Securing payment for cross-border power trade in West Africa

In December 2018 the ECOWAS Council of Ministers adopted a directive, in force on signature, after noting that cross-border trade had in some cases led to substantial payment arrears and government intervention to clear them. It asks finance ministries for escrow accounts with payment waterfalls and payment guarantees, and asks ERERA and WAPP for a contract template that sanctions non-payment through graduated disconnection and includes commercial bank guarantees backed by multilateral guarantees. Member states were to adopt the national provisions by 1 January 2020.

• Directive C/DIR/2/12/18, Article 7(i) (entry into force) · Dec 2018
  "This Directive shall enter into force on the date of its signature by the Chairperson of the Council of Ministers and shall be published in the Official Journal of the Community within thirty (30) days of its signature." source"This Directive shall enter into force on the date of its signature by the Chairperson of the Council of Ministers and shall be published in the Official Journal of the Community within thirty (30) days of its signature."Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.10 (OCR) · Dec 2018not yet checked by a person
  Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.10 (OCR) · not yet checked by a person
• Directive C/DIR/2/12/18, preamble
  "NOTING that cross-border electricity trade among WAPP member utilities has led, in some cases, to accumulations of substantial payment arrears to electricity suppliers, resulting in Governments' intervention for clearance of their debt arrears;" source"NOTING that cross-border electricity trade among WAPP member utilities has led, in some cases, to accumulations of substantial payment arrears to electricity suppliers, resulting in Governments' intervention for clearance of their debt arrears;"Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.3 (OCR)not yet checked by a person
  Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.3 (OCR) · not yet checked by a person
• Directive C/DIR/2/12/18, Article 5(a) (Ministries in charge of Economy and Finance)
  "adopting escrow accounts that ring-fence utility revenues, accompanied with ‘cascade or waterfall’ payment mechanisms that clarify the priority of payment of electricity creditors in situations of cash shortfall" source"adopting escrow accounts that ring-fence utility revenues, accompanied with ‘cascade or waterfall’ payment mechanisms that clarify the priority of payment of electricity creditors in situations of cash shortfall"Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.7 (OCR; item numerals garbled in the scan)not yet checked by a person
  Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.7 (OCR; item numerals garbled in the scan) · not yet checked by a person
• Directive C/DIR/2/12/18, Article 5(a) (Ministries in charge of Economy and Finance)
  "introducing mechanism of payments guarantees with the involvement of the Technical and Financial Partners (TFP) for the benefit of the electricity supplier;" source"introducing mechanism of payments guarantees with the involvement of the Technical and Financial Partners (TFP) for the benefit of the electricity supplier;"Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.7 (OCR; item numerals garbled in the scan)not yet checked by a person
  Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.7 (OCR; item numerals garbled in the scan) · not yet checked by a person
• Directive C/DIR/2/12/18, Article 5(e)(i) (ERERA and WAPP)
  "providing and enforcing a contractual template for the bilateral exchange of electricity between Member States that defines the conditions of power supply (firm, semi-firm or interruptible), incorporates suitable measures for sanctioning non-payment (through graduated disconnection) as well as non-delivery (through financial penalties that compensate the importer for back-up generation), and includes standard commercial bank guarantees backed-up by multilateral guarantees;" source"providing and enforcing a contractual template for the bilateral exchange of electricity between Member States that defines the conditions of power supply (firm, semi-firm or interruptible), incorporates suitable measures for sanctioning non-payment (through graduated disconnection) as well as non-delivery (through financial penalties that compensate the importer for back-up generation), and includes standard commercial bank guarantees backed-up by multilateral guarantees;"Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.9 (OCR)not yet checked by a person
  Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.9 (OCR) · not yet checked by a person
• Directive C/DIR/2/12/18, Article 6(i) (implementation) · target: 1 Jan 2020
  "Member States shall adopt Legislative, Regulatory and Administrative Provisions required to enforce compliance with this Directive at the latest by 1st January 2020." source"Member States shall adopt Legislative, Regulatory and Administrative Provisions required to enforce compliance with this Directive at the latest by 1st January 2020."Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.9 (OCR) · target: 1 Jan 2020not yet checked by a person
  Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.9 (OCR) · not yet checked by a person

The directive asks ERERA and WAPP to publish regularly on member states' adoption of its measures. No such publication, and no national measure citing the directive, was found in the sources read.

• monitoring and publication of adoption (requirement, not an event)
  "monitoring the compliance of Member States with the provisions of this Directive and regularly publishing information regarding the state of adoption of these measures." source"monitoring the compliance of Member States with the provisions of this Directive and regularly publishing information regarding the state of adoption of these measures."Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.9 (OCR)not yet checked by a person
  Directive C/DIR/2/12/18 on the Securitization of the Cross-Border Power Trade under the Regional Electricity Market · PDF p.9 (OCR) · not yet checked by a person