In a bid to establish a Regional Electricity Market (REM) within the Economic Community of West African States (ECOWAS), the ECOWAS Parliament has unanimously approved three draft Community Acts.
The Acts, which were unanimously approved during the ongoing Parliament’s Second Ordinary Session, aimed at developing legal and institutional frameworks for the REM.
They include, Draft Regulation on ECOWAS Regional Electricity Market Levy, Draft Regulation on the Surveillance of ECOWAS Regional Electricity Market and the Draft Directive on the Harmonisation of Criteria for the Granting of Licences and Authorisations to Participate in the ECOWAS Regional Electricity Market.
The first Act establishes a mechanism for financing the activities of the ECOWAS Electricity Regulatory Authority (ERERA), the body responsible for regulating the REM. The levy will be applied to all electricity transactions within the REM.
The Draft Regulation on the Surveillance of ECOWAS Regional Electricity Market establishes a framework for monitoring the REM to ensure fair and efficient operation.
The Act outlines the roles and responsibilities of market participants in the surveillance process and sets out rules for investigating and penalizing market manipulation and insider trading.
Meanwhile, the Draft Directive on the Harmonisation of Criteria for the Granting of Licences and Authorisations to Participate in the ECOWAS Regional Electricity Market establishes a harmonized criteria for granting licenses and authorizations to participate in the REM.
This is expected to help in creating a level playing field for all REM participants and ensure that only qualified entities are able to participate in the market.
The REM is expected to bring a number of benefits to ECOWAS member states, including increased access to electricity, lower electricity prices, and improved reliability of electricity supply.
The Chair of the ECOWAS Parliament’s Committee on Energy and Mines, Hon. Fougou Boukar, stated that the approval of these draft Community Acts is a major milestone in the development of the REM and has the potential to transform the energy sector in ECOWAS and bring significant benefits to our citizens.
In the same vein, Chair of the ECOWAS Parliament’s Committee on Industry and Private Sector, Hon. Mamadou Sako, explained that the REM will help to reduce our reliance on imported fossil fuels and promote the use of renewable energy sources.
The REM will contribute to a more sustainable and environmentally friendly energy future for ECOWAS”, he added.
The draft Community Acts would be submitted to the ECOWAS Council of Ministers for approval.
If approved by the Council, they become law and will pave the way for the full implementation of the REM.
The ECOWAS region is currently characterized by fragmented electricity markets, with limited cross-border trade in electricity. This has led to high electricity prices, unreliable supply, and limited access to electricity for many citizens. The REM is aimed at addressing these challenges by creating a single, integrated electricity market for the region.
The REM is expected to be implemented in phases, with the first phase focusing on the interconnection of national electricity grids.
The second phase will focus on the harmonization of market rules and the establishment of a regional power trading platform.
Source: The Guardian Nigeria
