Annual Report: Enhancing Sustainable Utility Regulation (ENSURE) FY13

The program aims to create a platform for regulators from developing countries to discuss mutual challenges and best practices with their counterparts from the U.S. The program focuses on the energy, water, and telecommunications sectors, leveraging the expertise of U.S. regulators to support international regulatory capacity building. In FY13, the program achieved significant milestones in Nigeria and Tanzania. In Nigeria, NARUC worked with the Nigerian Electricity Regulatory Commission (NERC) to develop a Uniform System of Accounts (USoA), which was approved by NERC and is currently being implemented. NERC also created a mandatory safety and health regulation for the electricity industry and enhanced its commission procedures through increased inter-divisional synergy and inter-agency cohesion. In Tanzania, NARUC launched a bilateral regulatory partnership with the Tanzanian Energy and Water Utilities Regulatory Authority (EWURA) in August 2013. The partnership aims to support accelerating and sustaining broad-based economic growth in the energy sector. The first regulatory partnership exchange between NARUC and EWURA took place in Dar Es Salaam, Tanzania, from August 12-16, 2013, focusing on sharing U.S. expertise in developing support schemes and incentives for renewable energy, reviewing Power Purchase Agreement (PPA) templates, evaluating a regulatory framework for natural gas, and finalizing the Logical Framework for the partnership. NARUC also provided technical assistance to NERC through two long-term consultancies: the Transitional Electricity Market (TEM) and the Uniform System of Accounts (USoA). Additionally, NARUC staff met with NERC and USAID/Nigeria in Lagos to incorporate NERC's 2013 "4 C's" goals into the Partnership workplan. The "4 C's" include capacity, connectivity, clarity, and communications. In Tanzania, NARUC and EWURA co-organized and hosted a three-day introductory Gas-to-Power Workshop in November 2012, which provided an overview of technical, financial, and commercial issues that drive investment in gas-to-power. Two NERC staff participated in extended internships hosted at U.S. commissions, gaining valuable insight into the U.S. experiences on key issues. The program faced challenges in Nigeria, including delays in obtaining terms of references, evaluations, and recommendations on consultant proposals from NERC. However, NARUC will re-circulate the USoA consultancy opportunity next quarter for a more competitive bid. In Tanzania, EWURA faces challenges, including revision of current regulations and development of new regulations and new responsibilities, particularly with the constitutional reform process.