THE STATUS OF IMPLEMENTATION OF ERERA S ROADMAP NOVEMBER 2013
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1 THE STATUS OF IMPLEMENTATION OF ERERA S ROADMAP NOVEMBER
2 Outline 1Activities for the establishment of ERERA 2Activities for the Organization of the market 3Current Activities for the Organization of the market 4Next Steps
3 1 Activities carried out for the establishment of ERERA a) Staff recruitment Process completed in February 2013 Assumption of office in June 2013 b) Development of Administrative and Financial Procedures
4 2 Activities for the Organization of the market (1) 2.1 Capacity Building: Technical Assistance NARUC-ERERA-WAGPA: Workshop on regulation of renewable energy 2.2 Regulatory Studies : Studies initiated by ERERA in 2012 have been completed. These are: :The development of a Strategic Plan ; a) The development of a Regional Plan for capacity building; b) The definition of rules for access to eligible clients in the regional network; c) The determination of a transmission tariff methodology for the determination of costs and rates; d) The development of best contractual practices ; and e) Regional Benchmarking.
5 FOURTH MEETING OF OF ERERA CONSULTATIVE COMMITTEES November November 2013, 2013, Kairaba Kairaba Hotel, Hotel, Banjul, Banjul, THE THE GAMBIA GAMBIA 2 Activities for the Organization of the market (2) 2.3 OUTCOMES OF THE REGULATORY STUDIES 1) Visibility on the regulatory tools and mechanisms to implement in the region for market development, especially through the adoption of rules for third party access to the network, a tariff methodology for regional transmission and wheeling, and the drafting of model contract for the exchange of energy. 2) Definition of a clear roadmap for the development of regulation in the coming years ( ) and a plan for capacity building to support national regulators, ministries and WAPP in defining and implementing regulation by ERERA, 3) The deepening of market knowledge and performance of regulators and operators of the region 5
6 2 Activities for the Organization of the market (3) 2.3 OUTCOMES OF THE REGULATORY STUDIES 1. Validation of the studies by the Regulatory Council 2. Adoption of the Directive on the organization of the regional electricity market by ECOWAS Council of Ministers 3. Development of the Regulation on the Regional Regulatory Levy : the process for the adoption by ECOWAS Council of Ministers is on going
7 3 Current Activities for the Organization of the market Approval of WAPP Operational Manual : Review of operational rules for WAPP interconnected networks 2. Approval of Regional Market rules: market design and operational rules
8 NEXT STEPS (1) 1. Adoption by ECOWAS Council of Ministers of the Regulation on the payment of annual regulatory fees on regional electricity cross-border trade 2. Implementation of the five year strategic plan and the studies
9 ERERA S SOURCES OF FUNDS Legal basis: Article 32 of the Regulation C/REG.27/12/07, 15 December, 2007 on the composition, organization, powers and operation of ERERA. Ordinary sources of funds: annual fees, based on electricity cross-border trade of electricity utilities operating under a license, agreement or authorization for cross-border electricity exchanges. All charges and fees shall be collected directly from regional market operators. Extraordinary sources of funds: loans, subsidies from states, public or private, national or international organizations, and gifts and legacies. 9
10 OPERATORS CONTRIBUTIONS DAKAR CONSENSUS As agreed with all the stakeholders at the ECOWAS Energy Experts Meeting held in Dakar in July 2013, the total annual contribution of operators in the electricity sector of ECOWAS member states shall be 30% of the annual budget of ERERA adopted by the Council of Ministers, and shall be allocated as follows: 1. the first portion corresponding to 10% of the annual budget of ERERA shall be equally distributed between ECOWAS Member States concerned and; 2. the second portion equal to 20% of the annual budget of ERERA shall be distributed between the Member States pro rata to the domestic electricity sales to end users in kwh.
11 4. NEXT STEPS (2) Implementation of the Five Year Activity Plan: Key Activities Activity 1: Market Development Activity 2: Regulation Activity 3: Institutional Capacity Building Activity 4: Financing
12 FOURTH MEETING OF OF ERERA CONSULTATIVE COMMITTEES November November 2013, 2013, Kairaba Kairaba Hotel, Hotel, Banjul, Banjul, THE THE GAMBIA GAMBIA HIGHLIGHTS OF THE STRATEGIC PLAN Overall strategic objectives for ERERA have been agreed, to reflect the vision, role and mission. Eight (8) objectives have been developed and prioritized, based on a matrix of emergency and importance. 2. A program for performing the tasks necessary to achieve the most important goals was developed, to cover the period The financing shall rest with the Member States, development partners and finally contributions collected from regional market operations. 12
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17 THANK YOU ECOWAS Regional Electricity Regulatory Authority PMB 76 Accra REPUBLIC OF GHANA
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