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NERC Calls for Reassessment of NBET License Renewal Amid Concerns
NERC Calls for Reassessment of NBET License Renewal Amid Concerns....KINDLY READ THE FULL STORY HERE▶
The Nigerian Electricity Regulatory Commission (NERC) has ordered the Nigerian Bulk Electricity Trading (NBET) to submit additional documentation for its license renewal. This decision follows a public hearing held in Abuja, where NERC expressed dissatisfaction with the presentation made by NBET’s Acting Managing Director, Mr. Johnson Akinawo.
During the closing remarks, NERC’s Commissioner for Legal and Licensing Compliance, Barrister Dafe Akpeneye, highlighted that Akinawo did not sufficiently justify why NBET should receive its license renewal. This license is set to expire on November 21, 2024. Akpeneye emphasized that there would not be another public hearing for NBET, but the commission is allowing a written submission to support the renewal request.
“In making those presentations to us, we expect you to have talked more about the issues,” Akpeneye stated. He underscored the importance of instilling confidence in potential investors, noting that the organization must address various concerns to build trust in its operations.
The commissioner reiterated, “NBET will not have another opportunity for a hearing. You have until November 21 to provide a proper written submission in support of your application.” He added that the commission has yet to make a final decision on the license renewal, stating, “The decision will be taken based on the strength of what you have presented before us.”
In his earlier presentation, Akinawo requested a ten-year renewal for NBET’s license, arguing that the Nigerian Electricity Supply Industry (NESI) is not yet ready for bilateral trading. He emphasized that NBET must remain the supplier of last resort in the electricity market and highlighted pending Power Purchase Agreements that still need to be finalized. Akinawo also expressed skepticism about the ability of the states approved by NERC to establish their own electricity commissions and manage tariff matters effectively.
Responding to these discussions, Mr. Edun Okeke, Managing Director of the Azura – Edo Power Plant, encouraged NERC to consider granting an indefinite license instead of the ten-year limitation proposed by Akinawo. According to Okeke, an indefinite license would enhance investor confidence, particularly among banks.
Making a case for the license renewal, former Market Operator Mr. Edmund Eje stressed that NBET continues to play a critical role in the electricity sector. His insights echoed the importance of maintaining a robust regulatory framework that supports both industry stability and investor assurance.
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