Electricity: FCCPC Seeks Inter – Agency Collaboration To Promote Fair Competition And Safeguard Consumer Rights

To ensure fair competition and safeguard consumer rights in the nation’s electricity sector, the Federal Competition and Consumer Protection Commission, FCCPC, has called for a robust inter – agency collaboration with regulatory bodies and stakeholders in the industry.

Speaking in Abuja during a Stakeholder Engagement On Consumer Protection and Regulatory Cooperation in Nigeria’s Electricity Sector, the Executive Vice Chairman of FCCPC, Mr Tunji Bello described the sector as key to socio – economic well-being of Nigerians and national development hence the need for the high powered meeting with the stakeholders.

Mr Tunji Bello said for the first time in the history of the country, State Governments may establish their own Electricity Regulatory Commissions and regulate interstate electricity markets in ways that reflects their individual economic and social realities

The Executive Vice Chairman therefore stressed the need for stronger partnership with FCCPC for better service delivery, consumer protection and general public interest.

“Your presence speaks very loud about your willingness to work together to strengthen consumer protection in one of Nigeria’s most important sectors and rhe Electricity Act, 2023 represents one of the most significant reforms of Nigeria’s electricity sector in recent years because beyond creating new opportunities for investment and improved service delivery, it has fundamentally reshaped our regulatory architecture” He said

According to him, for the first time, states may establish their own Electricity Regulatory Commissions and regulate intrastate electricity markets in ways that reflect their individual economic and social realities and this creates greater scope for innovation, quicker decision-making and more responsive regulation and at the same time, it makes cooperation between our institutions more important than ever.

In his words *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. They simply expect protection. Ensuring that our institutions work seamlessly together is our responsibility, not theirs”

“Today’s regulatory environment is increasingly specialised. Sector regulators bring deep technical expertise, while the FCCPC brings economy-wide experience in consumer protection and competition. Within the electricity sector, NERC provides sector-specific regulation, NEMSA enforces technical standards, the State Electricity Regulatory Commissions undertake intrastate regulations and the FCCPC contributes its cross-sector consumer protection mandate”.

*These responsibilities are different, but they are complementary. Our objective is to consult, exchange information, support one another’s lawful actions and ensure that consumers receive timely and effective protection. That is the hallmark of mature regulatory governance and over the past year, the FCCPC has worked closely with NERC, NEMSA and other stakeholders on issues affecting electricity consumers. That experience has consistently shown that the best outcomes come from collaboration, not rivalry; from respecting one another’s mandates, engaging early and coordinating our actions” Mr Tunji Bello stated

“Allow me to illustrate this with two examples. The first demonstrates how early cooperation between regulators can prevent consumer harm. The second shows how coordinated enforcement can secure meaningful consumer redress. Together, they demonstrate that when regulators work together, consumers receive better protection, and when consumers are better protected, confidence in the electricity sector grows to the benefit of consumers, businesses and the wider economy”.

“Consumer protection is often viewed only through the lens of resolving disputes after they arise. In reality, its greatest value lies in preventing problems before they occur, identifying risks early, resolving uncertainty and strengthening public confidence before disputes undermine trust. Success should therefore be measured not only by the number of complaints resolved, but also by the number of complaints prevented”

“This preventive approach informed one of the Commission’s earliest interventions after I assumed office in July 2024. Public concern was growing over the planned replacement of obsolete Unistar prepaid meters used by customers of one of the electricity distribution companies. Replacing obsolete meters is ordinarily a routine technical exercise. However, many consumers feared they would be required to pay for meters that had become obsolete through no fault of their own. Others worried about the possibility of estimated billing or interruptions to electricity supply while the replacement programme was underway. Those concerns were understandable. At its core were the issues of fairness, affordability, continuity of supply and public confidence in the institutions responsible for consumer protection”.

He explained that recognising that unresolved concerns could undermine confidence in both the replacement exercise and the wider regulatory system, the Commission convened a meeting attended by NERC, NEMSA and all electricity distribution companies to ensure that the exercise proceeded fairly and in accordance with the law. The engagement was constructive. Following deliberations, the replacement exercise was suspended pending compliance with applicable regulatory requirements, a position that was endorsed by both NERC and NEMSA.

” The outcome demonstrated that consumers benefit most when regulators work together and coordinate their respective powers towards a common objective and the eventual resolution reflected the requirements of NERC’s Order on the Structured Replacement of Faulty and Obsolete End-user Customer Meters. The Order guaranteed that consumers would not bear the cost of replacing obsolete meters, would not experience interruption of electricity supply during the replacement exercise, and would not be subjected to estimated billing because of delays in implementation”.

Mr Tunji Bello noted that those safeguards reflected the principle that consumers should never be disadvantaged because infrastructure has reached the end of its useful life through no fault of their own.

” Preventing consumer harm is one of the highest aspirations of any regulatory system. Yet, no matter how robust our regulatory framework becomes, disputes will inevitably arise. When they do, consumers must have confidence that the institutions established to protect them will not only hear their complaints but also ensure that lawful decisions are respected and effectively implemented”

‘The obsolete meter intervention illustrates an important principle. The Commission respected NERC’s statutory mandate and recognised its technical expertise. We did not seek to assume the role of the sector regulator. Instead, we acted in a way that supported the existing regulatory framework and strengthened its effectiveness”

“In my view, that is what modern regulatory governance requires. Institutions should understand and respect their respective mandates, communicate openly, support one another in the discharge of their lawful responsibilities, and work together to protect the interests of consumers. Strong regulation is not built on institutional rivalry and it is built on cooperation, mutual respect and a shared commitment to the public interest and as more State Electricity Regulatory Commissions assume responsibility for regulating intrastate electricity markets under the Electricity Act, 2023, close cooperation between our institutions will become increasingly important. Our success should not be judged by how firmly we protect our individual jurisdictions, but by how effectively we work together to serve electricity consumers. Wherever an electricity consumer lives in Nigeria, they should have the same confidence that they will be treated fairly, that complaints will be resolved effectively, and that lawful regulatory decisions will be respected” the FCCPC Boss stressed

“Building trusted electricity markets is not the responsibility of regulators alone. Electricity Distribution Companies and every other participant in the electricity value chain also have important roles to play. When market participants comply promptly with regulatory obligations, resolve complaints fairly and operate transparently, they help build stronger, more competitive and more sustainable electricity markets”

He advised consumers to use the established complaints resolution mechanisms, engage regulatory institutions in good faith, and exercise their rights responsibly while fulfilling their own obligations.

*As we continue to implement the Electricity Act, 2023, my hope is that cooperation becomes our default approach, not something we turn to only when other options have failed. We should strengthen institutional relationships that will outlast individual office holders and build regulatory frameworks that will continue to serve Nigeria for many years to come” He added

Speaking on behalf of Electricity Regulatory Agencies, An Assistant Director and Head, Consumer Protection Department, Nigeria Electricity Regulatory Commission, NERC, Mr Anthony Essien commended FCCPC for the Stakeholders Engagement and promised their readiness to collaborate with the Commission towards achieving its set objectives in the nation’s electricity sector.

Mr Anthony Essien said NERC would continue to ensure proper regulation of the sector in line with the 2023 Electricity Act

Also speaking on behalf of State’s Electricity Regulatory Commissions, the Chairman, Enugu Stare Electricity Regulatory Commission, Mr Chijioke Okonkwo said State Regulatory Commissions would also partner with FCCPC for better service delivery to Nigeria’s Electricity consumers.chijiC

Mr Chijioke Okonkwo called for more measures that would reposition the country’s electricity sector to boost national economic development.