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Minister tasks judges on electricity contractual obligations

 The Minister of Power, Chief Adebayo Adelabu yesterday urged judges in the country to appreciate the nuance nature of a regulated electricity market permeated by contractual obligations.

"As we navigate our path towards a more a commercially viable electricity market that is characterised legal and contractual obligations, the imperative to understand the peculiar and nuanced nature of a regulated electricity market becomes even more imperative," he said.

He spoke at the 4th Seminar the Nigerian Electricity Regulatory Commission (NERC) organized for judges in Abuja.

According to him, the seminar is part of the broader vision of the Commission and NJI to engage the members of the judiciary on important developments in the sector.

The minister noted that the judiciary’s pivotal role, through notable pronouncements, contributes significantly to attracting private investment in the power sector.

Adelabu said the Nigerian judiciary has helped NESI with notable pronouncements and the act of the judiciary goes far in attracting private investment in the power sector.

He added that in the financial services industry, "we say that investments will only follow certainty; and there appears to be no greater means of providing certainty than predictable, clear and logical judicial precedent that is dispensed by a competent bench."

The minister further noted that the seminar is a laudable initiative of the Commission geared towards building the capacity of the Nigerian bench towards achieving the desired objective of predictable, clear and logical judicial precedent in matters affecting the power sector.

According to him, notable legislative changes have been the amendment of the Constitution of the Federal Republic of Nigeria with the granting of unfettered powers to sub-nationals to develop electricity markets within their jurisdictions and the Electricity Act 2023 that was assented to by Mr. President in the first month of his administration.

He recalled that the Electricity Act 2023introduces far reaching features that propel market liberalisation, extend regulatory reach, and establish a more coherent policy framework that will mitigate of the operational and systemic risks in NESI.

Speaking, the NERC chairman, Sanusi Garba said the three-day seminar for judges was organized to stimulate discourse on emerging legal issues in the industry.

He said: "The key objectives of the seminar is to stimulate a discourse on emerging legal issues relating to the NESI and to appraise the judiciary of the recent changes in the regulatory landscape.

"We therefore invite Your Lordships and invited guests to very engaging sessions as we work towards eradicating patches of darkness in the society.

“We will start the day with a presentation that maybe described as Electricity 101 and this will be followed over the next two days by presentations on typical industry issues by very distinguished professors, lawyers, investors including the architects of the Electricity Act.

According to him, the reforms of any private sector always require many difficult decisions.

He recalled that a couple of years ago, a Civil right group, commenced a civil rights action against the commission whether owing to its announcement of a new tariff order.

He said the group requested for interpretation on principally whether the commission can increase tariff without a significant increase in supply.

The NERC chairman said the group undermined the fact that there was sufficient consultation prior to the approval of the new rate.