‘Bilateral electricity market may face delay’
13 September 2024 |
12:32 am
Transition of the electricity industry in Nigeria to a bilateral market may face setbacks as the Nigerian Bulk Electricity Trading Company (NBET), yesterday, in Abuja asked for a five-year licence renewal.
Transition of the electricity industry in Nigeria to a bilateral market may face setbacks as the Nigerian Bulk Electricity Trading Company (NBET), yesterday, in Abuja asked for a five-year licence renewal.
Some of the stakeholders, who gathered at a forum organised by the Nigerian Electricity Regulatory Commission (NERC) over the issue, supported the move, citing NBET’s role in managing power purchase agreements (PPAs) and helping in the transitioning of the bilateral markets.
NERC, in a new order, had dislodged NBET from the electricity market, shifting the market towards bilateral contracts between generation/trading licensees and distribution licensees, thereby removing the government as the risk bearer.
The order specifies a 60-day timeline from August 2024 for DisCos to assume responsibility for implementing cost-reflective tariffs. This shift to bilateral agreements will remove the Federal Government from the financial equation. DisCos are expected to directly negotiate contracts with GenCos and fulfill their obligations accordingly.
Speaking at the forum, the Commissioner, Legal, Licensing and Compliance at NERC, Dafe Akpeneye, stressed the need for forums, instead of the regulator, to take decisions.
Earlier the generation companies had argued that market risks arising from the transition of the Nigerian Electricity Supply Industry (NESI) towards a bilateral market may further compound electricity challenges in Nigeria unless concerted efforts are taken.
Related
1 Apr
In response to rising security concerns, the Federal Capital Territory (FCT) Police Command has issued a directive requiring individuals and groups to notify law enforcement before embarking on camping or hiking activities. The Commissioner of Police, CP Wale Ajao, in a statement, emphasised the need, warning that remote and unsecured locations pose significant security risks.…
1 Apr
Gov. Babajide Sanwo-Olu of Lagos has advised residents of the state intending to travel for the 2025 Hajj to ensure they are healthy before embarking on the pilgrimage. The governor also urged the residents to continue to give thanks to the Almighty for rebirth, growth and collective development due to the just-concluded Ramadan fast. He…
30 Mar
Maritime stakeholders have decried that lack of funds, unavailability of rail coaches, and lack of patronage to the transport sector, among others, are militating against the progress of the rail sector in the country. The stakeholders raised the concern at a summit organised by the Nigerian Shippers Council in collaboration with the Nigerian Railway Corporation…
26 Mar
The Managing Director of the Nigerian Railway Corporation(NRC) Dr Kayode Opeifa has declared that the Western district is ready for cargo train movement between Lagos and Kano on the narrow and gauge. Opeifa made this known at Dugbe on Tuesday, the Ibadan Narrow Gauge Train Station after inspecting Moniya Freight Park, in Ibadan, Oyo State,…
26 Mar
Vice President Kashim Shettima has called on the Nigerian judiciary to remain steadfast in upholding justice and resisting external pressures that threaten its independence. Speaking at the Body of Benchers maiden Annual Lecture and Public Presentation of the Body of Benchers Law Report, on Wednesday Shettima emphasized that the judiciary is a crucial pillar of…
26 Mar
Worried by the growing number of children under detention in correctional facilities across Nigeria, the Minister of Interior, Dr. Olubunmi Tunji-Ojo, said that the government is working to tackle the challenge. The minister stated this at a meeting with correctional sector stakeholders on the official ‘Launch Report on the National Assessment of the Situation of…
26 Mar
The University of Port Harcourt has promoted the Director General of NESREA, Dr. Innocent Barikor, to Professor of Political Economy and Development Studies. A statement by the Vice Chancellor, Prof. Onwunari Georgewill, said his promotion came alongside with that of 45 others, adding that the school approved it during the 187th meeting of the Governing…
25 Mar
The Niger Delta Development Commission (NDDC) has announced the launch of its Foreign Post Graduate Scholarship Programme aimed at empowering young people from the Niger Delta region with advanced training and skills. The commission management revealed that the scholarship is designed to help selected individuals acquire specialisations in their fields of study, thereby enabling them…
25 Mar
Nigeria’s Coordinating Minister of Health and Social Welfare, Professor Muhammad Pate, has assured that Nigerian pilgrims will fully comply with Saudi Arabia’s health requirements for the 2025 Hajj. While stressing the commitment of the Federal Government to safeguarding the health of all pilgrims, Pate said it is important for the country to adhere to the…
23 Mar
The Director General of the Simplified Movement Worldwide, Evans Bipi, has strongly refuted claims by the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, that the declaration of a state of emergency in Rivers State was due to heightened insecurity and killings. Bipi described Fagbemi's claims as "baseless, fallacious, and an ill-fated…
×
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.