Emmanuel OchayiIn a bid to address the persistent power failure across Nigeria, the Nigerian Electricity Regulatory Commission (NERC) has expressed deep concern over the continuous electricity load rejection by power distribution companies (DisCos).
Despite widespread blackouts affecting numerous regions in the country, the NERC has threatened to take strict regulatory actions against DisCos failing to meet essential performance targets for electricity offtake.
A representative from the NERC said: “The disparity between available power capacity and customer demand is alarmingly large. It’s expected that DisCos offtake their Partially Contracted Capacity (PCC) consistently, yet many fail to do so due to technical limitations and commercial reasons, leading to load rejection.”
The regulatory body highlighted that it had introduced the Partial Activation of Contract regime to define target energy volumes for DisCos, making it obligatory for them to pay for available power capacity regardless of their offtake, aligning with international best practices.
The NERC pointed out, “Persistent load non-offtake beyond certain thresholds could trigger regulatory actions against the management of non-compliant DisCos.”
Additionally, it outlined the financial repercussions faced by DisCos for failing to offtake their full PCC, further impacting the cost and availability of electricity.
Furthermore, the Commission disclosed that despite a marginal increase in average energy offtake by DisCos in the last quarter of 2023, the majority of them failed to meet their available PCC. Only a few, notably Eko and Ibadan DisCos, surpassed their offtake targets, reducing wholesale energy costs and illustrating potential benefits.
In response to this ongoing issue, power consumer groups have expressed dismay, condemning the DisCos’ load rejection amidst the widespread lack of adequate electricity supply.
Uket Obonga, the National Secretary of the Nigeria Electricity Consumer Advocacy Network, urged the NERC to enforce stringent measures to ensure compliance with electricity supply expectations.
Meanwhile, the NERC clarified that the Partial Activation of the Contract regime also entails compensations to DisCos by Generation Companies (GenCos) or the Transmission Company of Nigeria in the event of capacity shortfalls, aiming to maintain a balance in the power sector.
The NERC concluded by affirming its commitment to enforce regulatory measures against non-compliant DisCos and continuing daily monitoring and intervention to address energy offtake performance.
As the power crisis persists, stakeholders are calling for immediate and decisive action from regulatory authorities to mitigate load rejection and improve electricity supply across the nation.
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