Helmke Sartorius von Bach | Jul 1, 2020 | 0
Let us agree on electricity
The Memorandum of Agreement establishes a framework that will enable both parties to promote and maintain fair competition and a stable environment within the electricity sector, to promote the development of competitive markets in the electricity industry, and finally to promote co-operation and co-ordination between the ECB and the NaCC when dealing with cases of anti-competitive behaviour.
The agreement also addresses an appropriate response to mergers and acquisitions within the electricity industry. On an operational level, it mandates the two institutions to undertake joint investigations and to conduct market enquires or research studies as required. The agreement also serves to improve understanding of the parties’ respective roles by making provision for general studies on the effectiveness of competition within the electricity industry.
According to Sisheo Simasiku, CEO of the ECB, the two parties signed this agreement to coordinate and harmonise the exercise of their jurisdictions over matters of mutual interest and to secure the consistent application of their respective laws governing anti-competitive behaviour. He said the agreement also governs mergers and acquisitions in the electricity industry on the basis of outlined procedures.
“A lot of trading has been identified [in] the electricity industry. With the signing of this agreement there will be no monopoly in the electricity industry and the buyer can choose where they want to buy their electricity from and not only from Nampower,” he said.
CEO of the NaCC, Mihe Gaomab II said it is significant that the MoA is signed at a time when the ECB is undergoing a transformation that will see it transforming into a multi-sectoral energy regulator that will not only oversee electricity but also gas and renewable energy.
“The signing of this MoA will commit the two authorities to work together closely towards a common goal in the pursuit of perfect competition within the electricity sector. You recognise the important role that competition has to play towards the development of our economy. Competition is desirable as it leads to cost efficiency, low prices and innovation,” he said.