The Competition Transition Charge (CTC) is a new rule to make prospective Eligible Customers (EC) and other consumer class, compensate the 11 electricity Distribution Companies (DisCos) for leaving their networks to buy power directly from Generation Companies (GenCos). Daily Trust analyses this rule as contained in Section 28 of the Electric Power Sector Reform Act (EPSRA) 2005 and enforceable by the Nigerian Electricity Regulatory Commission (NERC).

NERC on June 14, 2019 notified the public of a 21-day period in which it is soliciting contributions to a consultation paper on the CTC before the final rule is made. This period will elapse on Saturday July 6, 2019.

The commission said the CTC shall enable the DisCos recover permitted revenue and return on invested assets arising from the exit of ECs from their network. ADVERTISEMENT The Eligible Customer Regulation To ensure improved and competitive electricity supply, the former Minister of Power, Works and Housing, Mr Babatunde Fashola, empowered by the EPSRA, declared the Eligible Customer Policy in May 2017. Fashola directed NERC to create the regulation that will enable electricity users who are not satisfied with the services of the DisCos to opt to buy power directly from the GenCos and have the energy transported to them by the Transmission Company of Nigeria (TCN).

By November 2017, NERC unveiled the Eligible Customer Regulation, opening the door for heavy industries, especially members of the Manufacturers Association of Nigeria (MAN), to connect to GenCos through TCN. The regulation permits such bulk electricity customer to pay Transmission Use of System (TUOS) to TCN for using its energy wheeling facility to get the power to its facility. If, however, the Eligible Customer is using the DisCos line to deliver power directly to its facility, it will pay the DisCos the Distribution Use of System (DUOS) fee. In August 2018, Mainstream Energy Solutions Ltd (MESL), operator of Kainji and Jebba hydropower GenCos announced that at least six of such companies (ECs) have been connected and are getting power directly to their facilities.

Many stakeholders including MAN, and operators of some GenCos have complained that other than the regulation, NERC had not provided the rules of engagement to enable more customers to disconnect from DisCos’ networks and get their power directly from GenCos. NERC then published a draft consultation paper on the Competition Transition Charges (CTC) which it said would be in place before the regulation becomes completely implementable. Upon expiry of the period for the public to submit contributions on Saturday, NERC will also hold stakeholders consultation workshops in each of the 11 DisCos to review written submissions and receive further comments from the public.


https://www.nigeriaelectricityhub.com/2019/07/10/ctc-power-consumers-to-pay-for-leaving-discos-networks/

That is the way to go. if major industries can buy power directly from GenCos, cases of power rejection by Discos will likely reduce since the little coming to them from GenCos can be effectively distributed and managed accordingly.

NERC always make laws that protect discos. They never talk about what benefits the customers. Uptil now,estimated billing is still an issue. Bedc controlling Edo,delta,ondo and Ekiti has delibrately refused to supply prepaid metres,no metre asset provider has undertaken the task and yet NERC pretends nothing is wrong. When u keep pushing the people to the wall,one day,they turn back and fight u.

oz4real83:
NERC always make laws that protect discos. They never talk about what benefits the customers. Uptil now,estimated billing is still an issue. Bedc controlling Edo,delta,ondo and Ekiti has delibrately refused to supply prepaid metres,no metre asset provider has undertaken the task and yet NERC pretends nothing is wrong. When u keep pushing the people to the wall,one day,they turn back and fight u.

I totally agree with your point