In line with the revised transaction timeline for the privatisation of the successor companies created from the Power Holding Company of Nigeria (PHCN), the Bureau of Public Enterprises has released the industry agreements.
They are the draft Power Purchase Agreement (PPA) and the draft Vesting Contract.
According to a statement issued yesterday in Abuja by the BPE Spokesman, Chukwuma Nwokoh, the PPA was executed between power generators and the power off-taker.
The statement explained that presently, the off-taker is the Nigeria Bulk Electricity Trading (NEBT) Plc, which is also known as the Bulk Trader.
The Vesting Contract was executed between the Bulk Trader and the Power Distribution Companies.
“It is a mechanism that is used during the transition period in the electricity industry reform to ensure that the available power is shared equitably among the distribution companies”, the statement said.
Recall that on August 16, 2011, President Goodluck Jonathan approved the pioneer Board of the Bulk Trader and also named Mr. Rumundaka Wonodi as its pioneer chief executive officer.
The minister of finance is the chairman of the Board of NEBT.
The Board of NEBT was inaugurated on Tuesday, August 23, 2011 by the President.
Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) has released the revised version of the Multi-Year Tariff Order (MYTO 2.) The document is said to be available on the website of the electricity regulator.
Nwokoh, however, pointed out that the divestiture strategy for the privatisation of the distribution companies will be built around the MYTO.
MYTO 2 will stipulate the annual investment requirement, allowable operational expenditure, approved rate of return on equity and other allowable expenses for each distribution company.