Daud Olatunji
The Federal Government has announced the issuance of licenses to 17 Independent Electricity Distribution Networks operators, with 10 of them already operational, as revealed in the recently published 2022 Market Competition Report by the Nigeria Electricity Regulatory Commission (NERC).
In this comprehensive report, the government delved into the intricate details of Nigeria’s power distribution sector, highlighting the progression since the unbundling of the power sector into generation, transmission, and distribution segments in November 2013.
At that time, 11 successor distribution companies emerged, underwent privatization, and have been serving the nation, albeit with ongoing consumer complaints.
However, the NERC’s 2022 report states, “All the 11 successor Discos (distribution companies) have been privatized. Ownership and management of the Discos have been transferred to private investors.
Furthermore, an additional private distribution company has been granted a license for a specific franchised area.
As of December 2022, there are now 17 Independent Electricity Distribution Networks operators, with 10 actively serving the nation.”
The release of this market competition report is in accordance with Section 24(2) of the Electric Power Sector Reform Act 2004, mandating the NERC to compile an annual report for the minister, assessing the potential for competition in the Nigerian Electricity Supply Industry.
The report reviews the level of competition in the Nigerian Electricity Supply Industry and evaluates progress toward a more competitive market.
It also offers recommendations for transitioning to a more competitive market, as outlined in Section 26 of the ESPRA.
The NERC emphasizes that this report is intended for a diverse audience, including government officials, private sector stakeholders, energy experts, financial and market analysts, potential investors, and the general public.
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