OVERVIEW OF RECENT REGULATORY DEVELOPMENTS IN WEST AFRICA

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1 OVERVIEW OF RECENT REGULATORY DEVELOPMENTS IN WEST AFRICA MAY

2 ERERA : Who we are? ECOWAS REGIONAL ELECTRICITY REGULATORY AUTHORITY (ERERA) A specialized institution of ECOWAS created by the Supplementary Act A/SA.2/1/08 of 18 January 2008 to: regulate the cross-border power exchange among ECOWAS Member States, contribute to setting up a regulatory and economic environment for the development of the regional market, Provide technical assistance and maintain cooperation among national regulatory authorities of ECOWAS member States ECOWAS Economic Community Of West African States A community of 15 West African States (Benin, Burkina Faso, Cabo-Verde, Côte-d Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra-Leone, Togo)

3 Key issues Development of the regional electricity market Development of the Regulatory Information Management System Regional cooperation International cooperation and presence Current and next developments

4 Development of the regional electricity market Benchmarking of the regulatory framework (2013) Focus on 3 core areas viz: o Governance: the framework where decisions of the regulator are made o Regulation content: decisions actually made by the regulator o Tariff setting mechanisms. Result of the benchmarking: a wide discrepancy in the level of development of regulatory framework of the various countries that have a regulatory body Progress: o o In Countries have a separate regulatory body and 5 countries don t have In 2014 only 3 Countries don t have a separate regulatory body ECOWAS Directive on the organization of the regional electricity market Define the general principles ruling the Regional Electricity Market in the frame of the ECOWAS Energy Protocol. It set the principle of gradual and inclusive development of the regional electricity market in a West African Power Pool

5 Development of the regional electricity market Implementation of the ECOWAS Directive on the organization of the regional electricity market Development of Regional Market Rules (RMR) o The final draft of the Regional Market Rules (RMR) was approved by the 5 th Consultative Committees of Regulators and Operators - 12 th May, 2015 o Subject to some prerequisites, ERERA s Regulatory Council will proceed for the approval of the RMR Review of the West African Power Pool Operations Manual by ERERA Main objectives: o Check whether the Policies (directives) of the Manual are coherent with the ultimate goals of the West African Power Pool (WAPP) o Determine whether the Manual is applicable during the first phase of the regional electricity market and Identify the requirements for it applicability o Make recommendations for the effective implementation of the WAPP Operations Manual.

6 Development of the Regulatory Information Management System Definition of Raw data to be collected for the purpose of regional benchmarking and Validation of key Performance Indicators 4 th Consultative Committees Meeting Nov Adoption of the Data Collection Form and Mechanism Establishment of Data Collection Working Group - 5 th Consultative Committees Meeting May Establishment of a Working Group for Consultation on ERERA s Work Programme - 5 th Consultative Committees Meeting May. 2015

7 Regional cooperation support to ECOWAS Member States without independent regulatory body Sensitization workshops for the national Stakeholders of these Countries o o o Organisation of Workshops : ERERA Expertise : From Regulators of ECOWAS Subjects: Introduction to regulation: theory, principles, best practices Status of regulation in West Africa Case Studies (Success and Pitfalls): Regulatory experiences from Countries such as Senegal, Mali, Niger, Ghana, Nigeria, Gambia and Côte d'ivoire Renewal of the successful experience of Guinea and Sierra Leone in 2012/2013 in Guinea Bissau in April 2015 Consultation of Stakeholders through Working Groups : strategy for experience sharing

8 International cooperation and presence Cooperation with other Regulators Participation to the 11 th AFUR Annual Conference and 11th Annual General Assembly of AFUR May 2014 Memorandum of Understanding with the Electricity Market Regulatory Authority of Turkey (EMRA) Sept th ERRA Annual Investment and Regulation Conference and Committee Meetings October 2014 cooperation of ERERA with EMRA on the Turkey s 2015 agenda for G20 : Analysis and compilation of regulatory best practices regarding the regulatory frameworks for countries in Sub-Saharan Africa to attract private sector in energy infrastructure Cooperation with donors The Memorandum of Understanding signed with the Gesellschaft für Internationale Zusammenarbeit (GIZ) for support to the implementation of some activities of ERERA s Strategic Plan. Cooperation with European Union delegation of Ghana under the Financing Agreement No. ROC/FED/23868 between the European Commission (EU) and the Secretariat of the West African Power Pool (WAPP)

9 Current and Next developments Consumers Consultation Development of dispute resolution procedures and rules for the regional power market Development and enforcement of model bilateral contracts for the regional power market Development and enforcement of a transmission tariff methodology for the regional power market Updating of ERERA s Strategic Plan to to fit with ECOWAS vision 2020

10 THANK YOU ECOWAS Regional Electricity Regulatory Authority PMB 76 Accra REPUBLIC OF GHANA

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