The Nigerian Bulk Electricity Trading Plc (NBET) has begun moves to renew its licence to enable it continue operations beyond November 2024 when the present licence is expected to expire.
This follows the recent order by the Nigerian Electricity Regulatory Commission (NERC), which bars NBET from entering into new contracts for the purchase and resale of electricity and ancillary services in the Nigerian electricity supply industry, in accordance with Section 7(2) of the Electricity Act 2023.
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Speaking during the public hearing on ‘Licence renewal application’ in Abuja on Thursday, Johnson Akinnawo, managing director of NBET, explained that the organisation over the years had engaged in activities aimed at improving the overall health of the electricity supply industry.
According to him, NBET has administered contracts portfolio with an annual trading volume in excess of $2 billion, making considerable progress in the quest to achieve its mission of being an effective and efficient catalyst for private sector investment to the Nigerian electricity industry.
“The company’s vision is the attainment of a self-sustaining electricity market driven by market forces, where public funding and guarantees will no longer be the drivers of investment and transactions.
“Pursuant to the bulk electricity purchase and resale licence that NERC issued to NBET in 2011 and subsequently renewed in 2021.
In line with NERC’s license terms, NBET achieved operationalisation as a going-concern and built the capacity to demonstrate credibility to potential developers and investors in the power sector, especially its IPP planning and procurement capabilities.
“NBET established a formalised application and project monitoring process and a contract which allowed it to assume PHCN and existing PPAs with IPPs and manage the vesting contract with DISCOs. NBET heralded the commencement of a contract regime in the electricity market and currently has in its portfolio, PPAs and electricity purchase contracts with twenty-Seven (27) GenCos and Vesting Contracts with eleven (11) DISCos,” he said.
Seeking a five-year trading licence, the MD said that within the five-year trading licence period, the NBET will be expected to transform into an energy exchange aimed at promoting bilateral trading between GenCos/Independent Power Producers (IPPs) and commercial/industrial customers through an automated energy trading platform developed and deployed for the sale of electricity, with multiple energy brokers.
He explained that the organisation with the years granted, would ensure the rapid growth of the market, create a diversified trading environment, while also closing the supply-demand gap for electricity in the country.
