According to Section 100 of the EPSR ACT 2005, an Eligible customer “means a customer that is eligible, pursuant to a directive or directives issued by the Minister under Section 27 of the Act, to purchase power from a licensee other than a distribution licensee.” The suppliers of these eligible customers are holders of a trading or generation licence issued by the Commission pursuant to Section 64 and 68 of the Act. It is important to note that depending on their classifications, customers may obtain eligible customer status during the pre-transitional and transitional stages, medium-term market stage, or long-term or full retail competition stage.The Draft Eligible Customer Regulations 2010 has been drafted by the Commission, and will come into effect upon the declaration of the Minister, as required in Section 27. This will then provide for a gradual development of the electricity market in Nigeria. The Draft Regulation is divided into five (5) chapters. Chapter 1 covers general provisions of the regulation, Chapter 2 deals with the process of obtaining the status of an eligible customer, Chapter 3 outlines the rights and obligations of eligible customers and suppliers, Chapter 4 discusses the supplier of last resort, and Chapter 5 covers the transitional and final provisions.

Consultation Paper on Regulatory Framework for Embedded Generation