Distribution Code Introduction

The Electric Power Sector Reform Act, 2005 (known as the Act) legally supported the restructuring of Nigeria's Power Sector. This Act mandated the separation of the Generation, Transmission, and Distribution sectors. However, the Electric Power Sector Reform Act, 2005 has been replaced by the Electricity Act, 2023. The new Electricity Act extends the scope of electricity generation, transmission, and distribution to state governments and interested individuals, beyond the 11 existing distribution companies. The Distribution Code, or D Code, applies to the Distribution Sector of the Nigerian Electricity Supply Industry. It covers the networks ranging from 230V to 33kV.

Purpose of the Distribution Code:

(i) Ensure efficient electricity usage for all Distribution Network Users without discrimination.
(ii) Promote competition in electricity generation and supply.
The Distribution Code is applicable to all Distribution Companies and Users of the Distribution Networks in Nigeria, and all must comply with its provisions. .



Roles of Distribution Companies

Connections and Electricity delivery

Provide connections and deliver electricity to Users as per laws, licenses, and the Distribution Code, maintaining technical and safety standards.

Procurement of Ancillary Services

Procure Ancillary Services for the Transmission and System Operator, recovering associated costs.
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Manage network emergencies

Manage network emergencies and restore normal conditions safely.



Demand forecasting

Compilation of historical and other relevant demand data for purpose of conducting the demand on short, medium or long term basis.


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User connections)

Distribution companies are responsible for the evaluation and approval of all users connection to the network



Metering at all Network Connection Points

It is the responsibility of the Distribution companies to ensure that metering takes place at the connection points of the distribution network
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Compliance with the Distribution Code and Health and Safety Regulations

Every Distribution company must comply with the Distribution code, health and safety rules contained in relevant documents


Enforcement of System Tests Procedures

Distribution companies will develop, monitor, and enforce procedures for system tests to ensure safety on the network.
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Compliance with the Distribution Code)

Distribution companies are to conduct essential tests and monitor User equipment to ensure compliance with the Distribution Code.

Reporting

Distribution companies are to report scheduled and unexpected actions, such as faults, outages, and network upgrades, to Users, Connectors, and the Regulator.



Some of the NESI industry participants are:



1.



Federal Ministry of Power (FMP)

Ministry of Power


2.


Nigerian Electricity Regulatory Commission (NERC)

NERC


3.


Electricity Generation Companies (GenCos)

Electricity Generation


4.


Transmission Company of Nigeria (TCN)

TCN


5.


Electricity Distribution Companies (DisCos)

Electricity Distribution


6.


Nigerian Bulk Electricity Trading Plc (NBET)

NBET 3


7.


Gas Aggregator Company of Nigeria (GACN)

GACN


8.


Nigerian Electricity Management Service Agency (NEMSA)

NEMSA


9.


Independent System Operator (ISO)

ISO


10.


National Hydroelectric Power Producing Areas Development Commission (N-HYPPADEC)

N-HYPPADEC


11.


Rural Electrification Agency (REA)

REA



nesi

Some of the NESI industry participants




Key Components of Nigeria Electricity value chain

Hover on any of the components