The Federal Government of Nigeria has granted licenses to 17 Independent Electricity Distribution Networks operators, out of which 10 are currently operational, according to the 2022 Market Competition Report released by the Nigeria Electricity Regulatory Commission (NERC) on Tuesday. The report detailed the breakdown of Nigeria’s power distribution segment, highlighting the progress in the sector.
Since the unbundling of the power sector into generation, transmission, and distribution segments in November 2013, 11 successor distribution companies were created and privatized. Despite some consumer complaints, these companies have been serving the country. The recent report revealed the privatization status, stating, “All the 11 successor Discos (distribution companies) have been privatized, and additional private distribution companies have been licensed in specified franchised areas. Out of the 17 Independent Electricity Distribution Networks operators licensed, 10 are operational as of December 2022.”
The NERC emphasized that the Market Competition Report complied with Section 24(2) of the Electric Power Sector Reform Act 2004, which mandates an annual report assessing the potential for competition in the Nigerian Electricity Supply Industry. The report aims to review the level of competition in the Nigerian Electricity Supply Industry, assess progress toward a more competitive market, and provide recommendations for transitioning to a more competitive market, in alignment with Section 26 of the Electric Power Sector Reform Act.
The report’s intended audience includes government officials and institutions, private sector entities, energy economists, engineers, financial and market analysts, potential investors, as well as the general public.
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