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NERC to Penalize DisCos Supplying Power Beneath Transmission Lines


The Nigeria Electricity Regulatory Commission (NERC) is set to impose penalties on Electricity Distribution Companies (DisCos) in Nigeria, which provide electricity to large areas of communities located beneath transmission lines.

Speaking during the 1st Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting of 2024, the NERC Commissioner, Engineering, Performance and Monitoring, Chidi Ike called such act illegal, and DisCos will not be allowed to benefit from it, “You see swathes of communities under transmission lines. DisCos supply power to them despite them being in clear contravention of the Right of Way of TCN. We are going to focus on those areas and make sure that DisCos aren’t going to benefit from any form of illegality.”

He further stated, “We are planning to organize a comprehensive workshop for Licensees to examine their responsibilities. The workshop will cover the legal framework, grid code, HSE, and everything they need to know, following which there will be sanctions for non-compliance.”

Also speaking during the meeting, the NERC Vice Chairman, Musliu Useni urged DisCos to improve their performance or suffer consequences. “We will look at performance on a case by case basis. Sanctions and actions will not be the same. Ensure that you improve your efficiency. If your efficiency is at the level expected, you will get your full OPEX. If you don’t perform, you will only get 50% of your admin OPEX.”

Earlier, NERC Chairman, Sanusi Garba had provided an overview of Strategic Direction for NESI for year 2024.

The meeting is expected to provide Strategic Direction for the NESI, review compliance since the last meeting, and give Licensees a platform to discuss issues.

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