FCCPC warns fragmented electricity market rules could deter investment

Nigeria's electricity sector faces potential investment uncertainty due to the fragmented regulatory landscape emerging from the Electricity Act 2023. The Federal Competition and Consumer Protection Commission (FCCPC) has issued a strong warning, advocating for a unified approach to consumer protection and regulatory cooperation.

Executive Vice Chairman of the FCCPC, Tunji Bello, emphasized that the success of the new framework hinges on collaboration, not competition, among regulators. He explained that consumers perceive electricity as a single system, regardless of which agency oversees supply interruptions or billing disputes. This underscores the need for seamless coordination between federal bodies like the Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Electricity Management Services Agency (NEMSA), and newly empowered state electricity regulatory commissions.

Bello highlighted a recent instance where coordinated action led to the suspension of a proposed obsolete prepaid meter replacement. The FCCPC, working with NERC, NEMSA, and distribution companies, ensured consumers would not bear the cost or face supply disruptions during the exercise. This successful collaboration serves as a model for ensuring effective consumer protection and fostering investor confidence as Nigeria navigates its electricity sector reforms.

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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.