The Nigerian Electricity Regulatory Commission (NERC) may either abandon or review for optimal use, its practice of allocating maximum generated quantity of electricity on a percentage basis to the 11 electricity distribution companies (Discos), THISDAY reports.
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 bordering 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.
But the minutes of the last power sectors’ operators meeting held in Enugu, 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 the ‘eligible customers’ regulation in which Gencos are allowed to sell electricity generated by them directly to large users with minimal interference from the Discos.