The Nigerian Electricity Regulatory
Commission (NERC) has issued an order which would impose strict financial penalties on any
electricity distribution company (DISCO) that rejects electricity allotted it by the System Operators (SO). It became imperative to impose this order especially now, when there is no notification ahead of such rejection, according to a report by The Nation.
In the order with order number NERC 139 entitled “Order on the Imbalance Application Mechanism during the Transitional Electricity Market”
was issued on account of the high
incidence of indiscipline by DISCOs who would reject load allocations by the system operators.
The Nigerian Electricity Supply Industry (NESI) operates on the basis of a sharing formula approved by NERC, which the system operators uses to allocate generated electricity to the DISCOs, many of which have been rejecting their allocation lately.
Rejection of load allocation besides causing imbalance in the system prevents electricity consumers from realising the maximum benefit of the recent increase in the electricity generation nationwide.
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