overview of recent regulatory developments - erera · fourth (4th) high-level meeting of regional...

FOURTH (4 TH) H IGH-LEVEL MEET ING OF REGIONAL ASSOCIATIONS OF EMERGING MARKETS

3 November 2016 - Mi lan , I t a l y

OVERVIEW OF RECENT REGULATORY DEVELOPMENTS - ERERA

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Prof. Honoré BOGLER Chairman of ERERA




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)

ECOWAS

Economic Community Of West African States

ERERA : Who we are?

ECOWAS REGIONAL ELECTRICITY REGULATORY AUTHORITY (ERERA)

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

A specialized institution of ECOWAS created by the Supplementary Act A/SA.2/1/08 of 18 January 2008 to:




Latest Regulatory Developments

Institutional Development

Development of the regional electricity market

Regional & International cooperation and

presence

Current and next developments




LATEST INSTITUTIONAL DEVELOPMENTS




INSTITUTIONAL DEVELOPMENT

POOL OF EXPERTS HR/ ADMIN & FINANCE

• Economist

Lawyer

Engineer

Communication Officer

IT Officer

• Head of HR/Admin & Finance

Human Resources & Admin Officer

Finance & Account Officer

Chairman

Member

Member

REGULATORY COUNCIL ③

ORGANOGRAM OF ERERA

Consultative Committees Regulators

Operators

• Consumers

G STAFF





End of tenure of the first Regulatory Council Members

Appointment of new Regulatory Council Members

Recruitment based on a transparent and competitive process

supervised by the ECOWAS Commission

Non renewable tenure of 5 years

Chairman : June 2015

Two other members : April 2016

Chairman : April 2016

Two other members : Expected by end 2016

ERERA Regulatory Council




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The Consultative Committee of Regulators

This committee was created in November 2011 and established in

December 2011. The Consultative Committee of Regulators has been

chaired, since November 2013, by the Regulator of Côte d'Ivoire

(ANARE).

The Consultative Committee of Operators

This committee was also created in November 2011 and established in

December 2011. The Consultative Committee of Operators has been

chaired, since November 2013, by CEB (Togo).

Consultative Organs ERERA Regulations provide for the creation of Consultative organs as

regulatory instruments to assist the Regulatory Council in decision-

making.

The chair of these Consultative Committees is likely to change at the

joint meeting 14 & 15 November 2016





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Working Groups To promote its values such as professionalism, transparency and

consultation in its actions and rulemaking process ERERA has set up

Working Groups with the experts of the region especially from National

regulators. Two working groups are now in operation:

The Working Group on Data Collection

This working group was created in 2015 to enable the efficient collection of data of the power sector in ECOWAS Member

States.

The Working Group for ERERA’s Work Programme

This working group was also created in 2015 to promote

consultation on the work programme of ERERA.




LATEST DEVELOPMENT OF THE REGIONAL

ELECTRICITY MARKET




Adopted by the ECOWAS Council of Ministers on the 21st June 2013.

Objective :

Define the general principles ruling the Regional Electricity Market in

the frame of the ECOWAS Energy Protocol.

Provisions:

Market design: Gradual development and establishment of the regional electricity markets in three (3) phases.

Market organisation documents : Market rules and procedures,

Contract templates, tariff methodology, etc…

Structure of National electricity markets: Functional separation of

accounts in terms of Generation, transmission and distribution

functions

Strengthening of National Regulatory Authorities : independent regulatory authority with the powers including market monitoring

and tariffs setting.

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Directive on the Organisation of the Regional Electricity Market




Implementation of the ECOWAS Directive on the organization of

the regional electricity market

o ERERA and WAPP has set up a joint working in view of

follow up of the implementation of the Conditions precedent for Market Phase 1

implementation of the Conditions precedent for Market Phase 1

Assessment of the implementation of the Directive

o ERERA conducted the assessment from March 2015 to

March 2016 in the 15 ECOWAS Member States.

o The report is yet to be submitted to the next Meeting of

the ECOWAS Council of Ministers.

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implementation of the Conditions precedent for Market Phase 1

CONDITIONS PRECEDENT FOR MARKET PHASE 1

RESPONSIBLE FOR IMPLEMENTATION

STATUS/DEADLINE

Appointment of the ICC as SMO for Market Phase 1

WAPP Done

Approved Implementation Plan for ICC to become SMO

WAPP Done

Contract templates approved by ERERA.

WAPP - ERERA In progress /

31 December 2016

The Regional Transmission Tariff Methodology is approved by ERERA

Methodology: ERERA

Done

Pricing Model: WAPP and ERERA

In progress /

31 March 2017

Levies for ERERA and SMO: ERERA and ECOWAS Council

of Ministers 31 December 2016

Approved Market Procedures WAPP - ERERA In progress /

31 December 2016

Market rules for Market Phase 1 have been approved by ERERA

WAPP - ERERA Done

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The WAPP Operations Manual

The Regional Electricity Market Rules o The Regional Market Rules (RMR) is a set of Rules that

governs cross border trading through the WAPP

Interconnected Transmission System.

o The RMR was approved by ERERA Resolution

N°005/ERERA/15 of 18th August 2015.

o Technical policies, draft by WAPP for efficient and effective

operation of the interconnected power systems.

o ERERA has approved the WAPP Operations Manual by

Resolution N°007/ERERA/15 of 29th September 2015

The Transmission Tariff Methodology for WAPP

o ERERA has approved the Tariff Methodology for Regional

Transmission Cost and Tariff by Resolution N°006/ERERA/15 of

18th August 2015.

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LATEST REGIONAL & INTERNATIONAL

COOPERATION




Latest Regulatory Developments

Regional and International cooperation

support to ECOWAS Member States without independent regulatory body

Sensitization of Ministers of energy of member States in the

framework of the assessment of the ECOWAS Directive

Sensitization of national Stakeholders in Guinea Bissau

Cooperation with other Regulators

Cooperation of ERERA with EMRA on the Turkey’s 2015 agenda for G20 :

Working session in Accra in September 2015 with EMRA delegation on the Analysis and compilation of regulatory best practices regarding the

regulatory frameworks for countries in Sub-Saharan Africa to attract private

sector in energy infrastructure

Participation to the ERRA Member to member project : Ad Hoc Consultancy

for Drafting an Administrative Procedures for Regulation (Rules of Practice

and procedures) for ERERA. April – May 2016




CURRENT AND NEXT DEVELOPMENTS




Bilateral Contract Templates

ERERA’s Dispute Resolution Procedures & Enforcement Rules

o First review by the Consultative Committees in April 2016.

o End of Consultation Process at the 8th Consultative Committee

meeting in 14 & 15 November 2016

The Transmission Pricing Model

o through its working group with WAPP, ERERA is doing the follow-up for

the development of a transmission pricing model based on the

approved transmission tariff methodology.

o Draft reviewed by ERERA Consultative Committee in November 2015.

Written comments of Stakeholders in January 2016

o End of Consultation Process at the 8th Consultative Committee

meeting in 14 & 15 November 2016

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Current and Next developments




Market Procedures

o Draft sent in March 2015 by WAPP Secretariat for ERERA approval.

o Will be reviewed by the 8th Consultative Committee meeting in 14 &

15 November 2016

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Current and Next developments

ERERA Rules of Practice and Procedure

o Ongoing Consultation on the Draft Rules of Practice and Procedure

o Final review scheduled for the 8th Consultative Committee meeting in

14 & 15 November 2016

5th ERERA Regional Regulatory Forum

On 16th November 2016 at OUAGA 2000 in Ouagadougou, Burkina

Faso with the theme:

‘Realizing the ECOWAS Regional Electricity Market: Opportunities and Challenges’.

ERERA Forum information on : www.erera.arrec.org




THANK YOU

ECOWAS Regional Electricity Regulatory Authority

PMB 76 Accra REPUBLIC OF GHANA

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