By David Onuoja, Abuja
The issue of performance by the Agencies in the power sector value-chain in Nigeria is becoming overbearing; and the oversight functions of Nigerian Electricity Regulatory Commission (NERC), to ensure Distribution Companies (DisCos), Transmission Company of Nigeria (TCN), among other agencies in the electricity-market is something that must not be overlooked.
The blame game between the Nigerian NERC, DisCos, and TCN, has been ongoing, with each party pointing fingers at the other for the country’s poor power supply. However, it’s essential to examine NERC’s role and progress in regulating Nigeria’s power sector.
NERC have obligatory right to enforce its law guiding electricity in Nigeria. The Electricity act of 2023 in section 31:1, as repealed have given Nigerian Electricity Regulatory Commission powers to make and enforce the rules, regulations and guidelines for electricity distribution companies, and other agencies in the sector including electricity users in the Country.
In this regard, NERC has made significant strides in establishing a robust regulatory framework, including technical standards, operating codes, and consumer rights protection guidelines. The commission has also licensed various power sector operators and regulates tariffs to ensure fair pricing for consumers. Additionally, NERC has implemented measures to protect consumer rights, including complaint handling mechanisms and dispute resolution processes.
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Despite these efforts, NERC faced a lot of challenges, including political interference and allegations of regulatory capture. The commission’s independence and effectiveness have been impacted, hindering its ability to effectively regulate the power sector.
According to the electricity act of 2023 as amended, it is the duty of DisCos to serve its customers with meters, transformers, poles and service wires among other things. But what Nigerians witnessed on daily basis is the opposite.
The worst part of the situation, are the complaints by the customers against DisCos, that when ever they demanded for meters which is the primary responsibility of the DisCos to metered their customers, their demand will not yield any result. The same thing applies to the issue of transformers among other things. DisCos does not spend money and invest in the sector but engaged themselves in collections only.
There is a belief that Nigeria is a country where many means of energy generation are available for the development of the country but this beliefs are however shattered by the underperformance of those involved, thereby, dashed the hope of energy in Nigeria due to the blame game over the years.
To buttress this fact, the disputes between NERC, TCN, and DisCos are multifaceted, involving issues like tariff hikes, load rejection, and equipment protection. NERC has launched investigations and imposed fines on DisCos for non-compliance with regulations. However, the blame game continues, with TCN insisting that DisCos should be capitalized to improve their infrastructure.
Critics argued that NERC has endured weak leadership, but a closer examination reveals that the commission has guided Nigeria from a government-controlled electricity system to a privatized market. It also established tariff structures, licensing frameworks, customer protection rules, and compliance mechanisms still in use today.
To improve Nigeria’s power supply, NERC must continue to ensure regulations are carried out and obeyed by all parties. The Commission should leverage on technology, automation, real-time data, digital complaint systems, and market intelligence tools to enhance its regulatory oversight.
Ultimately, addressing Nigeria’s power sector challenges requires a collaborative effort from all stakeholders, including NERC, TCN, DisCos, and consumers. By working together and acknowledging the progress made, Nigeria can overcome its power supply woes and achieve energy sufficiency.
Here are some of the NERC’s notable achievements which includes: Establishing a robust regulatory framework, licensing power sector operators and regulating tariffs, implementing consumer protection measures, promoting renewable energy adoption and decentralizing electricity regulation and empowering states; just like it has started doing.
However, NERC’s efforts to address the power sector’s challenges are crucial to improving Nigeria’s energy landscape. With the continued support and collaboration of all stakeholders, the Commission can overcome the existing hurdles and ensure a reliable, affordable, and sustainable power supply for Nigerians.
