The Nigerian Electricity Regulatory Commission (NERC) has directed the System Operator (SO) at the Transmission Company of Nigeria (TCN) to cut back supplies to customers in Benin Republic, Niger, and Togo to boost domestic supply.
- Nigeria wants to cut back supplies to customers in Benin Republic, Niger, and Togo to boost domestic supply.
- The regulator has announced a cap of 6% on the total available grid generation for international off-takers for the next six months, starting from May 1st.
- International customers collectively owed Nigerian power companies a total of $12.02 million in unpaid debts for services provided.
In a directive recently issued, the (NERC) said the grid operator's current approach to managing supply has caused hardship for Nigerians. This is because supply under bilateral contracts, including exports to international customers, is giving precedence oversupply to domestic customers.
The regulator has announced a cap of 6% on the total available grid generation for international off-takers for the next six months, starting from May 1st.
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Nigerian power companies have agreements with neighbouring African countries like Benin Republic, Niger, and Togo to supply electricity, providing them with foreign currency to supplement revenue from below-market tariffs. However, these firms have often been delayed in settling their bills promptly.
According to a report from the last quarter of 2023, NERC stated that international customers collectively owed Nigerian power companies a total of $12.02 million in unpaid debts for services provided.
Power problem in Nigeria
Power outages in Nigeria have become more frequent in recent times due to insufficient electricity generation capacity.
Despite recent tariff increases for certain domestic consumers, promising them more daily power or up to 20 hours a day, power companies have struggled to fulfil these commitments due to supply constraints.
DON'T MISS THIS: 5 African countries with the most expensive electricity tariff The electricity supply from the national grid had been consistently below 3,000 megawatts for several weeks.
However, since Saturday, following the directive, grid service data revealed that it has surged above 4,700 megawatts. Normally, local customers receive less than 4,000 megawatts on regular days.
