ELECTRICITY: NERC EXPANDS ACCOUNTABILITY CHARTER WITH CONSUMER ACTIVISM

to the consumers, the operators have a greater share of voice and are better positioned to protect their interests and shape outcome in the post-privatisation electricity market in Nigeria,” Amadi explained when he spoke of the need for a consumer advocacy network in the industry.

He noted that whilst the reform document was designed to benefit consumers through a regulatory regime that guarantees and protects their access to adequate, safe, reliable and affordable electricity, the absence of democratic processes in the sector has ironically pushed these benefits backwards.

He however added that such deficit will have to be cured by redefining and redesigning processes in the sector to fairly accommodate disempowered stakeholder and provide for them a platform to negotiate for better bargains in electricity service delivery.

“The democracy deficit in the emergent electricity market in Nigeria post privatisation is the possibility of the loss of consumer voice in crafting the bargains that will define access and security of electricity supply in Nigeria,” said Amadi.

He further stated that: “These bargains may take the form of technical, regulatory or financial arrangements for supply of electrical services in Nigeria. The Market Rules, as presently designed, have empowered the operators of the Nigerian electricity market by giving them a ring-side ticket to all the governance institutions in the market.

They have opportunity and resources to shape rules and decisions to their advantage. The consumers are not on the ring-side and are only to be affected by the decision. This asymmetry does not protect the balance of power in the electricity market, which the regulator is to promote. Asymmetry of power also undermines the transparency and accountability that underline a fairly regulated electricity market.”

To cure this democratic deficit, NERC noted the emergence of strong arguments for the blending of consumers into the decision makers of the electricity market with the establishment of a formal body, the Nigerian Electricity Consumer Advocacy Network (NECAN), using its convening powers.

NECAN last week was inaugurated by NERC to easily build technical and political capability to effectively contend against other organised interests in the electricity market.

As an organised consumer advocacy group expected to be initiated by NERC, NECAN will not just focus on challenging operators in tariff setting and such other commercial activities like metering and billing, it is however expected step up as a major contributor to big and trending debates around smart grid construction, clean energy, privatisation and modernisation of the electricity grid as well as the constitutional framework for energy policy in Nigeria.

And saddled with responsibilities that include design of a structured platform for electricity consumers to gain insight and constructively engage in decisions that are made in the sector, as well as improve the voice, bargaining power and activity of electricity consumers as critical stakeholders in the regulatory process, NECAN is equally primed to upgrade the capacity of electricity consumers to make informed and fact-based contributions to consultative and deliberative aspects of decision-making in the sector.

The advocacy network will also seek to drastically cut down the possibilities for conflicts in the sector by ensuring greater understanding and proactive engagement between operators and consumers. Pushing for transparency and accountability in the operations of the electricity sector will also fall under the purview of NECAN.

For ease of operation, NECAN will comprise members fromgeographical and professional clusters of electricity consumers and will be independent of both NERC and the operators. And even though NERC is expected to provide minimal financial grant to offset its operation in the first two years, it is expected to become completely independent with time. Strategic decisions lead strategic actions In proposing and setting up NECAN, NERC from its body language seeks to enthrone a democratic process of making and implementing decisions in the country’s liberalised electricity market, and not to create a resentment in relationships between stakeholders in the sector.

This message however must not be lost to members of NECAN. As an institutionalised consumer advocacy group, NECAN should by all means seek to adopt strategic and not impulsive positions in its relationship with the sector.

In addition to attractive and quick-win issues like tariff and metering, NECAN ought to take robust interest on some of the current transitional issues in the electricity market; the transition to private sector led electricity market is almost complete, yet gas and hydro continue to account for majority of both base load and peak needs in the country, NECAN can on this, study, adopt and initiate a conversation on the government’s attempts to diversify the country’s electricity supply mix to include nuclear power plants and other alternatives.

NERC has also licensed independent power plants to generate power from renewable sources especially solar energy to offer both supply and flexibility and in the near future, this modular power will be embedded into the distribution system to overcome the present transmission constraints, NECAN can as well further discussions on this, especially with regards to its impacts on consumers.

The regulator has also intervened to correct the imbalance in the supply and demand end of the market with its recent decision to have operators consult directly and intensely with consumers on electricity tariffs review.

This development puts before NECAN a challenge that can only become meaningful to consumers when they match the capacity and knowledge power of operators to dominate and solely determine outcomes in their deliberations

Notwithstanding that the advocacy group may have disclosed its initial priorities with its decision to challenge the recent tariff reviewed by the regulator at its inaugural meeting with the press, it must however appreciate that deliberations on such issues like tariff review will not be a tea party or emotional affair but rather a rational engagement that requires all parties to be at alert.

Also, possible capture of the advocacy group by operators and professional agitators, disconnect from the real electricity consumers, lack of capacity to undertake ground-breaking work, diversion and embezzlement of funds as well as internal dispute in or fracturing of the network amongst others have also been identified as some the risks that must be mitigated against by NECAN for the materialisation of its expected mandates.