ECOWAS Countries Takes Cue from PHCN Privatisation

21 Nov 2013


 
By Chineme Okafor in Banjul, Gambia

Nigeria’s reform of her electricity industry which include the privatisation of successor generation and distribution companies created from the unbundling of defunct Power Holding Company of Nigeria (PHCN) will serve as a good and fast learning curve for member countries of the Economic Community of West African States (ECOWAS), THISDAY has learnt.


Such level of interest on Nigeria’s electricity privatisation programme by ECOWAS member countries was shown yesterday at the consultative committee meeting of the fourth ECOWAS Regional Electricity Regulatory Authority (ERERA) currently holding in Banjul, capital of The Gambia.


Shortly before going into a closed door session, member countries of ERERA, which comprises electricity regulatory authorities of ECOWAS countries including the Nigerian Electricity Regulatory Commission (NERC) indicated their willingness to learn from Nigeria’s privatisation experience especially in line with their aspirations to foster a competitive regional cross-border trade of electricity.
Discussions on minimum regulatory risk for all stakeholders in the electricity market, best contractual arrangements between operators in member states as well as transparency in cross-border power trade are some of the issues that will dominate proceeding at the forum.


Other issues such as the creation of transparent, predictable, and harmonised regulatory practices in the region to attract capital investments in the electricity sector through sustainable market rules are also to be discussed; NERC’s Commissioner for Government and Consumer Affairs, Dr. Abba Ibrahim, however told THISDAY that Nigeria’s experience on these issues have being acknowledged by members of ERERA who thus look up to her for guidance.
Ibrahim stated on the sidelines of the meeting that Nigeria’s electricity privatisation programme remains peculiar and provides a learning curve for members of ERERA.


He said: “Forums like this enable us to facilitate the integration of our electricity market; ECOWAS has been established specifically to bring together sub-regional market as well as streamlining policies that will lead to this and so it is a very important forum.
“Nigeria is a key player in the economy of the West African region and the earlier we harmonise our policies and regulatory framework, the better it will be for everybody in the region.”


“The country is very peculiar on itself, being the largest in the sub-region; there is so much other countries will learn from the reform taking place in Nigeria power sector especially for the future. Globally, governments have withdrawn or privatised key infrastructure services and with Nigeria being the largest market in the sub-region, definitely it has to take the initiative and carry along other countries in ensuring a competitive electricity market.


“I don’t think this will drag Nigeria’s electricity privatisation efforts backwards but it will create a very fast learning curve for other countries in the region to learn from our experience which NERC will show to participating countries here as one of the key presentations,” Ibrahim stated.


He further noted: “I am happy that market rules have been discussed today for the sub-region, Nigeria has had its own market rules in place for the past three to four years. And so you can see that it is a very interesting development that all other African countries can learn from what we have done and put in place frameworks that will support the regional market as operated by the West African Power Pool (WAPP). It is an opportunity for other countries to learn from us and also for Nigeria to close up gaps in her electricity market.”


The ERERA forum with the theme; “fast-tracking the regional electricity market: the regulatory issues” is expected to examine the place, roles and responsibilities of regional electricity regulator and national regulators in speeding up the establishment of a regional electricity market in West Africa. The 15 ECOWAS member countries are equally in attendance at the forum.

http://www.thisdaylive.com/articles/ecowas-countries-takes-cue-from-phcn-privatisation/164920/