FG, NASS back complimentary roles for regulators in multi-tier electricity market

The Federal Government of Nigeria and the National Assembly, as part of effective transition to a multi-tier Nigerian Electricity Market, have reiterated their commitment to support the complementary roles of electricity regulators.

Speaking at a workshop themed “Legal, Policy and Regulatory Harmonisation between Federal and State Institutions on the Decentralisation of the Nigerian Electricity Supply Industry (NESI)”, the Special Adviser to the President on Power and Chairman of the Presidential Task Force on Power Sector Reset and Restoration, Mr Rilwan Babalola, described electricity as the foundation for industrialisation, economic competitiveness, job creation and national prosperity as he called on participants to embrace the transition as partners working towards one Nigerian electricity market rather than institutions protecting separate jurisdictions.

He said, “Every major reform creates new opportunities. It also creates new interfaces. As Federal and State institutions assume their respective responsibilities, questions will naturally arise regarding regulatory boundaries, market oversight, technical standards and commercial arrangements. That is not a weakness of the reform. It is the natural consequence of institutional evolution.

“Our responsibility is to ensure that these questions are resolved through dialogue, cooperation and mutual respect. The Electricity Act decentralises aspects of governance. It does not decentralise the physics of electricity. Our networks remain interconnected. Our markets remain interdependent. Our prosperity remains shared. That is why harmonisation is not optional. It is fundamental to preserving one efficient Nigerian electricity market.”

The chairman, Senate Committee on Power, Senator Enyinnaya Abaribe, reaffirmed the Committee’s commitment to an enabling law that permits Federal and State electricity regulators to perform complementary roles.

“Ultimately, the success of decentralisation should not be measured merely by the number of States that established electricity markets or obtained transfer orders. Rather, success should be measured by whether Nigeria achieves a coherent, efficient, bankable and integrated electricity market where federal and State institutions perform complementary rather than competing roles. We therefore require harmonised rules governing the relationship between NERC and State Electricity Regulatory Commissions,” Abaribe said.

The Minister of Power, Joseph Tegbe, and the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr Musiliu Oseni, advised on the need for harmonisation of regulatory and operational activities in the Nigerian Electricity Market (NEM).