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NERC Report affirms 10 of total 17 licensed power DisCos operational

*The Nigerian Electricity Regulatory Commission releases the 2022 Market Competition Report, which reviewed the level of competition in the Nigerian Electricity Supply Industry, coupled with recommendations for a transition to a more competitive power market in the economy

Isola Moses | ConsumerConnect

The Federal Government has announced that 10 Independent Electricity Distribution Networks operators are currently functional out of the 17 firms it originally issued licences in Nigeria.

ConsumerConnect reports the Nigerian Electricity Regulatory Commission (NERC) noted this in the 2022 Market Competition Report, which the power regulator released Tuesday, October 3, 2023.

The Nigerian Government revealed the development while providing a breakdown of the country’s power distribution segment.

The report indicates the  Nigerian power sector is basically, categorised into the electricity generation, transmission and distribution segments.

It is recalled the government, November 2013, unbundled the electricity sector of the economy into the three segments, 11 successor Distribution Companies  (DisCos) were created and privatised.

The DisCos have been serving the country since 2013 amidst complaints by electricity consumers.

The NERC 2022 Report also stated: “All the 11 successor DisCos (Distribution Companies) have been privatised. Ownership and Management of the DisCos have been transferred to private investors.”

The power regulatory Commission said: “An additional private distribution company has been licensed in a specified franchised area.

“17 Independent Electricity Distribution Networks’ operators have been licenced, of which 10 are operational as of December 2022.

“The regulator explained that the market competition report was prepared in compliance with Section 24(2) of the Electric Power Sector Reform Act 2004, which mandates the commission to prepare an annual report for the Minister as to the potential for competition in the Nigerian Electricity Supply Industry.”

NERC further disclosed that the “report provides a review of the level of competition in the NESI and assesses the progress for a transition to a more competitive market.

The report further provides recommendations for transition to a more competitive market pursuant to Section 26 of ESPRA.

“The report is directed at a wide spectrum of readers including government officials and institutions, private sector, energy economists, engineers, financial and market analysts, potential investors as well as general readers.”

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