Kano Disco raises alarm over ‘eligible customers’ policy

THE Kano Electricity Distribution Company (KEDCO) has raised the alarm over the eligible customer policy of the Nigerian Electricity Regulatory Commission (NERC) in its September 2019 Performance Investment Plan (PIP).

The plan, which was posted on the website of the commission yesterday, explained that the “eligible customer regulations will allow large (eligible) customers to purchase power directly from generating companies. Large customers are a major source of revenue for DisCos due to their ability and willingness to pay, and heavy cross subsidies between tariff classes.”

The KEDCO said although Competition Transition Charge and Distribution Use of System Charges were intended to address the financial impact of losing these customers, they have not yet been put in place.

The power firm said under the regulations, eligible customers are required to apply to NERC for eligible customer status, with their proposed supplier.

NERC, said the DisCo, has not officially granted eligible customer status to any customers yet within KEDCO’s franchise area, but eligible customers are still taking advantage of this new policy.

The plan showed that the assumption under worst case scenario is the possibility of KEDCO losing some of its prime MD customers due to the implementation of the Eligible Customers regulation.

 

Source: The Nation

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