- Wolemi Esan says that NERC has intervention powers for grid stability and public interest protection in terms of electricity supply.
- However, for NERC to validate its powers, it needs to show that it follows due process.
Wolemi Esan, the Deputy Managing Partner at Olaniwun Ajayi LP, has said that Nigeria’s electricity regulator, the Nigerian Electricity Regulatory Commission (NERC) has intervention powers for grid stability.
He said this during a February 20 presentation at the 4th seminar for Judges organised by the Nigerian Electricity Regulatory Commission (NERC) on “Safeguarding the Grid: Exploring NERC’s Intervention Powers Under the Electricity Act” at the National Judicial Institute (NJI) complex in Abuja.
While delivering his speech, Esan said NERC’s intervention powers are paramount for grid stability and public interest protection, and as the power sector evolves, NERC will also need to be creative and embrace innovative tools for its regulations.
Esan highlighted that for NERC’s power to be validated, NERC needs to demonstrate that it follows due process. NERC needs to also demonstrate that there is procedural fairness; this is one of the reasons why administrative procedures are usually set aside in court.
According to Wolemi Esan, there are a number of reasons why a regulator will need to have intervention powers to regulate the power sector, stating further that regulators must have the power to intervene in the sector to protect the overriding public interest.
He said: “In my view, that is the primary reason for having a regulator in the electricity sector. The regulator can also intervene in crisis management in the sector; another reason for having a regulator is the need for grid stability; a regulator would also need to have powers to step in to prevent market failure if there is a threat, and the final reason is that the regulator must have the power to enforce compliance for the sector and not just to set the rules.”