• Monday, December 11, 2023
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17 independent electricity distributors get licences, 10 operational

TNL aims to halve energy costs for businesses

The Federal Government has licensed 17 Independent Electricity Distribution Networks (IEDN) providers, 10 of which are actively operational as at December 2022, a new report by the Nigeria Electricity Regulatory Commission (NERC) has revealed.

The report titled “2022 Market Competition Report” was released on Tuesday, October 3 by the Commission.

NERC said, “All the 11 successor Discos (distribution companies) have been privatised. Ownership and management of the Discos have been transferred to private investors.

“Additional private distribution company has been licensed in a specified franchised area. 17 Independent Electricity Distribution Networks’ operators have been licenced, of which 10 are operational as at December 2022.

Read also: Nigeria’s new electricity act: What it means for climate change?

“The regulator explained that the market competition report was prepared in compliance with Section 24(2) of the Electric Power Sector Reform Act 2004, which mandates the commission to prepare an annual report for the minister as to the potential for competition in the Nigerian Electricity Supply Industry.

“This report provides a review of the level of competition in the NESI and assesses the progress for a transition to a more competitive market. The report further provides recommendations for transition to a more competitive market pursuant to Section 26 of ESPRA.”

According to the Commission, the report is directed at a wide spectrum of readers including government officials and institutions, private sector, energy economists, engineers, financial and market analysts, potential investors as well as general readers.