New NERC order will stop Discos’ rejection of electricity load – TCN

The Nigerian Electricity Regulatory Commission has introduced an order that will help stop the rejection of electricity load by power distribution companies.

Managing Director, Transmission Company of Nigeria, Usman Mohammed, disclosed this to journalists while speaking on the sidelines of an extraordinary tariff review public hearing by the TCN before NERC.

The TCN had complained that the country’s power supply situation was further worsened by the rejection of electricity allocation by Discos.

This, however, had been refuted by the power distributors.

But industry data obtained from the TCN and reported exclusively by The PUNCH on March 4, 2020, showed that Discos rejected a total of 17,657.19 megawatts of energy allocated to them by the transmission company between February 3 and February 23 this year.

Reacting to the development at the recent public hearing, Mohammed said, “On load rejection, NERC is addressing the matter. The commission has already done an order that is mandating Discos that they are going to pay for capacity and I know that this is going to address that issue.

“Very soon, you will see that this load rejection issue will become a thing of the past. The load rejection problem is actually because the Discos can drop load and increase it at will without being penalised for anything.

“But now that NERC is putting this structure to ensure that there is capacity charge for those that refuse to take the load, I think that very soon, you will see that this load rejection is going to be a thing of the past.”

Mohammed further explained that the TCN did not submit any request for extraordinary tariff, rather it requested the provision of auxiliary services.

He said, “Ancillary services are services that are supposed to be provided by the market to ensure that we have a stable grid. And one of them is what we call the secondary reserve, also known as spinning reserve.

“The secondary reserve is supposed to take care of grid stability that cannot be handled by the primary reserve. The primary reserve is the frequency control, and we fought very hard to ensure that Nigeria got it.”

Mohammed stated that the secondary reserve would support the power grid during emergencies such as the tripping of a power line or breakdown in a generation station.

“We are not requesting this for the TCN but for the industry, because whenever there is a system collapse, it does not only affect the TCN but the entire sector.

“However, the reason why we are making this request is because we are the ones operating the grid.”

The TCN boss stated further that any adjustment in tariff for auxiliary services would be paid by power consumers across the country.

He also noted that six generation companies would provide the spinning reserves including Azura Power and hydropower Plants.

 

Source: Punch

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