Parrot Reporters
No Result
View All Result
  • Home
  • Top Stories
  • News
  • Politics
  • Business
  • Economy
  • World News
  • Diaspora
  • Other Features
    • Crime
    • Entertainment
    • Tourism
    • Interviews
    • Editorials
    • Opinion
Parrot Reporters

DISCOS Can Now Buy Power Directly From GENCOS – NERC

Reporter by Reporter
August 11, 2024
0
DISCOS Can Now Buy Power Directly From GENCOS – NERC
Share on FacebookShare on TwitterShare on Whatsapp

The Nigerian Electricity Regulatory Commission (NERC) has terminated the involvement of the Nigerian Bulk Electricity Trading Plc in transactions between distribution companies and power producers concerning the purchase of electricity.

In its new order on the Transition of Bilateral Trading in the Nigerian Electricity Supply Industry released on Friday, NERC stated that distribution companies (Discos) can now purchase electricity directly from generation companies (Gencos) without NBET acting as an intermediary.

Advantages of the above policy;-

-Electricity generation and distribution will now become more predictable

-Removing NBET( as the government owned intermediary) , will help inject the needed liquidity at the generation and distribution end.

Minister of Power, Adelabu

It will limit government fiscal exposure ( Save FG some money ).

Foster a competitive market by moving away from a sole bulk electricity trader in NESI which may eventually bring prices down

Allow GenCos with “take-and-pay” contracts to trade directly with DisCos which will increase efficiency at the distribution end as discos will be forced to either pay for a “minimum volume of electricity generation” or leave it.

It will also help improve efficiency in the transmission of electricity.

Helps move towards “take-or-pay” contracts for predictability and market discipline.

Bilateral trading contracts agreement for electricity :-

Take and pay :- Discos pay for power generation upfront.

Take or pay:- Discos will still be obligated to pay for power generation even if it cannot accept it or distribute it.

More News...

Asiwaju Deserves Our Support as Nigerians — NOA on the Focus

Asiwaju Deserves Our Support as Nigerians — NOA on the Focus

Ekiti, Oct 27: Date with destiny!

Ekiti, Oct 27: Date with destiny!

The Dangote Refinery: Nigeria’s Gateway to the Future

The Dangote Refinery: Nigeria’s Gateway to the Future

BREAKING: Senate Confirms Professor Joash Amupitan As INEC Chairman

BREAKING! BAYELSA GOVERNOR, DOUYE DIRI, 23 LAWMAKERS DUMP PDP FOR APC

BREAKING! BAYELSA GOVERNOR, DOUYE DIRI, 23 LAWMAKERS DUMP PDP FOR APC

ENUGU GOVERNOR, PETER MBAH DECAMPS TO APC, CITES ALIGNMENT WITH PRESIDENT TINUBU’S VISION OF NATIONAL REFORMS

ENUGU GOVERNOR, PETER MBAH DECAMPS TO APC, CITES ALIGNMENT WITH PRESIDENT TINUBU’S VISION OF NATIONAL REFORMS

Osun: A cause for concern! By abiodun KOMOLAFE

Osun: A cause for concern! By abiodun KOMOLAFE

Igbomoku, The Forbidden Village That Could Redefine Cultural Tourism in Nigeria

Igbomoku, The Forbidden Village That Could Redefine Cultural Tourism in Nigeria

About Us

Parrot Reporters is an independent and non-partisan news platform with special focus on Nigerians in Diaspora cum news within and outside the shore of Nigeria.


Our aim is to celebrate the exploits of Nigerians in diaspora particularly in Southern Africa and other parts of the world.

Categories

  • Business
  • Comic
  • Cover Stories
  • Crime
  • Economy
  • Editorials
  • Entertainment
  • Health
  • Interviews
  • Nigerians In Diaspora
  • Opinion
  • Other News
  • Politics
  • Sports
  • Tourism
  • Videos
  • World News

Follow Us

COPYRIGHT © Parrot Reporters
No Result
View All Result
  • Browse
    • Sports

© Parrot Reporters

 

Loading Comments...