i.e Power Holding Company of  Nigeria  (PHCN)  as  well  as,  liberalization  of  the  industry  and  introduction  of competition through private sector participation.

The overall objective of the Government policy as enshrined in the NEPP is to ultimately “establish a long term electricity market structure in Nigeria in which multiple operators provide services on competitive basis to the broadest range of customers”.

To enable the successful realization of this a number of strategic initiatives must be put in place to answer questions such as correct pricing of electricity, transaction relationships (energy flow, payment and settlement for contracted power, purchase agreements e.t.c).  
 
While the coming into effect of MYTO on July 1st, 2008 has addressed the issue of correct  pricing  for  electricity,  there  is  an  urgent  need  to  now  ensure  that  appropriate contractual  arrangements  are  put  in  place,  to  support  the  intended  liberalization  and privatization of the sector.  
 
The Commission has therefore developed a consultation paper on the proposed trading arrangement and financial settlement system for use during the Transition Stage of the Nigerian Electricity Supply Industry.  
 
Accordingly, comments and observations are hereby invited from all stakeholders and members of the public on the Consultation Paper. The Paper can be downloaded from the Commission’s website at
www.nercng.org.
 
 
Notice is hereby given that persons who wish to make observations should send their comments not later than 21st July, 2008 to: