Federal Government Grants Licenses to 17 Independent Electricity Distribution Networks Operators
The Federal Government of Nigeria has issued licenses to 17 Independent Electricity Distribution Networks operators, with 10 of them currently operational, according to the 2022 Market Competition Report released by the Nigeria Electricity Regulatory Commission (NERC) on Tuesday.
This development sheds light on the power distribution segment in Nigeria, which is divided into electricity generation, transmission, and distribution segments.
Back in November 2013, the sector was unbundled into these three segments, leading to the creation of 11 successor distribution companies, which were subsequently privatized.
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While these companies have been providing electricity services to the country since their privatization, there have been complaints from consumers.
In the recently released 2022 Market Competition Report, the NERC affirmed, “All the 11 successor Discos (distribution companies) have been privatized. Ownership and management of the Discos have been transferred to private investors.
An additional private distribution company has been licensed in a specified franchised area. 17 Independent Electricity Distribution Networks’ operators have been licensed, of which 10 are operational as at December 2022.”
The report fulfills the requirements of Section 24(2) of the Electric Power Sector Reform Act 2004, which mandates the commission to prepare an annual report for the minister regarding the potential for competition in the Nigerian Electricity Supply Industry.
It assesses the progress towards transitioning to a more competitive market and provides recommendations for this transition, in accordance with Section 26 of ESPRA.
The report’s audience ranges from government officials, private sector entities, energy economists, engineers, financial and market analysts, potential investors, to general readers, as stated by the commission.
This comprehensive report aims to provide insights and updates on the state of competition within the Nigerian Electricity Supply Industry.
