The Ibadan Electricity Distribution Company (IBEDC) is challenging Phoenix Steel Mills Limited’s choice to leave its services and opt for eligible customer status. Eligible customers are those allowed to purchase electricity directly from generation companies rather than through distribution firms.
Our correspondent has learned that Phoenix Steel Mills switched from the Ibadan Disco this year and received authorization from the Nigerian Electricity Regulatory Commission (NERC) to buy power directly from a generation company.
IBEDC, unhappy with this move, has filed a petition with NERC, arguing that Phoenix Steel Mills transitioned to an eligible customer status without following the proper procedures.
The Disco claimed that NERC made an error by granting eligible customer status to Phoenix Steel Mills, as the company did not provide adequate notice before disconnecting from the distribution network to source energy directly from a generation company.
According to NERC’s website, both parties recently presented their cases before a panel. The regulator confirmed that Phoenix Steel Mills was indeed granted eligible customer status this year.
IBEDC also included the Transmission Company of Nigeria (TCN), which handles the transmission of bulk electricity from the generation company to eligible customers, in its petition.
Phoenix Steel Mills’ legal team argued that all necessary conditions were met when applying for the eligible customer status from NERC.
Dr. Musiliu Oseni, Chairman of the Petition Hearing Panel and NERC Vice Chairman, ensured a fair hearing for all involved parties, including TCN representatives.
“Following the hearing, Oseni stated that NERC would review all submissions and issue a ruling, which will be communicated to all parties,” according to the NERC statement.
