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Frequently Asked Questions

Some of the benefits of Electricity Act 2023 over the repealed EPSR Act 2005 are:
  • Renewable Energy Integration: The Electricity Act 2023 places a stronger focus on integrating renewable energy sources into the power sector.
  • State Government Participation: It allows for increased participation of state governments in the electricity sector, promoting more localized management and governance (Electricity Act 2023, section 63 (1).
  • Clearer Regulatory Frameworks: The new act offers clearer and more defined regulatory frameworks, reducing ambiguity and enhancing efficiency.
  • Incentives for Private Investment: It provides a robust mechanism to incentivize private investments, which is crucial for the development and expansion of the electricity market.
  • Improved Electricity Supply and Accessibility: Overall, the act aims to improve the electricity supply and accessibility across Nigeria, addressing the needs of a growing population and economy.
NESI means Nigeria Electricity Supply Industry. It refers to the entire system involved in generating, transmitting, distributing, and supplying electricity in Nigeria. It encompasses various entities such as the Transmission Company of Nigeria (TCN), Electricity Distribution Companies (DisCos), Electricity Generation Companies (GenCos), and regulatory bodies like the Nigerian Electricity Regulatory Commission (NERC).
To establish and operate a State Electricity Regulatory Commission (SERC), state authorities must obtain approval from the Nigerian Electricity Regulatory Commission (NERC). This is particularly important when the intrastate electricity market depends on the national grid or other interstate sources of power generation. Essentially, the state must inform NERC and officially request the transfer of regulatory authority before setting up a SERC and managing its own electricity market.
A "power system disturbance" is any occurrence that interrupts the usual functioning of the electricity grid, such as a fault, voltage fluctuation, or line outage. In contrast, a "power system collapse" is a drastic outcome where a significant portion of the grid undergoes a widespread blackout due to a major disturbance that the system cannot recover from, often leading to cascading failures and substantial voltage drops throughout the network.
According to the Electricity Act 2023, distribution companies (DisCos) report to the Nigerian Electricity Regulatory Commission (NERC), which acts as the apex regulator for the electricity sector in Nigeria; meaning all electricity distribution companies are required to submit reports and comply with the regulations set by NERC.
The Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator (MO) play distinct roles in Nigeria's electricity market:
  • NBET: Acts as the bulk buyer of electricity from Generation Companies (GenCos) and Independent Power Producers (IPPs). It then resells this power to Distribution Companies (DisCos) and other eligible customers1. NBET is responsible for managing Power Purchase Agreements (PPAs) and ensuring that payments are made to GenCos.
  • Market Operator (MO): Oversees the day-to-day operations of the electricity market. This includes managing the grid, ensuring the balance between electricity supply and demand, and facilitating the settlement of transactions between market participants3. The MO issues settlement statements and ensures that all financial transactions are accurately processed.
  • In summary, while NBET focuses on purchasing and selling bulk electricity and managing contracts, the Market Operator ensures the smooth functioning and financial settlement of the electricity market. Source: 1. www.nbet.com.ng; 2. onem.gov.ng; 3. nbet.com.ng
Ensuring that all Nigerians have 24-hour electricity is a multifaceted challenge primarily due to the country's aged and weak infrastructure leading to ocasional grid failures. Despite these obstacles, there have been notable strides forward. For example, the Transmission Company of Nigeria (TCN) has reported that some regions, especially those classified in Band A, are now enjoying 20 to 22 hours of electricity daily. Additionally, TCN is actively developing a backup system financed by the World Bank, which is designed to minimize system disruptions and enhance power supply reliability. The current initiatives indicate that such a goal may become more achievable in the foreseeable future as infrastructure improvements progress.
Rain improves electricity supply in Nigeria due to increased water levels for hydroelectric dams. Added hydro power to generation from on gas-fired power plants during the rainy season significantly raises the total country generation available to supply electricity to customers. However, with rains come tripping of some electricity supply equipment such as 330, 132, 33 and 11 kV transmission and distribution lines. These trippings occasionally impact on electricity supply to some customers.
The time it takes to restore electricity after a fault report in Nigeria can vary significantly depending on the nature and severity of the fault, as well as the location. On average, it can take anywhere from a few hours to several days. Factors such as the availability of spare parts, the responsiveness of repair teams, and the extent of the damage all play a role in the restoration time. In some cases, minor faults can be resolved within a few hours, but more severe issues, especially those involving major equipment failures or extensive damage, can take much longer to fix.
Here are some essential safety procedures to follow when plugging appliances into a power supply:
  1. Check the Appliance and Plug: Ensure that the appliance and its plug are in good condition, with no exposed wires or damage.
  2. Use Dry Hands: Always make sure your hands are dry before handling plugs and electrical appliances to prevent electric shock.
  3. Check the Outlet: Verify that the power outlet is not damaged and is suitable for the appliance's voltage and current requirements.
  4. Turn Off the Appliance: Before plugging it in, make sure the appliance is turned off. This can prevent sudden power surges.
  5. Insert Plug Fully: Insert the plug fully into the outlet to ensure a secure connection, avoiding any loose connections that could cause overheating or sparks.
  6. Avoid Overloading Outlets: Do not plug too many devices into a single outlet or power strip, as this can cause overheating and potentially start a fire.
  7. Use the Right Extension Cords: If you need to use an extension cord, ensure it is rated for the power requirements of the appliances you are connecting.
  8. Keep Cords Tidy: Arrange cords neatly and keep them away from high-traffic areas to avoid tripping hazards and damage to the cords.
  9. Unplug Safely: When unplugging an appliance, pull the plug itself rather than the cord to avoid damaging the wires.
  10. Avoid Wet Areas: Keep electrical appliances and outlets away from water and damp areas to prevent electric shocks and short circuits.
By following these safety procedures, you can help ensure a safe and reliable electrical setup in your home. Stay safe!
Here are some key safety precautions to follow when using an electric cooker:
  1. Read the Manual: Always refer to the manufacturer's manual for specific safety instructions and guidelines for your electric cooker model.
  2. Keep the Cooker Clean: Ensure the cooker is clean and free from grease and food particles, as these can catch fire.
  3. Use Proper Cookware: Use cookware that is appropriate for electric cookers, ensuring it has flat bottoms and proper fitting lids.
  4. Stay Alert: Never leave the cooker unattended while it is in use. Always stay close by to monitor the cooking process.
  5. Avoid Overloading: Do not overload the electric cooker with too much food or liquid, as this can cause spills and overheating.
  6. Keep Children Away: Ensure that children and pets are kept away from the cooker while it is in use to prevent accidents.
  7. Use Dry Hands: Always handle the cooker and its components with dry hands to prevent electric shock.
  8. Unplug When Not in Use: Unplug the cooker when it is not in use to reduce the risk of electrical hazards.
  9. Check Cords and Plugs: Regularly inspect the cords and plugs for any signs of damage. Do not use the cooker if the cords are frayed or damaged.
  10. Avoid Using Extension Cords: If possible, plug the cooker directly into a wall outlet instead of using an extension cord to prevent overloading and reduce the risk of fire.
  11. Use the Right Temperature Settings: Follow recipes and guidelines to use the correct temperature settings to avoid overheating and burning food.
  12. Keep Flammable Materials Away: Ensure that flammable materials, such as kitchen towels and paper, are kept away from the cooker.
By following these precautions, you can safely enjoy the benefits of using an electric cooker in your kitchen.
Generally, if the fridge is new, no scratch on it, dry floor and free from sharp object that can expose the electrical cable used to power the fridge, it may not be necessary to put on shoes while picking a bottle from the fridge. However, it is safer to always put on foot wears such as leather shoes or slippers before touching an electrical appliance.
There are several reasons why one street might have electricity while an adjacent street experiences a blackout, even if they are on the same transformer:
  1. Faulty Connections: There could be a faulty connection or damaged wiring on the street experiencing the blackout, while the adjacent street remains unaffected.
  2. Partial Transformer Failure: The transformer might be partially damaged, causing it to supply power to one street but not the other.
  3. Circuit Breaker Issues: A circuit breaker might have tripped on the street with the blackout, cutting off power to that area while the adjacent street remains powered.
  4. Load Management: Sometimes, power distribution systems manage loads by selectively cutting off power to certain areas to prevent overloading, especially during peak usage times.
  5. Maintenance Work: There might be ongoing maintenance or repair work on the street experiencing the blackout, while the adjacent street is not affected.
  6. Local Faults: Localized faults, such as damaged power lines or equipment on the affected street, can cause a blackout while the adjacent street remains powered.
Utility companies work to identify and resolve these issues as quickly as possible to restore power to all affected areas. If you're experiencing a blackout, it's a good idea to contact your local electricity distribution company for more information and assistance.
Service Based Tariff (SBT) is a billing system introduced by the Nigerian Electricity Regulatory Commission (NERC). The goal of SBT is to ensure that electricity tariffs paid by consumers reflect the quality and quantity of power they receive. Under this scheme, consumers are categorized into different service bands based on the average number of hours of electricity supply they get per day.
Here are the service bands under SBT:
  • Band A: Minimum of 20 hours of electricity supply per day
  • Band B: Minimum of 16 hours of electricity supply per day
  • Band C: Minimum of 12 hours of electricity supply per day
  • Band D: Minimum of 8 hours of electricity supply per day
  • Band E: Minimum of 4 hours of electricity supply per day
Consumers in higher service bands (e.g., Band A) pay higher tariffs compared to those in lower service bands (e.g., Band E). The SBT scheme aims to incentivize Distribution Companies (DisCos) to improve their service delivery and infrastructure.
An eligible electricity customer in Nigeria is defined by the Nigerian Electricity Regulatory Commission (NERC) and falls into one of the following categories:
  1. Large Power Users: Customers whose consumption exceeds 2 MWh/h over a period of one month and are connected to a metered 11kV or 33kV delivery point on the distribution network.
  2. Direct Connections to Transmission Network: Customers connected directly to a metered 132kV or 330kV delivery point on the transmission network under a transmission use of system agreement.
  3. Direct Connections to Generation Facilities: Customers connected directly to a metered delivery point to a generation facility and have entered into a bilateral agreement for the construction, installation, and operation of the distribution system.
  4. Site Aggregation: Groups of end-use customers who combine multiple sites to meet the eligibility criteria and apply to the Commission for eligibility status.
These customers are permitted to purchase electricity directly from Generation Licensees and Trading Licensees, bypassing the traditional distribution companies. Source: nerc.gov.ng

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