The Nigerian Electricity Regulatory Commission (NERC) conducted a public hearing today to discuss the application for the renewal of the operational license of the Nigerian Bulk Electricity Trading Plc (NBET) for an additional five-year period.
The event drew stakeholders from across the Nigerian Electricity Supply Industry (NESI), including representatives from the House of Representatives Committee on Power, Generation Companies (GenCos), and Distribution Companies (DisCos).
NBET, established on July 29, 2010, under the provisions of the Electric Power Sector Reform Act 2005 (EPSRA), now the Electricity Act 2023, has been a critical player in the Nigerian power sector. Licensed by NERC on November 15, 2011, the company plays a pivotal role in the bulk purchase of electricity and ancillary services from GenCos and IPPs.
NBET resells this electricity to DisCos, acting as an intermediary that ensures payments to GenCos and stabilizes the supply chain following the privatization of the Nigerian electricity market.
During the hearing, NBET presented its case for the renewal, emphasizing its role in maintaining the stability of Nigeria’s electricity market over the past years. The company highlighted its efforts to mitigate financial risks within the sector by ensuring that GenCos receive payments for the electricity they generate, which in turn supports a reliable supply chain to the DisCos.
NERC management welcomed submissions from various stakeholders, who were invited to express their views on NBET’s performance and the need for its continued operation, and assured all attendees that the Commission would carefully consider all opinions and submissions before making a final decision on the license renewal.
They reiterated NERC’s commitment to ensuring that all players within NESI operate in a manner that promotes transparency, efficiency, and sustainability.