NERC Commences Renewal of NBET Resale License

The Nigerian Electricity Regulatory Commission (NERC) has commenced the process of renewing the resale license of the Nigerian Bulk Electricity Trading Plc, The Nation has learnt.

This was contained in a document titled: “Stakeholder engagement on the renewal of the bulk electricity purchase and resale license issued to The Nigerian Bulk Electricity Trading Plc.”

NBET is the administrator of the national power pool and the financial flow in the Nigerian Electricity Supply Industry (NESI).

The Nation obtained the document on Sunday, which the NERC, chairman, Sanusi Garba, signed.

He said: “The Nigerian Electricity Regulatory Commission (“NERC”) or “Commission”) hereby invites stakeholders in the Nigerian Electricity Supply Industry (“NESI”) and interested members of the public to a renewal of the bulk electricity purchase and resale licence filed by the Nigerian Bulk Electricity Trading Plc (“NBET”) or the “Trading Licensee”) on 12 February 2021.”

According to him, this stakeholder engagement is being convened pursuant to sections 45 and 47 of the Electric Power Sector Reform Act (“EPSRA” or the Act) and section 7 of the NERC Business Rules of the Commission Regulations 2006 (the Business Rules”).

Garba recalled that the NERC issued a bulk electricity purchase and resale licence (the “Licence”), for the maximum statutory tenure of 10 years, to NBET on 15th November, 2011 following due consideration of sections 25(a) and 68(1)(2) of EPSRA.

The document explained that condition six of the terms and conditions of the licence authorised NBET to perform the underl-isted activities in NESI:

“A. The purchase of electricity from generation licensees.

B. The vesting or sale of electricity to distribution licensees deemed eligible.

C. Resale of electricity to eligible customers after the directive by the Minister pursuant to section 27 of the Act.”

Continuing, the document revealed that part of the “licence recognises the status of NBET as a transitional licensee in NESI whose role changes with the evolution of competition in the market by subjecting the licence to 3-year reviews by the commission during the pendency of the licence; and licence of terms and conditions that the commission considers appropriate.

“The transitional nature of NBET’s role in NESI and the adoption of a phased approach to the development of a competitive electricity market is recognized in section 25 of EPSRA which provides that “immediately following the declaration by the Minister, under section 24(3) that a more competitive market is recognised in section 24(3) that a more competitive market is to be initiated , the trading Licensee described in the section 25(a) shall not enter into any further contract for the purchase of electrical power or ancillary services and it shall, in in accordance with its rights and obligations to purchase electrical power and ancillary services to other licensees.”

The NERC thus, sought inputs from stakeholders and interested members of the public on their perception on NBET’s fulfilment of its mandate following the grant of the licence on 15th November, 2011.

It also called for stakeholders comments on progress that has been made toward achieving a more competitive, contract-based electricity market since the issuance of the initial licence to NBET in 2011.

The commission also sought comments on the imminent commencement of partial activation of contracts for phased bilateral contracting for power between generation licensees and distribution licensees.


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