NERC establishes dispute resolution mechanism for NESI

By Etuka Sunday

Nigerian Electricity Regulatory Commission (NERC) yesterday announced it has established a mechanism for the settlement of disputes in the Nigerian Electricity Supply Industry (NESI).

 This it said was to enhanced steady state operations in a contracts- and rules-based electricity trading market.

A statement by the Head, Public Affairs Department, Dr. Usman Abba Arabi said  the Commission had earlier this year appointed Dr. Mamman Lawan, an academic from the Bayero University, Kano, to serve as a Dispute Resolution Counsellor (DRC) for the industry.

 The statement said, “One of the DRC’s key responsibilities, under the Electricity Market Rules, is to advise the Nigerian Electricity Regulatory Commission (NERC) on the appointment of members of the

Dispute Resolution Panel (DRP); and thereafter, to assign members of the DRP to undertake the resolution of such disputes that may arise from time to time amongst Market Participants in the NESI.

 “Thus, in accordance with the Electricity Market Rules, Dr. Lawan recently nominated to the Commission 20 individuals who had gone through an application and vetting process, for appointment to the DRP.

“Following due consideration, the Commission approved the appointment of 12 persons out of this 20, to constitute the Nigerian Electricity Supply Industry’s very first Dispute Resolution Panel.

“These persons are all professionals, most of whom also have alternative dispute resolution qualifications and experience.

They include engineers, economists and legal practitioners, namely Nnenna Ahakannah, Ejekam Nnenna, Adeyemi Oyedele, Hussani Mohammed, Boma Ozobia, Adeyemi Akinsanya, Tamuno George, Sadiku Folorunsho, Olufunmi Roberts, Okechuckwu Joseph Chiazor, Ezekiel Osarieme and Augustine Mamadu,” it said.

“As required by the Market Rules, the DRP shall have responsibility for the resolution of disputes that arise out of the operations of the Market Rules and the Grid Code between and amongst Market Participants in the NESI.

These Market Participants are specifically the Distribution Companies (Discos), Generating Companies (Gencos), the System Operator, the Market Operator and the Transmission Service Provider.

“All Market Participants are also licensed by NERC to build, operate and maintain facilities for the provision of electricity services of various kinds in Nigeria.

The DRP will also resolve disputes between the Market Operator and any person who has been denied certification by the Market Operator as a Participant in the NESI. “A date for the inauguration of the panel will be announced in due course,” the statement concluded.