Missions and Functions

HomeAbout ERERAMissions and Functions

Missions
The overall missions of ERERA are to:
• regulate the cross-border power pooling among ECOWAS Member States
• oversee the implementation of the necessary conditions to ensure rationalization and reliability
• contribute to setting up a regulatory and economic environment suitable for the development of the regional market
• oversee compliance with the principle of freedom of electricity transit in accordance with the provisions of Article 7 of the Energy Protocol
• oversee the establishment of a clear, transparent and predictable tariff setting methodology for regional power pooling
• be responsible for the technical regulation of regional power pooling and the monitoring of regional market operations
• assist the ECOWAS Commission in defining the strategic direction of the regional policy and the harmonization of policies, legislations and regulation of national power sectors
• establish effective dispute resolution procedures between regional power market players and control its proper application
• maintain partnership relations with national regulatory authorities in Member States and provide them with technical advice and assistance at their request, and
• ensure proper communication among the various actors in the sector.

Functions

Specific functions with regard to its missions include the following:

1) In regulation and the management of the regional electricity market, ERERA shall:

  1. Advice the ECOWAS commission on all issues relating to the regional policy and structure of the regional market;
  2. Supervise the drafting and approve the rules for the functioning of the regional market and rules for access to the regional power transmission network;
  3. Oversee the application and respect of technical rules and norms applicable to the regional power market;
  4. Sanction defaulting operators in case of non-compliance with applicable regulation.
  5. Ensure the application of community directives on the organization of the regional market;
  6. Approve applications for authorization or licenses to participate in the regional market, proposed by national regulatory authorities;
  7. Supervise, in collaboration with national regulators, the application of the principles of accounts separation and transparency implemented by electricity companies; ERERA shall ensure that these rules, perimeters and principles do not permit any discrimination, cross subsidies or market distortion;
  8. Carry out periodical benchmarking of operators and an assessment of their technical and financial viability.

2) In planning the regional electricity market development, ERERA shall:

  1. Contribute to the optimal management and development of power resources, to the demand side management, to the competitiveness of economic activity and to the control of future choices of technology;
  2. review and give its opinion on the Master Plan proposed by WAPP for the development of regional infrastructure;
  3. approve the selection criteria of operators involved in the development of regional electricity infrastructure, in order to avoid any anti-competitive practices;
  4. be consulted for any request for authorization for construction of additional lines to the regional transmission network, as defined in the master plan;
  5. ensure respect of the regional network development plan and propose solutions in case of deviations that are likely to influence the regional market.

3) In setting transmission and ancillary services tariffs, ERERA shall:

  1. set regulations on accounting rules for tariff structure and cost for transmission and ancillary services;
  2. approve tariff proposals emanating from operators;
  3. publish applicable tariff rates and oversee their application;
  4. revise tariff and accounting rules for transmission costs and ancillary services cost through open consultation with stakeholders;

4) In dispute resolution, ERERA shall

  1. resolve disputes arising from the application or interpretation of this Regulation or any other Act relating to the regional market.
  2. establish and publish rules and procedures for the resolution of disputes.

5) In information and audit, ERERA shall:

  1. organize a data collection and data management system on power pools and the performance of participants in the power sector, in collaboration with national regulators, WAPP, transmission network manager, market operators and other sub-regional and regional institutions;
  2. subject to confidentiality rules, distribute relevant information on market operations to the ECOWAS Commission, national regulators and WAPP;
  3. present an annual activity report to the President of the ECOWAS Commission.