Pursuant to the Electric Power Sector Reform Act 2005 (Section 25 and 68) and NBET’s Bulk Purchase and Resale License issued by the Nigerian Electricity Regulatory Commission (NERC), NBET procures power in bulk from Independent Power Producers (IPPs) and successor Generation Companies (GenCos) of the Power Holding Company of Nigeria (PHCN), for resale to Distribution Companies (DisCos), Eligible Customers or International Customers. NBET purchases electricity from the Generating Companies through Power Purchase Agreements (PPAs) and resells to the Distribution Companies through Vesting Contracts.
The Generating Companies include the generation companies that were created from the unbundling of Power Holding Company of Nigeria (PHCN) - the former vertically integrated government owned monopoly provider of electricity in Nigeria, other generators that are government owned are the plants in the portfolio of the Niger Delta Power Holding Company (NDPHC) funder under the National Integrated Power Project (NIPP) initiative. Finally, there are the Independent Power Project (IPPs) and those owned by the Internal Oil Companies (IOCS): Shell and Agip.
NBET carries out the role of a “Pool” Administrator for the Nigerian Electricity Market, as it continues to conclude PPA’s in its deal pipelines; and expects to transition to full competitive procurement for electricity from all sources of fuel.
The objects of the company as set out in its Memorandum of Association are:
- • To undertake the business of trading in the wholesale electricity market as bulk purchaser and bulk seller of electricity and ancillary services pursuant to the Electric Power Sector Reform Act 2005.
- • To take over the contract management and obligations of the Federal Government of Nigeria under existing Power Purchase Agreements (PPAs).
- • To assume active obligations in the gas sector pursuant to its designated role as the Federal Government of Nigeria’s anchor for gas supply guarantees.
- • To do all such other things as are incidental or may be thought conducive to the attainment of the above objects or any of them.