egopersonified:
housing estates would be able to get this easily

True. Housing estates would easily take advantage of this development.

masterblaster:
Genco in Nigeria will be free to generate and sell electricity directly to end users across the country with a very little interference from the 11 electricity distribution companies (Discos) , the Nigerian Electricity Regulatory Commission (NERC) has declared.

The declaration, which was signed by the Minister of Power, Works and Housing, Babatunde Fashola was made known to newsmen in Abuja on Friday.

Tagged as the ‘eligible customers’ regime, the declaration, NERC said in a statement on Friday in Abuja, was signed off by the Minister of Power, Works and Housing, Mr. Babatunde Fashola.

The statement announcing this was signed by NERC’s Head of Public Affairs, Dr. Usman Arabi. It said its declaration was legally backed by the provisions of Section 27 of the Electric Power Sector Reform Act 2005 (EPSRA), adding that it represented a major policy directive which now grants electricity consumers under this category the right to buy power directly from Gencos almost unhindered.

NERC stated that under the regime, Fashola signed off four categories of eligible customers to become operative in the Nigerian Electricity Supply Industry (NESI).

The first category of eligible customers, it noted, comprises a group of end-users registered with the NERC and whose consumption is not less than two megawatts (MW) and connected to a metered 11kV or 33kV delivery point on the distribution network. This group would however be subjected to a distribution use of system agreement for the delivery of electrical energy.

More from source:http://naijaentrepreneur.com/2017/05/20/nerc-grants-gencos-right-to-sell-electricity-directly-to-consumers/

A waste of time. Will this enhance electricity generation and distribution? Doubtful! Good policy but implementation is another story.

Nonsense.....in plain terms, people wey no be heavy electricity users no go fit buy directly and might not even have power at all

Howmon:
Nonsense, why not give individuals right to supply power to communities. I for one would like to power akowonjo and Santos layout all by myself and they can pay me for uninterrupted power on a pay as you go basis, not this nonsense they are delivering unmetered.

But that's exactly what this new rule will enable, before now you will need the approval of the Discos (distribution companies) to distribute, but now you can generate the power(that makes you a GENCO -generation company) and distribute it without the discos.To operate as a GENCO, you will need the approval of the NERC. I believe this is a good development, this will break the Monopoly/Oligopoly hold on the market bring about more competition and probably the needed efficiency in the services to consumers.

tivta:
They should make it so that streets can buy it. Not just companies or estates. Dam you.

And what's stopping the residents of a street from forming a company to buy on their behalf again? So many ignorant whiners on Nairaland!

Hmmm..

Buking1:
Very soon u will pass the back of your street only to discover that the power u hv not had in 9 month has been bought by your big olowo neighbour at the next street

Lol..

On the bright side the scam distribution companies that don't want to supply power will be forced to sit up. Cos if they don't neighborhoods fit band together and form a single customer and buy power. Or state governments will buy directly from the gencos and share themselves.

A very good move I must say.
Industrial customers,estates and "smart" communities will benefit a great deal from this development.

Some Industrial customers consumes up to that requisite amount of energy,some big estates likewise.

"Smart" communities: there are communities here that are bulk billed by the disco we have here, i.e if any community can be smart enough to do a load assessment of their area and realize that their consumption is that high,all they need do is apply for this offer.

And the beauty of this idea is that,you can't owe the Genco like it's easy to owe disco, it will be easy to disconnect you from supply once you default in payment.
Thumbs up baba Fash!

More so, Fashola just put the discos on their toes, the competition will benefit Nigerians because Discos will be forced to sit up now,their major revenues are from Maximum demand customers that now have an alternative (a better one in times of service delivery perhaps). It's a good move #IMO

Nairalanders if you don't understand an article please just ask instead of jumping to conclusions and exhibiting your ignorance. Please take this piece of advice it will help you in the real world take it and apply it ok. Thanks for all the users that broke this down in layman's terms. Thanks Fashola, may God keep giving our leaders wisdom to make laws that will better our lives.

So much critisms but hardly any alternate solution provided. I've a feeling nothing Fashola do will be positively received by Nigerians. Since I've no idea what the best solution is i won't waste my breath. I just want that every home is metered.

It's a welcome development, it will make the discos more serious in service delivery. What it also means is that it will encourage embedded generation. If a company generates power for its usage in the factory, the excess is sold to discos to give the local community within the company, with this new development, the company can sell direct to the community. Moreover it will encourage power plants in communities and estates. Point of correction it will be difficult for gencos to sell direct to a far distanced customers because of transmission, unless they run a new line because TCN Owns transmission line. Another advantage is that the discos won't reject loads again, if they do so communities and companies now have alternative. There are still some legal tussles ahead because discos won't accept it, the license was given to them to cover a particular area and the new development will make them have dwindling revenue.

davodyguy:
...

Question is, who goes round to ensure unqualified candidates are not paying bribes to go straight to GenCos?

Spot on. The most enlightened comment so far.

And as for the Transmission lines owned by TCN in alternative of running new lines by Gencos. There would be no need for that as it has been taken care in the complete documents. Gencos can take lease from TCN using substations/feeders by making little adjustment and isolations to supply intended customers. A brilliant idea in my opinion but the challenge is implementation








quote author=verocharles post=56697360]It's a welcome development, it will make the discos more serious in service delivery. What it also means is that it will encourage embedded generation. If a company generates power for its usage in the factory, the excess is sold to discos to give the local community within the company, with this new development, the company can sell direct to the community. Moreover it will encourage power plants in communities and estates. Point of correction it will be difficult for gencos to sell direct to a far distanced customers because of transmission, unless they run a new line because TCN Owns transmission line. Another advantage is that the discos won't reject loads again, if they do so communities and companies now have alternative. There are still some legal tussles ahead because discos won't accept it, the license was given to them to cover a particular area and the new development will make them have dwindling revenue.[/quote]

onosprince:
Minister of darkness, When are we going to get a stable power supply?

Where you do not understand the problems then the solutions would be misunderstood

Kiakia:
A waste of time. Will this enhance electricity generation and distribution? Doubtful! Good policy but implementation is another story.

It will make the GENCOs believe there would be profitability therefore encouraging them to expand their generating capacity

verocharles:
It's a welcome development, it will make the discos more serious in service delivery. What it also means is that it will encourage embedded generation. If a company generates power for its usage in the factory, the excess is sold to discos to give the local community within the company, with this new development, the company can sell direct to the community. Moreover it will encourage power plants in communities and estates. Point of correction it will be difficult for gencos to sell direct to a far distanced customers because of transmission, unless they run a new line because TCN Owns transmission line. Another advantage is that the discos won't reject loads again, if they do so communities and companies now have alternative. There are still some legal tussles ahead because discos won't accept it, the license was given to them to cover a particular area and the new development will make them have dwindling revenue.

Captive power generation doesn't fall under GENCOs. A factory with excess power cannot sell to the community. They do not have that licence.

This is the best piece of news in a long time.The discos,I have on good authority refuse to get power generated at times.
One yoke on the neck of the power sector has been lifted.The next chain to be broken is the total privatization of the transmission phase.

Buking1:
Very soon u will pass the back of your street only to discover that the power u hv not had in 9 month has been bought by your big olowo neighbour at the next street

Don't misinterpret and misinform people .Eligible Customers Regime z not for big olowos; Its for small n medium industrial consumers dat cannot generate power for their own use (captive generation).
Do u know what is 2mega watts? No big olowo can consume 2MW which is the minimum demand for d eligible consumers regime qualification.

No housing estate dat I know in Nigeria can consume 2MW. Some federal universities with all their facilities cannot even consume 2MW.

Why can't the Gencos sell directly to everyone without
passing thru the discos with their cut throat prices on estimations yet no power.

They should make it so that streets can buy it. Not just
companies or estates according to the new clause.

These Discos are the cabals especially EEDC but gradually they will loose their grip.

Anyway this is one little good move.

I'm happy with this news

Chuksgeo:
Why can't the Gencos sell directly to everyone without
passing thru the discos with their cut throat prices on estimations yet no power.

They should make it so that streets can buy it. Not just
companies or estates according to the new clause.

These Discos are the cabals especially EEDC but gradually they will loose their grip.

Anyway this is one little good move.

If it was pure water then that would have been possible but power generation is not pure water. It is reliant on a transmission infrastructure which itself is under the control of another entity.

Chikpat:

Do u know what is 2mega watts? No big olowo can consume 2MW which is the minimum demand for d eligible consumers regime qualification.

Who enforces this?

barrysome001:
A very good move I must say.
Industrial customers,estates and "smart" communities will benefit a great deal from this development.

Some Industrial customers consumes up to that requisite amount of energy,some big estates likewise.

"Smart" communities: there are communities here that are bulk billed by the disco we have here, i.e if any community can be smart enough to do a load assessment of their area and realize that their consumption is that high,all they need do is apply for this offer.

And the beauty of this idea is that,you can't owe the Genco like it's easy to owe disco, it will be easy to disconnect you from supply once you default in payment.
Thumbs up baba Fash!

More so, Fashola just put the discos on their toes, the competition will benefit Nigerians because Discos will be forced to sit up now,their major revenues are from Maximum demand customers that now have an alternative (a better one in times of service delivery perhaps). It's a good move #IMO

Very very few people will benefit from this because of the distance of gencos to them. The current distribution lines are owned by DISCOs.

Chikpat:



Don't misinterpret and misinform people .Eligible Customers Regime z not for big olowos; Its for small n medium industrial consumers dat cannot generate power for their own use (captive generation).
Do u know what is 2mega watts? No big olowo can consume 2MW which is the minimum demand for d eligible consumers regime qualification.

No housing estate dat I know in Nigeria can consume 2MW. Some federal universities with all their facilities cannot even consume 2MW.

You are the only that understands the subject matter here.. Let's talk privately. I have sent you a pm

anyaekekehinde:

You are the only that understands the subject matter here.. Let's talk privately. I have sent you a pm

OK bro

Not quite sure how this helps us! 2MW is 2,000,000 watts. Not that many industries use that much. Maybe refineries, aluminum smelter companies etc. Doubt even Eko hotel or MMIA comes anywhere close to that!

Good for those near Gencos.
They ll have take light difectly from TCN I guess