A Review of the Nigerian Energy Industry

Govt opens window for states, individuals on 1MW power generation

Mr. Fashola

OpeOluwani Akintayo

25 May 2018, Sweetcrude, Lagos – Minister for Power, Works and Housing, Babatunde Fashola, has said the federal government has given a window for 1 megawatts, MW, power production by state governments and individuals.

The minister revealed this while at the Enugu State government house on Tuesday.

According to him, the window was provided towards ensuring regular power supply across the country. He said the 1MW window is embedded in the Maximum Demand, MD, customers which allows for purchasing of power directly from generation companies.

He stated that the production of 1MW power, is “without conditions attached”.

The Nigeria Electricity Regulatory Commission, NERC, in June 2017, introduced the MD customer regime.

The MD customers are high-end power consumers with dedicated facilities.

These customers are largely industrial and high premium electricity users, who consume an excess of 50KVA on a monthly basis.

This means that more than 90% of customers who fall into this category are commercial customers as well as large multi-storey residential luxury apartments.

These customers are usually serviced with their own dedicated transformers as against public transformers.

Customers, who do not fall under this category, are termed non-MD customers, meaning that they rely on public transformers for electricity supply.

MD customers are exempted from estimated billing.

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