Connect with us

Business

DisCos will pay capacity charge for rejecting allocated load – NERC

Published

on

NERC

In a bid to fix load rejection issues between the Electricity Distribution Companies (DisCos) and the Transmission Company of Nigeria (TCN), Nigerian Electricity Regulatory Commission (NERC) said both sides would pay charges for any faults caused during load rejection.

This was contained in a statement issued by the NERC for Economic Merit Order Dispatch of Generation Capacity and Related Matters 2020.

The statement was jointly signed by the commission’s chairman, Sanusi Garba, and Dafe Akpeneye, Commissioner, Legal, Licensing, and Compliance on Thursday, February 18.

According to the statement,  DisCos would pay for capacity charge for rejecting load allocated to them due to challenges on their networks, while if the Transmission Company of Nigeria (TCN) was unable to deliver a DisCo’s load allocation, the TCN would also pay for the capacity charge.

The statement read: “Section 10(c) of the Order states that “the commission shall hold the TCN responsible for deviations from the economic merit dispatch order that adversely impact the base weighted average cost of wholesale of energy.

”Section 11 of the Order further directs that “Nigerian Bulk Electricity Trading Company shall hereafter invoice for capacity charge and energy to DisCos based on their load allocation and metered energy respectively.

”Additionally, Section 12 of the Order concludes that “where it is established that TCN is unable to deliver a DisCo’s load allocation, TCN shall be liable to pay for the associated capacity charge.

“Where a DisCo fails to take its entire load allocation due to constraints in its network, the DisCo shall be liable to pay the capacity charge as allocated in its Vesting Contract.”

Recently, Techeconomy.ng reported that Ikeja Electric Plc and Eko Electricity Distribution Company Limited have recorded a partial system collapse that left some parts of their coverage areas in darkness for hours on Wednesday, February 17.

ALSO READ  Cybersecurity remains investment priority for companies, report finds

Ikeja Electric, in Twitter post, said: “Dear Customer, this is to inform you that we experienced a system collapse at 13:58hrs (1.58p.m) today and this affected all customers on the IE network.

“However, we are pleased to confirm that supply has been restored to Alimosho, Ogba and Alausa transmission stations at 14:47hrs (2.47p.m).”

Advertisement
2 Comments

2 Comments

  1. Pingback: DisCos will pay capacity charge for rejecting allocated load – NERC - 9jaheadies

  2. Pingback: DisCos Will Pay Capacity Charge For Rejecting Allocated Load – NERC | Techvalley

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Facebook