NERC May Review MYTO Load Allocation for Discos


ChinemeOkafor in Abuja

The Nigerian Electricity Regulatory Commission (NERC) may either abandon or review for optimal use, its practice of allocating maximum generated quantity of electricity on percentage basis to the 11 electricity distribution companies (Discos).

Under the MYTO load allocation, the 11 Discos share the total volume of power generated by the generation companies (Gencos) on a ratio based on their customer base.

The load allocation formula is contained in the Multi Year Tariff Order (MYTO), which guides the sector.

It has, however, resulted in controversies bothering on load rejection by some of the Discos, as well as insufficient quantity of power allocated to Discos that need more than their normal allocations.

Also, there were claims of financial penalties levied on Discos who take more than their approved daily percentage in the electricity generated by the Gencos.

But the minutes of the last power sectors’ operators meeting held in Enugu, which was obtained by THISDAY in Abuja, explained that this practice may be reviewed by NERC to allow the Discos take as much generated electricity as their networks can take.

The planned review also followed the government’s recent declaration of eligible customers’ regulation in which Gencos are allowed to sell electricity generated by them directly to large users with minimal interference from the Discos.

“NERC to develop and issue an order that would allow Discos to draw more than their MYTO percentage allocation when there is un-utilised power available on the grid, and supply it to their customers or eligible customers,” said the minutes of the meeting.

Similarly, NERC also told the operators at the meeting that it had developed a draft law to deal with theft of electricity in the country.

The draft law, it explained would be reviewed by other stakeholders in the sector for their inputs.

NERC’s Commissioner for Engineering Standards and Safety, Prof. Frank Okafor, stated at the meeting that the commission had developed the draft energy theft law and forwarded to the Permanent Secretary at the Ministry of Power, Mr. Louis Edozien, for onward transmission to the Minister of Power, Works and Housing, Mr. BabatundeFashola.

Also in the minutes of the meeting was a disclosure by the Market Operator (MO) department of the Transmission Company of Nigeria (TCN), that the Niger Delta Power Holding Company Ltd (NDPHC), has enlisted all of its 10 Gencos as market participants in the power sector.

The MO equally reported that the payment performance of the market to service providers was still poor, and indicated that Abuja and Kaduna Discos have commenced their registrations as market participants.