operating Procedures to improve transparency and fairness in grid operations.
As stated in the NERC document, the order also requires the system operator to set interim limits on capacities provided to international customers for the next six months, aiming to minimize the impact on domestic supply obligations by Gencos.
The document mentioned that the system operator must create and present a proportional load-shedding plan to ensure fair load allocation to all off-takers (Discos, international customers, and eligible customers) during generation drops or grid imbalances.
“The system operator will record and publish hourly readings, enforcing penalties for violations of grid instructions and contracted nominations. The maximum load allocated to international off-takers in each trading hour must not exceed six per cent of the total available grid generation.”
Furthermore, Bilateral transactions between generators and off-takers require explicit approval from the commission.
“The system operator and TCN must install integrated Internet of Things meters at off-take and delivery points to provide real-time visibility of total power uptake by grid customers.”
In addition, TCN announced the initiation of installation of two 132kV transmission towers at the Amukpe substation and restoration work on the Benin-Delta and Delta-Oghara 132kV double circuit transmission lines from May 4 to 17, 2024. During this time, bulk power supply to Benin Disco through specific feeders will be temporarily interrupted.
Some of the document said, “The commission hereby orders as follows: The system operator must create and present to the commission for approval within seven days from the issuance of this order a proportional load-shedding plan that ensures fair adjustment to load allocation to all off-takers — Discos, international customers, and eligible customers — in the event of a decrease in generation and other under-frequency related grid imbalances necessitating critical grid management.
“The system operator must establish a system to record and make public hourly readings and enforce necessary penalties for breaking grid instructions and contracted nominations by off-takers in accordance with the grid code and market.
“The total capacity that can be nominated by a generating plant to serve international off-takers should not exceed 10 per cent of its available generation capacity unless in exceptional circumstances a derogation is granted by the commission.“The system operator will no longer acknowledge any capacity increase in bilateral transactions between a generator and an off-taker without the explicit approval of the commission,” it added.
It encouraged “the system operator and TCN to immediately start 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 offtake 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.”
