NB247

The Chairman of ERERA, Prof. Honore Bogler, has called on stakeholders to help shore up confidence in the ECOWAS Regional Electricity Market and enhance its viability, in line with activities by ERERA and the West African Power Pool (WAPP).

Prof. Bogler made the call while addressing participants at a week-long workshop on the financial sustainability of the Regional Electricity Market which opened on March 28, 2022 in Lomé, the Togolese capital.

The main objective of workshop is to enhance the capacity of stakeholders with regards to key regulatory instruments, strategies and mechanisms that will ensure the financial sustainability of the electricity sector in West Africa.

According to Prof. Bogler, training at the workshop will focus on the December 2018 Directive on the Securitization of Cross-border Power Trade under the Regional Electricity Market and Model bi-lateral Agreements for cross-border power trading.

He called on representatives of Member States to expedite action on ERERA’s requests relating to matters such as the accounting separation of the different segments of activities of the electricity sector as well as the roadmaps designed for Member States on third party access to transmission and distribution networks.

Prof. Bogler decried certain practices that “seriously threaten the vitality and viability of our nascent electricity market” such as the imbalance observed in the bilateral contracts for the purchase and sale of electricity, especially for deliveries beyond the borders, payment defaults of buyers, as well as the failures to deliver the electricity promised by several sellers.

He expressed the hope that the training sessions would provide useful information regarding the measures taken by WAPP and ERERA which are “aimed at restoring confidence in our regional electricity market and guarantee its viability”.

The workshop will highlight the key issues and considerations that work together to ensure the financial sustainability and viability of the electricity supply industry. These include integrated power system planning, cost of service studies, negotiation and drafting of power purchase agreements, revenue assurance strategies, as well as treatment of energy losses in metering systems.Others are securitization, guarantees and subsidies, implication of commercial quality of service and regulation for electricity companies.

Among participants at the workshop are high level representatives of national electricity utilities who are directly involved in investment planning, revenue recovery, power procurement and the negotiation or drafting of power purchase agreements (PPAs) including engineering, legal and financial experts as well as Directors of Energy from ECOWAS Member States.

Leave a Reply

Your email address will not be published. Required fields are marked *