The Eligible Customer Regime - Can the Electricity Distribution Companies in Nigeria Validly Declare Force Majeure?

In exercising some of the powers conferred on him by the Electric Power Sector Reform Act 2005 (“EPSRA”), the Minister of Power (the “Minister”), declared four (4) categories of customers eligible to buy power directly from the generation companies (“GenCos”) and other licensees, other than the electricity distribution companies (“DisCos”). By virtue of this policy and Regulations subsequently issued by the Nigerian Electricity Regulatory Commission (“NERC”), the entities who qualify as eligible customers are authorised to source power directly from GenCos, thereby skipping the typical intermediary role of the DisCos in the power sector value chain.