14 October 2014, Abuja – After series of postponements, all is now set for the Federal Government to declare the Transitional Electricity Market, which will mark the commencement of full competition in the industry.
One significant change under the new arrangement is that participants in the market will commence full trading by contracts. During this stage of the market, institutional and normative structures of a competitive and efficient electricity market will be put in place.
The Nigerian Electricity Regulatory Commission said it had successfully satisfied all the conditions precedent for the commencement of the TEM as prescribed by the electricity market rules.
The declaration of the TEM had been postponed last year due to the fact that certain conditions had not been met and it was slated to commence on March 1, 2014. It, however, did not commence on that date.
But speaking in Abuja on Monday during the inauguration of members of the Dispute Resolution Panel of the Nigerian Electricity Supply Industry, the Chairman, NERC, Dr. Sam Amadi, said, “By today’s event, we have met the last condition precedent for the commencement of the TEM as prescribed by the market rules.
“Now that we have completed the last of the formal conditions precedent and we are effectively handling the informal conditions precedent, NERC is poised to recommend to the Minister of Power to declare the commencement of the TEM at a named date.”
In 2011, NERC established an industry wide Transition Steering Group to manage the efforts of stakeholders in the power sector to achieve the conditions precedent for the commencement of the TEM.
The Electric Power Sector Reform Act, 2005 prescribes that the market will enter into a transitional stage before the beginning of full competitive electricity market.
– The Punch