Experts Discuss Adjudication And Electricity Act At NERC Seminar
In furtherance of providing updates on the Nigerian Electricity Supply Industry (NESI) to the judiciary, the Nigerian Electricity Regulatory Commission (NERC) brought together experts in the power sector and the legal profession to discuss key issues in the industry, the role of adjudication and the Electricity Act on Tuesday.
The seminar was organized by NERC in collaboration with the National Judicial Institute (NJI) for Justices of the Supreme Court and Court of Appeal in Ikot Ekpene, Akwa Ibom State, and has the theme: ‘Reforms in the Electricity Sector towards Sustainability'.
In a presentation titled: ‘Adjudication towards the growth of the electricity industry in Nigeria’, the facilitator, Prof. Yusuf Ali SAN, said adjudication plays a vital role in the growth of Nigeria’s electricity industry by ensuring contract enforcement, resolving disputes, and maintaining regulatory compliance.
“Addressing the challenges within the electricity sector, through effective adjudication, is crucial for realizing these benefits and ensuring the long-term development and prosperity of Nigeria,” he stated.
Prof. Ali also advocated that electricity should be viewed as an economic service rather than a social service.
In another presentation titled: ‘The Political Economy of Power Sector Reforms in Nigeria’, the facilitator, Ukera Seungwa Emmanuel spoke about the long-term agitation by states for a decentralized electricity market which is a reality with the constitutional amendment and the enactment of the Electricity Act, 2023.
“States that are capable can take advantage of this This will ease the pressure on the national grid especially if states devote more resources to off-grid options.”
To enhance the role of the judiciary in resolving legal issues in the power sector, Mr Ukera said there is a need for the continuous training of judicial officers and members of the legislature.
“This will help them to understand the complexities of the reforms and to address observed or perceived knowledge gaps in the industry across the actors in the reform process,” said the facilitator.
Aigbe Olotu spoke on ‘An Investor’s perspective of the Investment Opportunities/Challenges in the Nigerian Power Sector’, stating that whilst several challenges have hindered the optimum performance of NESI, there are also opportunities available to investors to turn the sector around.”
Mr Olotu said the judiciary has a role to play in fostering investment, stability, and growth by providing legal certainty, protecting investments, and backing regulatory oversights.
He advocated specialized training and continuous education for judges to build their understanding of the complexities of the power sector, the evolving legal and regulatory frameworks, and related legal issues.
The NERC DGM Market Competitions and Rate Division, Abba Terab, in a presentation on ‘Electricity Tariffs in Nigeria’ took the participants through the process of setting tariffs for electricity.
Terab also explained the methodology used for the Multi Year Tariff Order (MYTO). “The MYTO combines generation, transmission and distribution costs to determine end-user tariffs. The inputs to the tariff are load forecast, capacity, fuel costs, CBN debt, investment, levels of losses, customer numbers, as well as operation and maintenance costs.”
