The Nigerian Electricity Regulatory Commission has directed all electricity generation companies connected to the national grid to implement Free Governor Control across their generating units, warning that non-compliance could lead to steep penalties, including disconnection.

The directive, referenced NERC/2025/094, was signed on August 26, 2025, by Vice-Chairman Musiliu Oseni and Commissioner for Legal, Licensing & Compliance Dafe Akpeneye.

It takes effect from September 1, 2025.

In power generation, a governor regulates the speed and output of turbines or generators.

FGC allows these systems to automatically adjust output in response to grid frequency changes, helping stabilize the grid and match electricity supply with demand.

Under the order, GenCos that fail to activate FGC on all units by November 30, 2025, will face penalties of up to 10 per cent of the invoice associated with the defaulting unit.

Units that record 90 consecutive days of FGC non-compliance risk disconnection from the grid.

NERC said the measure is aimed at curbing repeated system disturbances and enforcing compliance with the Grid Code, establishing a structured framework to enhance power reliability and stability through strict operational frequency limits, transparent monitoring, and enforceable penalties.

The commission cited its mandate under Section 34(1)(e) of the Electricity Act 2023 to ensure safety, reliability, and quality of electricity services, while Section 34(2)(b) empowers it to establish operating codes and standards.

NERC also reminded operators that Section 12.6.2 of the Grid Code requires every generating unit to be equipped with fast-acting governors capable of regulating turbine speed and output when frequency deviates.

“Section 12.6.2 of the Grid Code for the Nigerian Electricity Transmission System requires all generating units to be fitted with fast-acting FGC that is capable of regulating turbine speed and adjusting power output based on frequency deviation exigencies, i.e., primary control.

“The FGC shall be sufficiently damped for both isolated and interconnected operation modes. The FGC and any other superimposed control loop (load control, gas turbine temperature limiting control, etc.) shall contribute to the primary control to maintain the unit within the generating unit’s capability limits.

“Furthermore, the primary control characteristics shall be maintained under all operational conditions. Where a generating unit becomes isolated from the system but is still available to supply demand, the generating unit must be able to provide primary control to maintain frequency and voltage,” the order stated.

The order mandates all grid-connected GenCos to deploy and activate Free Governor Control (FGC) in all generating units by 30 November 2025 to enhance power reliability, stabilize the grid, and ensure compliance with sections 12.6.2 and 15.8.3 of the Grid Code.

NERC said the measure aims to reduce system disturbances, enforce FGC standards, and impose penalties for non-compliance.

“GenCos shall at all times activate and operate the FGC in real-time without any time delays. GenCos are mandated to procure and supply a Grade Level 5 metering system with IoT-based monitoring capabilities for each generating unit and communicate readiness for installation to the NISO by 31 October 2025. The meters are required to have a minimum capability of measuring active power, reactive power, power factor, generator terminal voltage, and frequency.

“The Nigerian Independent System Operator shall install and integrate all IoT metering systems provided by the GenCos within 20 days of receiving notification of readiness for meter installation from each GenCo. NISO shall actively monitor and enforce strict compliance with the operationalisation of FGC mode in generating units. This shall be achieved through real-time data obtained from the Grade Level 5 IoT meters, ensuring accurate tracking, validation, and assessment of the performance of generating units.

“NISO shall maintain real-time monitoring and record hourly compliance reports on the operation of FGC across all generating units. NISO shall compile and file monthly reports with the commission on the status of compliance with the provisions of the Grid Code on FGC to facilitate regulatory oversight,” the order read partly.

On the consequences for non-compliance, the regulator declared, “Any GenCo that fails to comply with the provisions of sections 12.6.2 and 15.8.3 of the Grid Code on the integration and activation of FGC on all generating units by 30 November 2025 shall be liable to a penalty of a prorated 10 per cent of the invoice associated with the defaulting generating unit for the duration during which it was not operated with its FGC activated, that is, FGC non-compliant.

“Where a generating unit records 90 consecutive days of FGC non-compliance, the affected generating unit shall be disconnected from the grid. Reconnection shall only occur after NISO has certified the unit as fully compliant with the requirements of the Grid Code.

“NISO shall be responsible for determining non-compliance by defaulting GenCos and implementing penalties on the invoice and settlement of the affected GenCo. NISO shall handle the billing, payment processing, and dispute resolution for this penalty in accordance with Rules 28 and 29 of the Market Rules. NISO shall invoice defaulting GenCos the specified penalty amount as part of the monthly market settlement. The proceeds of the penalty shall be remitted to the Ancillary Service Account,” the order read.