The Nigerian Electricity Regulatory Commission (NERC) in exercise of powers conferred on it by section 96 of the Electric Power Sector Reform Act, 2005 (EPSRA) has developed a draft “Business Continuity for the Nigerian Electricity Supply Industry Regulations, 2017” (the draft “Regulations”) to provide business continuity measures for the smooth running of the Nigerian Electricity Supply Industry (NESI).
The draft Regulations are made in furtherance of NERC’s mandate under section 32 of the EPSRA to, “create, promote, and preserve efficient industry and market structures, and ensure the optimal utilization of resources for the provision of electricity services.”
The draft Regulations are intended to be a mechanism for NERC to regularly monitor the operational and financial viability of licensees in the NESI and where necessary, enforce discipline in the NESI to prevent market collapse and instability. It prescribes the approach of performing health-checks to determine the level of optimal performance of the licensees and necessary corrective actions to mitigate occurrence of events that may jeopardize the sustainability of licensees operations and financial health or security of electricity supply.
The draft Regulations upon its approval and issuance by NERC will be applicable to all companies or entities that are licenced and regulated by NERC.