NERC plans to introduce competition transition charge in Nigeria

The Nigerian Electricity Regulatory Commission (NERC) plans to allow the electricity distribution companies (DisCos) and trading licensees to introduce a competition transition charge (CTC), which has been receiving public criticisms.

The CTC proposes to make the prospective eligible customers (EC) and other consumers, compensate the 11 DisCos in the country for leaving their networks to buy power directly from power generation companies (GenCos). It will enable DisCos to recover permitted revenue and return on invested assets arising from the exit of ECs from their respective network. Also, the proposed CTC will be paid in addition to the transmission charges being paid to state-owned Transmission Company of Nigeria (TCN).



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