Under the current arrangement, the Nigerian Bulk Electricity Trading Plc (NBET), procures power in bulk from Independent Power Producers (IPPs), and GenCos for resale to DisCos, eligible or international customers.
Under the new regulation or order approved by the Nigerian Electricity Regulatory Commission (NERC), NBET that carries out the role of a “pool” administrator for the Nigerian electricity market, it will no longer be relevant as the electricity market has grown and matured to operate without it.
In a telephone interview with Vanguard, yesterday, the Chief Executive Officer, Association of Power Generation Companies (APGC), Dr. Joy Ogaji, said: “The market has grown and exceeded this level. Contracts have to be bilateral, between GenCos and DisCos with adequate securitization/ guarantees. With the right framework and monitoring in place, the sector will be liberalised and exceed targets”.
Similarly, the Managing Director/CEO of Benin Electricity Distribution Company Plc, Deolu Ijose, said: “All Discos are affected by the directive. With the gap in supply in relation to demand/requirements, there is an urgency to augment by way of bilateral power procurement, including green energy”.
Pricing remains a major issue as stakeholders still need NERC to reset tariff, required to efficiently drive operations under the new regime.
On her part, the Managing Director of Eko Electricity Distribution Company, Tinuade Sanda, said: “It is an order. The commission had, prior to now, ordered bilateral sale and purchase sometime in 2023. However, due to the forex escalation and inability to reset the tariff, it was stalled.
