- Nigerian Bulk Electricity Trading Plc (NBET) is seeking a renewal of its operating license at a public hearing with NERC, highlighting its role in facilitating over $2 billion in annual power trading.
- NERC officials are reviewing NBET’s performance and the evolving regulatory landscape as they consider the renewal request amid significant sector changes.
Nigerian Bulk Electricity Trading Plc (NBET) appeared before the Nigerian Electricity Regulatory Commission (NERC) on Thursday to argue for the renewal of its operating license, which expires on November 21. The public hearing at NERC’s Abuja headquarters saw NBET present its achievements and plans to the commission.
NBET, established by the federal government to mediate between Generation Companies (Gencos) and Distribution Companies (Discos) through Power Purchase Agreements (PPAs) and Vesting Contracts, reported a significant milestone of trading over $2 billion annually. The company’s Managing Director and Chief Executive, Johnson Akinnawo, emphasised NBET’s role in incentivising nearly $1 billion in new power generation investments and its transparent management of a substantial contracts portfolio since it began trading in 2015.
Akinnawo argued that NBET is essential for achieving a self-sustaining electricity market and requested a five-year license renewal to continue its pivotal role. He also addressed the need for payment commitments from Discos to facilitate NBET’s contractual obligations to Gencos. The company plans to transition into an energy exchange platform to promote bilateral trading and enhance market efficiency.
NERC Commissioner Dafe Akpeneye, who chaired the panel, acknowledged the changes in the sector since NBET’s last license renewal and emphasised the importance of stakeholder input in evaluating the renewal request. He noted that the industry has undergone significant transformations, including new legal frameworks and regulatory changes.
The commission considers these developments and the evolving regulatory landscape as it deliberates on NBET’s request. Akpeneye highlighted that future transactions in the sector will involve private parties with minimal government intervention, reflecting the sector’s shift toward market-driven operations.
The hearing outcome will determine whether NBET’s operating license will be renewed, allowing the company to continue its crucial role in Nigeria’s electricity market.