FCCPC, NERC seek unified consumer protection in power sector

Nigeria's emerging state electricity markets face potential investment challenges due to the adoption of differing regulatory standards across the country, the Federal Competition and Consumer Protection Commission (FCCPC) has warned.

The FCCPC is advocating for enhanced collaboration between federal and state electricity regulators. The commission emphasizes the necessity of a harmonized consumer protection framework to both safeguard electricity users and offer certainty for investors operating under the Electricity Act 2023.

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The Electricity Act of 2023 represents one of the most significant reforms of Nigeria’s electricity sector in recent years. Beyond creating new opportunities for investment and improved service delivery, it has fundamentally reshaped our regulatory architecture.

Speaking at a stakeholder engagement in Abuja, FCCPC Executive Vice Chairman and CEO, Mr. Tunji Bello, stressed that consumers should receive equal protection regardless of their location. The meeting included officials from the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), and various state electricity regulatory commissions, reflecting the new landscape created by the Electricity Act 2023, which allows states to establish independent electricity regulatory commissions.

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For the first time, states may establish their own electricity regulatory commissions and regulate intrastate electricity markets in ways that reflect their individual economic and social realities. This creates greater scope for innovation, quicker decision-making, and more responsive regulation. At the same time, it makes cooperation between our institutions more important than ever.

Bello described the Electricity Act 2023 as a significant reform that has reshaped Nigeria's electricity regulatory architecture, opening opportunities for investment and improved service delivery. He highlighted that while states can now regulate intrastate electricity markets based on their specific economic and social realities, this decentralization makes inter-institutional cooperation more critical than ever. "For the first time, states may establish their own electricity regulatory commissions and regulate intrastate electricity markets in ways that reflect their individual economic and social realities. This creates greater scope for innovation, quicker decision-making, and more responsive regulation. At the same time, it makes cooperation between our institutions more important than ever," he stated.

He further noted that consumers are primarily concerned with reliable service and fair billing, not the specific regulatory body handling their complaints. The success of the framework hinges on the seamless collaboration of these institutions. Bello outlined the complementary roles: NERC regulates the industry, NEMSA enforces technical standards, state regulators oversee intrastate markets, and the FCCPC provides economy-wide consumer protection and competition oversight.

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The success of this framework will depend not only on the effectiveness of each regulator, but also on how well we work together. Consumers experience electricity as one system. When supply is interrupted, or a bill appears incorrect, they are not concerned about which regulator has jurisdiction. They simply expect protection, ensuring that our institutions work seamlessly together in our responsibility and not theirs.