The Bureau of Public Entreprise (BPE) has released the industry agreements in line with the revised transaction timeline for the privatisation of the successor companies created from the Power Holding Company of Nigeria (PHCN).

This was contained in a statement signed by the BPE spokesman, Mr Chukwuma Nwokoh, in Abuja. The statement said that the industry agreements were the draft Power Purchase Agreement (PPA) and the draft ‘Vesting Contract’. The statement said that the PPA was executed between power generators and the power off-taker.

According to the statement, the off-taker is the Nigeria Bulk Electricity Trading (NEBT) Plc, also known as the Bulk Trader. It said that 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.

It further said that the Nigerian Electricity Regulatory Commission (NERC) had released the revised version of the Multi-Year Tariff Order (MYTO 2.), adding that the document was available on the website of the electricity regulator. The statement pointed out that the divestiture strategy for the privatisation of the distribution companies would be built around the MYTO.

It added that the MYTO 2 would stipulate the annual investment requirement, allowable operational expenditure, approved rate of return on equity and other allowable expenses for each distribution company