The Nigerian Electricity Regulatory Commission (NERC) has directed the Nigerian Bulk Electricity Trading (NBET) to make another submission for its license renewal.
In his closing remarks at the Public Hearing for the license renewal in Abuja, NERC Commissioner Legal and Licensing Compliance, Barrister Dafe Akpeneye, expressed dissatisfaction with the presentation the NBET Acting Managing Director, Mr. Johnson Akinawo made for renewal.
According to the commissioner, the NBET boss failed to justify the issues that qualify the organisation for the renewal of its license, which expires on November 21, 2024.
Akpeneye insisted that NBET will not have the opportunity for another public hearing, although the NERC will give it the window to make a written submission justifying the request for a license renewal.
He said: “But in making those presentation to us we expect you have talk more about the issues.
“There are issues you need to give to raise level of confidence. Even somebody will walk out of this room and will make investment based on what you said because you are setting a trajectory of what is happening in the horizon.
“NBET has the opportunity to make a … We are not going to have a hearing for NBET. NEBT know why. When does your license expire. November 21st.
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“So, we can’t start doing this anymore. So you have the opportunity to make a proper written submission in support of your application.
“The commission hasn’t made up its mind on which way to go. “But on the basis of the strength of what you have presented before us, the decision will be taken.”
In his presentation, Akinawo urged the commission to renew NBET license by 10 years.
He said the Nigerian Electricity Supply Industry (NESI) is not ripe for bilateral trade.
He said NBET can still function as the supplier of last resort in the electricity market.
According to him, there are still some Power Purchase Agreements that NBET needs to conclude.
He doubted the ability of the States that NERC have given approval to establish their own electricity commissions to cope with tariff matters.
Responding, the Azura – Edo Power Plant, Managing Director, Mr. Edun Okeke urged the commission to renew the NBET license.
He said there is not need to limit the license to 10 years as Akinawo requested.
According to him, an indefinite license will boost investors and banks’ confidence that the one limited to 10 years.
Making case for the license renewal, the former Market Operator, Mr. Edmund Eje said NBET still has a substantial role to play in the industry.