Electricity consumers have kicked as the Transmission Company of Nigeria (TCN) suspended the eligible customers’ operations.
The Nigeria Electricity Regulatory Commission (NERC) had directed the TCN to suspend eligible customer transactions.
The eligible customer policy allows the generation companies (GenCos) to sell power directly to consumers without passing through the electricity Distribution Companies (DisCos).
Owing to the commission’s directive, the TCN heeded and suspended the transaction.
According to a document that The Nation obtained the TCN on 3rd August 2021, has written to communicate the compliance to all the eligible customers.
It’s Market Operator, E.A. Eje notified the commission in a letter titled “NERC’s Directive to Suspend Eligible Customer Transactions Without the Commission’s Approval”, with reference no: TCN/MO/003/071/002/2021.
The letter reads in part: “Following a letter from the Nigerian Electricity Regulatory Commission (NERC) dated 7th July, 2021, the commission ordered the suspension of all Eligible Customers transactions without its approval.
” In a subsequent meeting with the commission on 30th of July, the commission further directed the suspension of all Eligible Customer transactions without its approval.
“In the letter, NERC directed TCN to forthwith stop all Eligible Customer transactions pending the conclusion of the review and approval of the respective applications for eligible status by the commission.
“In this regard, we write to formally notify you that the MO/TCN is abiding by this directive and will credit all affected Eligible Customers associated energy to their host DisCo, we advise that all Eligible Customers follow up their license application with the commission.”
Responding to the directive and compliance, Nigeria Consumer Protection Network, Barrister Kunle Kola Olubiyo noted the only window available for Market Competition in the Nigerian electric market for bulk users of electricity Nigeria is the Eligible Customer transactions and framework.
He cited an example, stressing that “before the coming into being of Sun flower NIPP /TCN eligible customer Framework. The bulk user in the Sun Flower /NIPP /TCN eligible customer business model was allegedly paying for darkness and poor, epileptic, and erratic power supply from the national power grid.
“Not until they decommissioned their source of power supply from the host DisCoy and migrated to the NIPP / NDPHC sourced eligible customer national power grid supply loop.
“This is the case with lots of
Industries in Nigeria who are Bulk users of electricity and that qualifies for eligible customer transactions.
“The original ideals of eligible customer transactional framework in the power sector was designed to give end-users of electricity the right to choices or options in a near 100% monopolistic Nigerian electricity market.
“The beauty of the market is in the Competition but this not the case here as there seems to be a carefully and well-orchestrated Institutionalised synergy between the Regulatory Institutions and Market Participants / Markets Operators to stifle Market Competition in ways and manners that is inimical to the collective national economic interests.” (The Nation)
