The Federal Government has given Electricity Distribution Companies, DisCos, in Nigeria the nod to buy electricity directly from power generation companies, GenCos.
The Nigerian Electricity Regulatory Commission, NERC, disclosed this in its 2024 Multi-year Tariff Order, MYTO, which was recently issued to the country’s 11 DisCos.
The DisCos are required “to secure adequate bilateral contracts to facilitate a seamless exit from NBET’s vesting contract regime,” it said.
NERC noted that the DisCos can procure electricity directly from GenCos through bilateral contracts.
Ayodele Oni, an energy law expert and partner at Bloomfield Law Practice, speaking on the development, said, “With the just released 2024 Multi-Year Tariff Order for each DisCo, it would appear that DisCos are now generally allowed to procure bilateral power from generation companies, directly.”
“This is in preparation for the transition of the bulk trader, NBET.”
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