Distribution Licence (On-Grid / Off-Grid)

Distribution Licence Application

A Distribution Licence authorizes the construction, operation and maintenance of distribution systems for supply of electricity to end-users.


 

Application Requirements

  1. Completed application form.
  2. Certificate of incorporation and memorandum and articles of association, or deed of partnership, or deed of trust.
  3. Registered title documents (as applicable).
  4. Tax clearance certificate for immediate past three (3) years.
  5. Ten-year business plan.
  6. Power purchase agreement or resale agreement.
  7. Network agreement with transmission licensee.
  8. Retail agreement with end-users.
  9. EPC contractor MoU (if applicable).
  10. Technical partner MoU (if applicable).
  11. Financing agreements.
  12. Demand forecast.
  13. Project location.
  14. Voltage levels (33kV, 11kV, 415V, 230V).
  15. Connection points.
  16. Pole type. (wood, Concrete, Steel, etc)
  17. Installation method. (overhead, underground, etc)
  18. Detailed Project Design
    • Site map
    • Single line diagram
    • Control rooms
    • Substations
  19. Line length
  20. Environmental Impact Assessment
  21. Transformer data
  22. Connection agreement with TCN
  23. Network impact analysis
  24. Peak load projections
  25. Network capacity
  26. BEME
  27. Protection systems
  28. Health & Safety Policy

 

Off-Grid Applicable Fees

  • Processing Fee: NGN 100,000
  • License Fee: US$20,000
  • Renewal Fee: NGN 50,000

 

On-Grid Application Fees

  • Processing Fee: NGN 1,000,000
  • Licence Fee: US$75,000
  • Renewal Fee: NGN 500,000

 

Processing Timeline

  • Six (6) Months

 

Additional Provisions

Fees apply to applications for the assignment or ceding of a licence, transfer of undertaking, or change in shareholding of licensed entities in accordance with applicable regulations.

All outstanding debts, including operating fees owed to the Commission by a licensee, must be fully settled prior to the processing of such applications.

A non-refundable processing fee of NGN 1,000,000 shall apply to requests for assignment, transfer, or change in shareholding.

The Commission reserves the right to request additional information or documentation as may be required for the processing of any application for licences, permits, or authorisations.

The stated processing timeline shall commence from the date the Commission acknowledges receipt of a complete application and shall end on the date the Applicant is formally notified of the decision to approve or refuse the application.


 

Contact Information

Nigerian Electricity Regulatory Commission (NERC)
Plot 1387, Cadastral Zone A00, Central Business District, Abuja
Email: info@nerc.gov.ng
Website: www.nerc.gov.ng

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