While the market of Nigerian Electricity Supply Industry (NESI) is in the "Pre-Transitional" and "Transitional" stage, Nigerian Bulk Electricity Trading Plc, will provide the following services to the NESI.
- Enter into bilateral Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs). The Bulk Trader's PPAs with IPPs will be backed by a payment security package
- Execute PPAs with state owned power generation companies
- Power purchase to be backed by a payment security mechanism
- Execute bilateral Vesting Contracts with the eleven Distribution Companies (DisCos) for the resale of all purchased power except for capacity reserved for Eligible Customers.
- Execute a power sale agreement with Eligible Customers (large consumers such as big industries)
- Procure new capacity on a competitive basis as required
- Assume the forward obligations of PHCN in existing PPAs with IPPs
It is expected that the distribution companies, during the “Transitional Stage” of the market, will develop their credit worthiness and eventually reach a stage where they can procure power on the strength of their operations. At such a point, the bulk trader will cease to procure new capacity.