The Nigerian Electricity Regulatory Commission (NERC) has issued an order preventing the Nigeria Bulk Electricity Trading Plc (NBET) from engaging in new bulk purchase and trading contracts for electricity. Signed by Chairman Sanusi Garba and Commissioner Dafe Akpeneye, the order also mandates around 20 power generation companies (GenCos) to establish bilateral agreements with electricity distribution companies (DisCos) within 60 days.
NBET, incorporated in July 2010, has its role restricted to administering existing contracts with only five GenCos. These include Azura Power, Omotosho Power, Olorunsogo Power, Agip Oil, and Shell Petroleum Development Company. The move aims to shift the market towards bilateral contracting and limit the Federal Government’s fiscal exposure.
The order is part of NERC’s efforts to foster a more competitive market and transition to “take-or-pay” contracts, promoting certainty and market discipline.
News Editor