Experts from the National Regulatory Authorities and power utilities of ECOWAS Member countries have convened in Lome, the capital of Togo, to deliberate on two significant documents aimed at enhancing the functionality of the regional electricity market.
Energy News Africa reports that the documents comprise the draft Directive on the Regional Electricity Market Levy and the draft Regulation on the Surveillance of the ECOWAS Regional Electricity Market.
The gathering, consisting of experts who are part of the Consultative Committees of Regulators and Operators (CCRO) under the ECOWAS Regional Electricity Regulatory Authority (ERERA), commenced its three-day meeting on September 4, 2023. The primary objective is to finalize these documents, which will subsequently be presented to the ECOWAS Ministers of Energy during their upcoming meeting in October 2023.
The draft Directive on the Regional Electricity Market Levy is applicable to all participants within the ECOWAS Regional Electricity Market and encompasses all cross-border electricity transactions within the market. This includes electricity imports and exports among the ECOWAS Member States, as well as access, cross-border interconnection, and the use of the Regional Transmission Network.
This directive is designed to ensure the financial stability and independence of both ERERA and the Regional System Market Operator (SMO). The financial stability and autonomy of these entities are essential for their effective operation and their ability to fulfil their roles concerning the operation and regulation of the Regional Electricity Market.
Among other provisions, the Directive establishes the mechanism for determining the amount of the levy to be paid by market participants and outlines the procedure for levy payments within the market.
The levies collected under this Directive encompass market operation fees, system operation fees, and regulatory fees. Additionally, ERERA may approve other fees proposed by the SMO if deemed necessary for the electricity market’s operation, such as balancing fees and ancillary services fees.