The Nigerian Electricity Regulatory Commission (NERC) yesterday requested the Muhammadu Buhari-led Federal Government to advise it on the relevance of the creation of another electricity regulatory body that duplicates the functions of the commission.
Its Chairman, Dr. Sam Amadi told reporters in Abuja that “the act is clear on what we should do and that is what we are doing. A new government is in power and they have to advise us on what to do.
“We are an independent commission under government. So at the end of the day, I expect that government will look at the law and take a position.”
There has been a heated debate and opposition from the commission that the last administration shouldn’t have established the Electricity Management Service Limited (EMS) even before the last Federal Government legally instituted the Nigerian Electricity Management Services Authority.
Amadi said that even if the new government eventually allows EMS to function, it would not hinder NERC from performing its technical and commercial regulatory roles as enshrined in the act.
The chairman noted that not only did the commission write a letter to the immediate past President to oppose the creation of EMS, it also opposed it vehemently in the National Assembly.
Now that a new government is in power, he said, the commission will adhere to whatever directive it receives on the issue even as there is no justification for instituting EMS.
Amadi said: “But it is on record, NERC opposed it at the National Assembly in a heated debate. We wrote to the President why and we stated clearly and I believe till today there is no justification for that. It is law so we will wait for the new government to tell us what to do. Whatever the government tells us, we will do.”
He confirmed his awareness of the EMS but insisted that although the law has been assigned, it has not become operational, thus the new government should review the situation and address the two agencies accordingly.
His words: “All over the world, we know clearly that it is wrong to have double regulations, especially when a regulator does its job.
“Like we say in law, you are an interested party. The law has been assigned but the law has not been operationalized. It is for government to review and address parties accordingly.”
According to him, prior to the existence of the NERC, the National Electric Power Policy of 2000 stipulated that there shall be one regulatory body for the power sector.
He also said that in its electioneering campaign, the present government vowed to recognize only one regulatory body, noting that when Ghana opted for two electricity regulatory bodies it was chaotic for the country.
He said: “Even before NERC was there, it clearly stipulated that there will be one regulator doing technical and commercial regulations. We see example in Ghana, where attempt was made to divide that jurisdiction and it ended in chaos.”
The chairman maintained that inspection is clearly linked in the act with the work of the regulator, stressing that the act allows the regulator to appoint inspectors.
According to him, there is a conceptual link between technical and commercial regulation because it is the product of technical regulation that feeds into economic regulation.
He added that in setting commercial review in tariff, NERC relies on the data it gets from technical inspection, be it network, grid, health and safety code inspection.
He argued there is no lack of technical regulatory framework in the NERC, stressing that one of the arguments about technical regulation in the commission is that of technical inspection.
Amadi added that the grid code has been signed into the rule, the stream code is also there alongside the metering code.