DECLARATION OF ELIGIBLE CUSTOMERS AND ITS IMPACT ON ELECTRCITY DISTRIBUTION COMPANIES AND THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY

Abstract

The declaration of Eligible Customers on the 15th of May, 2017 by the Minister pursuant to section 27 of the Electricity Power Supply Reform Act has brought about a class of customers who can source power directly from Generation Companies, thereby bypassing Distribution Companies in the power sector. The extent to which the policy directive and regulation on Eligible Customers impacts on Distribution Companies in particular and the Nigerian Electricity Supply Industry (NESI) in general is the focus of this paper. The paper observed that the declaration is coming at a time when the pre-conditions necessary for a fully competitive market are yet to be in place. The paper nevertheless posits that DisCos would be at the receiving end in terms of loss of revenue but some revenue will still be accruable to them through the Distribution Use of System Agreement. The paper concludes that the Eligible Customers Directive which sought to ensure the delivery of power to the large base of industrial and other maximum demand customers, though not without its shortcomings, but a step in the right direction as it would help to stimulate competition in NESI and ensure that electricity is delivered to consumers.