The Nigerian Electricity Regulatory Commission (“NERC”) on 2 July 2020 issued the Guidelines on Distribution Franchising in the Nigerian Electricity Supply Industry (NESI) (the “Guidelines”). This followed the Consultation Paper on the Development of a Regulatory Framework for Electricity Distribution Franchising in the Nigerian Electricity Supply Industry (NESI) published on 17 April 2019.
The distribution companies (“DisCos”) have inherent powers under their respective licence terms and conditions to cede any part of their functions to third parties subject to the approval of NERC. The Guidelines therefore provide the regulatory framework to achieve this objective.
This briefing note provides a highlight of the key provisions of the Guidelines.