NBET’s Licence Renewal: NERC holds stakeholders engagement
The Nigerian Electricity Regulatory Commission, NERC, has announced a stakeholders engagement meeting to seek a public view in respect of application for the renewal of the bulk electricity purchase and resale licence filled by the Nigeria Bulk Electricity Trading Plc(NBET or trading licensee) on 12 February 2021.
Stakeholders in the Nigerian Electricity Supply Industry (NESI), & interested members of the public have been charged to file their submission for the engagement.
According to a statement signed by the Commission’s Chairman, Engineer Sanusi Garba, obtained by EnergyDay, the meeting is scheduled to hold on Friday, September 17, in Lagos,
The Commission stated that it issued a bulk electricity purchase and resale license (The Licence) for the maximum statutory tenure of 10 years to NBET on 15 November 2011, following due consideration of section 25(a) of EPSRA.
It further explained that, “Condition 6 of the terms and consideration (T & Cs) of the licence authorities NBET to perform: the purchase of electricity from generation licensees. The vesting or sale of electricity to distribution licensees deemed eligible; Resale of electricity to eleigible customers after the directive by the Minister of Power pursuant to section 27 of the Act.
“As a result NERC has called for the submission from stakeholders and interested members of public on the following:
“Stakeholders perception on NBET’s fulfilment of its mandate following the grant of the licence on November 15, 2011.
“Stakeholders comment on the progress that has been made towards achieving a more competitive, contract based , electricity market since the issuance of the initial licence to NBET in 2011.
“Stakeholders comments on the imminent commencement of partial activation of contracts for phased bilateral contracting for power between generation licencee and distribution licensees.
“Stakeholders comments on the innovation for the rights and obligation of NBET following the declaration of a substantially competitive market as provided for in EPSRA transitional compliance mechanism.
“Stakeholders comment on NBET’s role in a substantially fully competitive market with due consideration of pending legacy issues as well as any other matters that stakeholders believe should be given due consideration.”
NERC however noted that the T & C of licensee recognises the status of NBET as a transitional license in NESI whose role changes with the evolution of competitions in the market by subjecting the licence to three years review of NERC during the pendency of the licence, and subjecting application for renewal or extension of the licence to terms and conditions that NERC deems appropriate.