The Federal Government has announced that starting in 2023, electricity transactions will be conducted through an automated energy trading platform by companies that produce, distribute, and transmit electricity as well as gas suppliers and consumers.
The platform, according to the government, would enable an automated and transparent market and act as a system for the conclusion of bilateral energy contracts using pre-written standard contracts.
Additionally, it would facilitate better policy planning and effective resource planning while enhancing network investment coordination and providing guidance for investment decision-making. “It will make sure that a sufficient number of buyers and sellers are effectively linked together, which will make price discovery easier,” he said.
Ewelukwa stated that the Nigerian Electricity Regulatory Commission, the Securities and Exchange Commission, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority were being engaged by NBET on the new initiative.