FCCPC seeks uniform consumer protection as states open electricity markets

Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) is calling for enhanced collaboration among electricity sector regulators to ensure consistent consumer protection and regulatory certainty. This appeal comes as states increasingly decentralize electricity management and establish their own regulatory systems.

According to FCCPC Executive Vice Chairman Tunji Bello, the Electricity Act of 2023 has significantly restructured the sector, granting states the authority to create their own electricity regulatory commissions and oversee intrastate markets. This evolving landscape necessitates greater coordination between the FCCPC, the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), and State Electricity Regulatory Commissions (SERCs).

"Sector regulators bring deep technical expertise, while the FCCPC provides economy-wide experience in consumer protection and competition," Bello stated. "Our objective is to consult, exchange information, support one another’s lawful actions and ensure consumers receive timely and effective protection." He emphasized that consumer protection should encompass preventing harm and building public confidence, not just resolving complaints.

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Sector regulators bring deep technical expertise, while the FCCPC provides economy-wide experience in consumer protection and competition. Our objective is to consult, exchange information, support one another’s lawful actions and ensure consumers receive timely and effective protection. That is the hallmark of mature regulatory governance.

Bello highlighted a recent FCCPC intervention regarding the planned replacement of obsolete Unistar prepaid meters as an example of successful regulatory cooperation. The intervention, which involved NERC, NEMSA, and electricity distribution companies, addressed concerns about potential costs and supply disruptions for consumers while respecting NERC's mandate.

Anthony Essien, Assistant Director at NERC, echoed the need for regulatory convergence. He noted that while decentralized regulation can bring oversight closer to consumers, divergent standards across states could create uncertainty for investors. Harmonized approaches, he believes, will strengthen consumer protection and promote a more predictable operating environment.

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Our objective is to consult, exchange information, support one another’s lawful actions and ensure consumers receive timely and effective protection.