The 11 electricity distribution companies (DisCos) in Nigeria have been given the greenlight by the Federal Government to purchase electricity directly from power generation companies (GenCos) through bilateral contracts.
This development puts an end to the 10-year reign of the Nigerian Bulk Electricity Trading (NBET) which buys electricity in bulk from generation companies through power purchase agreements and sells through vesting contracts to the DisCos.
The National Electricity Regulatory Commission (NERC) in the 2024 Multi-year Tariff Order (MYTO) issued to the DisCos on January 17 said the new order recognises a revision to the DisCos’ partially contracted capacity (PCC) to ensure a minimum energy offtake from January 1.
