The Impact and Role of the Regulator on Electricity Market Growth and Sustainability in a Developing Economy: The Case of Nigeria
Regulation is imperative, especially in the electricity sector, since electricity is a utility which serves the society with vested public interest. This chapter adopts the exploratory methodology to review the role of the Regulator in ensuring sustainability of the gains of privatisation in a developing country such as Nigeria. The chapter argues that the Regulator can only be efficient and play its critical role, if free from the political interferences from which it suffers currently. Several inhibitors of the regulatory process in the Nigerian power sector are highlighted, along with a review of the emerging functions of a well-versed sector Regulator. The authors take the position that flexibility and incentive-driven methods should be used in regulating the sector to avoid rigid regulation, which may lead to stunted growth (Baumol, Islam Econ Stud 3(2):1–32, 1996).
KeywordsRegulator Sustainable Electricity Nigeria Privatisation NERC Generation Transmission Distribution
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