The Nigerian Bulk Electricity Trading Plc (NBET) is set to exit the electricity market as the Nigerian Electricity Regulatory Commission (NERC) licenses multiple firms.

These firms are to buy and sell electricity in bulk from the power generation companies (GenCos).

This is according to an order signed by NERC Chairman Sanusi Garba and Dafe Akpeneye, the Commissioner, Legal, Licencing and Compliance, on Sunday in Abuja.

The order said that the directive took effect on July 25.

The order said that NBET shall forthwith cease to enter into new contracts for the purchase and resale of electricity and ancillary services in the Nigerian Electricity Supply Industry (NESI)”.

In the new order on the transition, NERC said that electricity distribution companies (DisCos) can now purchase electricity directly from generation companies (Gencos) without NBET acting as an intermediary.

According to the commission, any contract executed by NBET in violation of this order shall not be approved and shall be treated as an infraction that is subject to regulatory sanction.

It said: ”NBET shall, in the interim, continue to administer the fully effective contracts with the five Generation Companies (GenCos): Azura Power West Africa Ltd., Omotosho Power PLC, Olorunsogo Power PLC, Nigerian Agip Oil Company Ltd., and Shell Petroleum Development Company of Nigeria Ltd.

”Based on the minimum “take or pay” capacities contained in their respective Power Purchase Agreements (PPAs),” it said.

It said that the capacity from the five plants shall be vested to electricity distribution companies (DisCos) based on the guaranteed share of capacity contained in their respective vesting contracts.

The Electricity Power Sector Reform Act (EPSRA) created NBET to buy and sell electricity in bulk from power producers. NBET was meant to help with the sector’s financial problems temporarily.

NBET was licensed as a bulk trader by the commission on August 23, 2011. The licence issued to NBET had a tenure of 10 years and was subject to renewal as may be determined by the commission.

(NAN).