THE Nigerian Electricity Regulatory Commission, NERC, has barred the Nigeria Bulk Electricity Trading Plc from entering into new contracts for the bulk purchase and trading of electricity in the country.
The Commission in an order, signed by its Chairman, Engr Sanusi Garba and Commissioner for Legal, Licencing and Compliance, Dafe Akpeneye, gave about 20 power generation companies, GenCos, 60 days to enter into bilateral agreements with electricity distribution companies, DisCos, for the supply of electricity.
NBET was incorporated on 29 July 2010 by the Federal Government to act as a credible and creditworthy off-taker and to be provided with credit support and/or capitalisation by the Federal Government thus enabling the company guarantee payments to GenCos while facilitating bankable project financed independent power projects.
The initial 10 years licence issued to NBET expired in August 2021 and was renewed for another three years. It has bulk purchase contracts with the GenCos and vesting contracts with the DisCos.
NERC in the order directed NBET to continue in the interim to administer fully effective contract with only five GenCos, namely, Azura Power, Omotosho Power, Olorunsogo Power, Agip Oil, and Shell Petroleum Development Company.
The Commission stated: “NBET shall forthwith cease to enter into new contracts for the purchase and resale of electricity and ancillary services in NESI. Any contract executed by NBET in violation of this Order shall not be approved by the Commission and shall be treated as an infraction that is subiect to regulatory sanction.
