By Benson Daniel
Electricity regulators across Nigeria are moving to strengthen coordination between federal and state authorities as the country’s power market undergoes major structural changes and new regulatory responsibilities emerge at the state level.
The Forum of Nigerian Electricity Regulators, which brings together the Nigerian Electricity Regulatory Commission and State Electricity Regulatory Commissions, has agreed to deepen collaboration in an effort to create a more coordinated and responsive electricity market.
The forum’s latest session focused on some of the operational and regulatory challenges emerging from the decentralisation of Nigeria’s electricity industry. Regulators examined areas where differences between federal and state oversight could create gaps, overlaps or uncertainty for electricity operators and consumers.
One of the major concerns discussed was the quality and availability of operational data from electricity distribution companies.
Regulators stressed the need for timely and reliable data at the feeder level to enable them to properly assess the performance of distribution networks. Better data, they noted, would make it easier to determine whether electricity companies are meeting their service obligations and provide regulators with stronger evidence when taking enforcement or policy decisions.
Particular attention was given to Band A electricity supply, where consumers pay higher tariffs in return for a minimum level of daily electricity supply. Regulators said improved monitoring at the state level would be important in verifying the actual performance of distribution companies and protecting consumers from paying for services they do not receive.
Technology is also being considered as part of the solution. The forum examined the potential use of Internet of Things enabled monitoring systems to provide regulators with more accurate information about electricity supply and network performance.
Such systems could improve visibility across the electricity value chain by allowing regulators to monitor operations more closely and identify performance problems as they occur.
The regulators also considered several structural issues affecting the emerging electricity market, including the operations of sub distribution companies, the delineation of electricity assets and disputes relating to market settlements.
Metering was another key area of concern, with regulators looking at ways to accelerate deployment and reduce the reliance on estimated billing.
The continued expansion of state electricity regulation means that clearer rules and stronger cooperation will become increasingly important. As more states establish their own regulatory institutions, differences in policies, procedures and market arrangements could create additional complexity for operators working across jurisdictions.
The forum has therefore adopted its Business Rules to provide a formal framework for its operations and establish a structured platform for cooperation between federal and state regulators.
The framework is expected to support peer learning, knowledge sharing and the alignment of regulatory priorities while allowing regulators to address challenges arising from the changing structure of the electricity market.
For consumers, the ultimate objective is improved service delivery and greater accountability from electricity companies.
Reliable data would allow regulators to establish whether distribution companies are meeting agreed service standards, while stronger monitoring could help identify persistent supply failures and other operational weaknesses.
The reforms also come as Nigeria continues to seek greater private sector investment in electricity generation, distribution and other parts of the power value chain. A more predictable regulatory environment will be important for attracting and retaining such investment.
Regulatory coordination is particularly significant as the electricity market becomes more decentralised. Without clear responsibilities and effective communication between federal and state institutions, operators could face conflicting requirements while consumers may struggle to determine which authority is responsible for resolving particular complaints.
FONER’s latest initiative is aimed at reducing those uncertainties by providing a common platform where regulators can address shared problems and develop more consistent approaches.
The success of the effort will ultimately depend on how effectively the agreed measures translate into stronger monitoring, faster resolution of market disputes, improved metering and more reliable electricity supply.
For a sector facing longstanding infrastructure, financing and operational challenges, closer cooperation between regulators could provide an important foundation for building a more transparent and efficient electricity market.
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