Power Punch Is NESI embracing automation? Part II by omiesam November 30, 2023 written by omiesam The nation’s power grid lacks adequate automation. Nigeria’s electricity is generated from hydro and thermal sources, whose transmission lines have been continually subject to vandalism. As such, there has been a longtime failure to detect faults during distribution, adversely impacting power generation forecasting and electricity supply. This situation is why fully modernizing the Nigerian Electricity Supply Industry (NESI) for real-time monitoring and control of distribution systems is vital to achieving a reliable electricity supply. The first part of this series highlighted automation benefits. This part explores the challenges. Challenges Automation comes with several challenges. These challenges include cybersecurity risks, financial implications, and regulatory and workforce gaps. For a country like Nigeria, navigating these challenges necessitates political and economic balancing due to its complex composition. The nation’s institutions, governance structures, and social, political, and economic dimensions are heavily interdependent. Thus, seamless automation may be challenging. Cybersecurity Electricity is an integral part of all modern economies, and as electricity sectors become more digitalized, threats of cyberattacks rise. In 2021, 71% of organizations suffered cyber-attacks, with 44% paying an average cost of $3.43 million as ransom to protect sensitive data. These figures indicate the importance of an appropriate cybersecurity regulatory framework to protect against threats. There are several policies and laws for cybercrime activities in Nigeria, and the primary legislation for cybersecurity is the Cybercrime (Prohibition, Prevention, etcetera) Act 2015. Despite the efforts of the Nigerian government to combat cybercrime, there are still stumbling blocks that limit cyber-attacks, such as infrastructure and inadequate regulatory frameworks. On the former, automating the power system requires responsive incident response centres, cybersecurity training facilities and development centres. Whilst on the latter, relevant regulations must be continually reviewed and updated to address current and emerging cybersecurity threats. Financial costs The capital investment required to implement automation technologies is exorbitant. As noted in Series I, the Transmission Company of Nigeria (TCN) estimated $65 million to automate the national grid with a new SCADA system in 2018. This figure has likely increased. Nigeria’s electricity sector’s costs far exceed its revenues, and the deficit has widened. The Federal Government of Nigeria allocated ₦239 billion to the power sector in 2023, highlighting ₦232,620,744 832 as the capital costs for running the sector. According to the National Bureau of Statistics, the revenue collected by distribution companies in the last quarter of 2023 was ₦202.62 billion. Operational costs are typically 10 times the sector’s revenue or higher in most emerging countries. For instance, Iraq’s total explicit operational costs amounted to $9.3 billion, equivalent to 4.0 per cent of its GDP, with revenues totalling less than 800 million dollars. While similar power sector financial challenges exist in other emerging countries, Nigeria faces particularly substantial financial gaps, as evidenced by its market illiquidity. Regulatory and policy framework Several regulatory overhauls have been implemented to increase liquidity in Nigeria’s power sector. These changes aim to improve financial liquidity, fostering an enabling environment for significant automation in the sector. Among these changes is the approval of the Fifth Bill (No.33), the Devolution of Powers (National Grid System), which amends the 1999 Nigerian Constitution. This amendment, signed by former President Muhammadu Buhari, empowers states to generate, transmit, and distribute electricity in areas covered by the national grid. Furthermore, the Electricity Act 2023 stimulates investments for automation by promoting indigenous capacity in technology for renewable energy sources. This regulatory framework signals Nigeria’s readiness to enhance financial feasibility for full-scale automation. Nevertheless, the efficacy of these initiatives is significantly dependent on their implementation. A phased approach to automation Nigeria’s power systems rely on manual tap changers, leading to increased power outages and reduced system safety. Many transmission and generation stations lack supervisory control, data acquisition (SCADA), and telecommunication systems. Automating the electrical power distribution system, including procuring a new SCADA system and integrating the Internet of Things (IoT) into transmission operations, is crucial to swiftly address power sector issues like power outages and revenue losses. November 30, 2023 0 comment 0 FacebookTwitterPinterestEmail
Connecting The Dots Electricity Act 2023: The Future of State Electricity Markets by doose November 30, 2023 written by doose On the 9th of June, 2023, President Bola Ahmed Tinubu enacted the Electricity Act 2023 (EA). It is anticipated that the Act will remedy the challenges that derail the Nigerian Electricity Supply Industry (NESI). In this episode, we shed light on the EA provisions, opportunities, challenges and the Act’s potential to shape the future of state electricity markets positively. Discussing this with us is Eyo Ekpo, CEO of Excredite Consulting. November 30, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch The Electricity Act and Private Sector Participation by omiesam September 15, 2023 written by omiesam The Electricity Act (“the Act”) enshrines the liberalisation of the electricity market to allow private sector participation. Section 1 of the Act provides a framework to guide the market’s transition to a purely contract-based competitive electricity market from the previous non-contract-based structure. This liberalisation was done to revolutionise the market’s monopolistic characteristic and disentangle the roadblocks that hinder the influx of private capital into the Nigerian Electricity Supply Chain (NESI). Private sector participation? the benefits Deregulating the market has been heralded by industry experts as the key to revamping the NESI. Private participation in the power industry has recorded numerous benefits in the Global South, including competition, innovation in electricity services and overall sector growth. An illustrative example is China. In China, its state-owned energy producer, the State Power Corporation (SPC) – before it was unbundled into several companies, controlled over seventy (70) per cent of the total generation capacity. However, after deregulating the country’s electricity sector and allowing private sector participation, SPC’s control was reduced to forty (40) per cent. This change led to increased independent power producers (IPPs), which enhanced affordable connectivity and power generation. De-monopolising electricity markets increases competition, which may drive down electricity prices. On the other hand, this begs the question of the challenges that may accompany liberalising the market and how prepared the NESI is to handle them. These potential challenges are discussed below. Private sector participation? “the unknown” Electricity generation cost is volatile in liberalised markets. This volatility is because the market forces of demand and supply determine the cost of electricity and not regulators, which is alarming for a few reasons. One, unlike the consensus that a competitive market reduces electricity prices, the United States electric industry evidenced otherwise. In 2007, the Ameren utility in the U.S. increased its electricity bills by fifty-five per cent for customers, compared to the twenty-six per cent increase noted by Commonwealth Edison customers. Thus, although studies show a link between implementing deregulation policies and electricity price reduction, most studies have shown that such reduction is short-term, noting a reversal to increased prices in the long term. Therefore, deregulation may increase utility prices for you and me, which is worrisome as production costs and other economic factors in Nigeria already diminish the average consumers’ purchasing power. Secondly, the NESI has been subject to a legacy of compounded issues, making the willingness of private participants to invest obscure. The private sector is profit-driven, and the readiness of state actors to tackle NESI’s challenges, such as inadequate infrastructure and regulatory uncertainties, is crucial to ensuring full-scale privatisation for improved reliable electricity. Thus, state governments should consider existing NERC regulations on franchising and third-party investments to guide their market designs in establishing their regulatory markets for easier integration of new market entrants. Leveraging existing regulations would prevent legal hitches and provide a clear pathway for accessing existing infrastructure, thereby enhancing market coordination and preventing abuse of market power by previous monopolistic forces. Way forward The primary purpose of deregulating the power sector is to improve market liquidity. To achieve this improvement, state regulators must resolve institutional issues that may hinder the transition to a competitive electricity market. A foreseeable challenge is a dip in profits of the companies with monopolistic powers as a result of de-monopolising the NESI, which was the case in Argentina during the global economic crisis. This profit dip may lead to friction between existing and prospective private sector entrants. Hence, deregulating the market necessitates structural transformation and synchronisation between private and state actors, with the government playing a more significant role in promoting coordination. The government must develop strategies to compensate current industry players for profitable losses while levelling the playing field for new entrants. Agreeably, liberalising the NESI promotes holistic sector growth. However, state actors must eliminate entry barriers for better implementation of their respective objectives. September 15, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Implementing the Electricity Act 2023 by doose September 14, 2023 written by doose The Nigerian power sector has witnessed several attempts by succeeding governments to achieve stability. The most recent attempt is President Bola Ahmed Tinubu’s enactment of the Electricity Act 2023 (EA). The EA marks a crucial step in establishing a comprehensive legal framework for Nigeria’s power industry. Fundamentally, the EA establishes a thorough legal and institutional framework for the Nigerian power industry in electricity generation, transmission, system operation, distribution, supply, trading, and consumer protection. Before this, there was the 1999 attempt by the newly elected democratic government to rehabilitate the Nigerian power sector. This rehabilitation resulted in enacting the Electric Power Sector Reform (EPSRA) Act of 2005, which the new EA repeals. The EPSRA birthed the statutory basis for the privatization of the power sector. A key step in this plan was the setup of the Power Holding Company of Nigeria (PHCN), subsequently unbundled into eighteen successor companies in 2013. Although PHCN was created to address the electricity deficit in the country, electricity access in Nigeria remained one of the lowest in Africa and the world. Some of the challenges of the EPSRA included poor operational performance, a lack of foreign investment, the absence of a long-term power development strategy, no attention to renewable energy exploitation and the inadequate implementation of reforms. These are some challenges the EA is set to address if properly implemented. The EA highlights significant provisions, including cooperation between regulatory commissions, state electricity markets, legal consequences for electricity-related offences, emphasis on clean and sustainable energy, clear regulatory power division, and establishment of an Integrated National Electricity Policy. The efficacy of every legislation lies mainly in its implementation. The ambitious provisions in the Act aim to establish an ideal electricity market in Nigeria. Nevertheless, it can disrupt the Nigerian Electricity Supply Industry (NESI) if ineffective. Therefore, capacity building and education are needed at varying levels of the electricity value chain to ensure success. The creation of state electricity markets will need to be structured cohesively to attract investments. The concern around the technical and financial ability of the various state regulators that will be created needs to be addressed to regulate these markets properly. The daunting question is: Will there be enough resources to do this in the short and medium term? These are some of the dimensions that states need to consider. The reforms in the EA are unlikely to be successful unless there is clarity on what the provisions of the EA are intended to achieve. Such clarity is needed to identify, for example, how the states exercise their powers, how existing national entities and citizens should adapt and respond, what the dangers are, how they should be mitigated, and what obligations. The highlights above spell out a need to close all gaps that hinder the seamless implementation of this Act to avoid misinterpretation, the risk of overregulation, and potential conflicts between the objectives of the Act. Finally, the importance of stakeholder engagement in Implementing the Electricity Act 2023 cannot be overstated. Relevant bodies must convene key actors together, address the existing challenges, and plan the implementation of the provisions of the Act. These actions should also include conducting knowledge-sharing sessions with countries like the United States and India, which have similar jurisdictions and multi-tier regulatory oversight on the energy sector. The EA, like every other legislation, is not perfect. However, The Act is a stride towards achieving a well-functioning power sector that meets the needs of consumers and promotes sustainable growth. September 14, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Impacts of the New Amendment on the NESI. by doose April 17, 2023 written by doose In 2023, achieving stable electricity still seems farfetched for Nigeria. According to the World Bank, Nigeria has the world’s most significant energy access deficit. In a bid to improve energy access in the country, the power sector has seen many frameworks, policies, investments, an influx of projects and recently, a new amendment. This article will explore the recent amendment and its impact on the Nigerian Electricity Supply Industry (NESI). On the 17th of March 2023, President Muhammadu Buhari, GCFR, signed a new bill into law that allows “A House of Assembly may make laws for the State with respect to the generation, transmission and distribution of electricity to areas covered by a national grid system within that State.” This new law empowers states to make laws and create frameworks specific to their capabilities and needs in relation to served and underserved areas, unlike in the past, when they were restricted to off-grid or unserved areas. Given the restriction of the state governments in this regard, this amendment is a step in the right direction. One of the significant impacts of this amendment on the NESI is the uprising of state-sponsored financing structures. States can now form their state electricity markets, including laws, policies, and financing mechanisms, which opens up an opportunity for the private sector to get involved and contribute their investments. This development can enhance energy access and increase competition in the industry, resulting in job creation opportunities as states begin to source experienced and capable individuals to manage state power investments. Decentralizing electricity markets allows for much-needed accountability, and this amendment can bring about improved efficiency and transparency. Also, state governments can now be held responsible for supply lapses, which could engender much-needed improvements in the NESI. Another potential impact of this amendment is a tariff hike. States can now effectively engender market-driven tariffs, which permit periodic reviews that sufficiently accommodate and adjust for inflation and exchange rate fluctuation. This development is necessary to address the bane of businesses in Nigeria. Furthermore, this amendment could decrease pressure on the national grid, as states can enact laws on generating, transmitting, and distributing electricity within their territory. Authorization to establish regional or isolated grids that run through their states is imminent, which would reduce pressure and overreliance on the national grid, resulting in a decline in system collapse. This development promotes grid flexibility and a reduction in grid expansion costs. Despite this amendment’s opportunities, there is a risk of overregulation, intrusive compliance requirements, and increased costs due to numerous toll points within the sector. To hedge against these risks, stakeholders like the Nigeria Electricity Regulatory Commission (NERC), National Assembly, Federal Ministry of Power, and all states must chart a path as to how both the state and federal electricity markets will co-exist. Some states have taken the lead in implementing this amendment, with Lagos State and Akwa Ibom State at the forefront. Lagos State had earlier enacted the Lagos State Electric Power Sector Reform Law 2018 and issued the Lagos State Electricity Policy 2021, recording some successes. Considering the array of positive impacts this amendment will have on the NESI, it is evident that this is a much-needed leap and has what it takes to move the electricity market in Nigeria forward. However, critical actors in the power sector must create clear-cut frameworks and networks to facilitate this process and improve energy access. The NESI must take advantage of this amendment and work towards providing reliable and affordable energy to Nigerians. April 17, 2023 0 comment 0 FacebookTwitterPinterestEmail
Our Work Sector Capacity Needs Assessment – A Nextier Intervention by thenextiergroup March 20, 2023 written by thenextiergroup With the increasing demand for better services from the Nigerian Electricity Supply Industry (NESI), more attention is being paid to performance management, performance implementation and quality of service. In response, the industry is activating and implementing policies and regulations that drive the quality of service. Capacity and performance improvement plans have become more commonplace in the sector’s recent operations. Developing infrastructure without the capacity to manage the market would be futile, and capacity building should accompany all other efforts. Historically, power sector stakeholders have recorded a lack of consensus around pathways towards achieving a Medium-Term Electricity Market (MTEM) coupled with identifiable capacity deficits within relevant agencies and capacity constraints. Nextier Power was commissioned to carryout a sector capacity needs assessment of some stakeholders at individual, institutional and systemic levels, taking account of business and operating models, feasible technology options and the preparedness levels of these agencies. In addition, the Nextier team was to propose a capacity development framework that would address the capacity shortfalls required to match the developing infrastructure. This would facilitate the creation of an enabling environment for an MTEM. The contributory roles of each institution to the management of the electricity industry and literature on the agencies’ capacities, operations and systems were thoroughly reviewed. In addition, an analysis of individual, institutional and system gaps taking account of business and operating models, feasible technology options and the preparedness levels of the client institutions enabled an understanding of what was imperative. Furthermore, comments and input from industry stakeholders enabled the development of a capacity development framework to match policies and regulations intended to drive the quality of service in the MTEM. A primary challenge the Nextier consulting team identified was the lack of intentional collaboration and coordination by the relevant agencies to move the system towards an MTEM. Furthermore, a significant hindrance was a lack of capacities needed by the Agencies to manage a more bilaterally advanced electricity market. Apart from identifying the challenges, the team made recommendations to facilitate synergy amongst the core stakeholders and sustain the capacity required to achieve the desired traction for enhanced service delivery in the Market. At the conclusion of the sector capacity needs assessment, Nextier recommended the need for targeted capacity building that would support the creation of the proper framework required to improve stability, manage performance, optimise improvement plans and enable operationalising the necessary operations agreements in the sector. Another recommendation by Nextier was the need to earmark financial (and other) allocations for the deployment of the Capacity Development Plan within the agencies and ensure intentional monitoring and evaluation to ensure it achieves the desired objective. A mix of in-house sector capacity development experts, technical advisers and the National Power Training Institute (NAPTIN) play a strategic role in addressing these recommendations. Also, collaborating with NAPTIN as a first recourse reduces the huge cost exposure usually associated with capacity development interventions of this nature. Despite the challenges faced, deploying the capacity development framework and accompanying sustainability plan has led to improvements in the power sector and strengthened capacities among the agencies. March 20, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch Leveraging Data to Advance the NESI by doose March 7, 2023 written by doose The Nigerian Energy Supply Industry (NESI) is experiencing rapid transformations and transitions that significantly impact energy generation and distribution. Hence, effectively leveraging data to advance the NESI by addressing evolving energy needs is crucial. Data is information translated into a form efficient for movement or processing. It is essential in promoting sound energy policy and improving electricity distribution systems. Data provides cost analysis, performance metrics and highlights expected improvements in reducing losses and lowering consumer tariffs. The NESI faces challenges requiring innovative solutions, driving a growing need for data. The sector can leverage internal data (e.g., from supply chain and trade), external data (e.g., consumption data, mobility, macroeconomic factors, brand sentiments, weather) and advanced algorithms to forecast consumption at a customer level and transmission at a location level. As a result, companies are better positioned to meet demand, avoid being surprised by disruptions or changes in conditions, and even eliminate unnecessary shipment, and, thus, fuel use and emissions. The following ways stakeholders can leverage data to advance the NESI include: Smart Grid Technologies: Smart grid technologies use advanced sensors and monitoring systems to collect data on energy usage, grid performance, and equipment health. This data can be used to optimize energy distribution and consumption, reduce outages, and improve the overall efficiency of the electricity supply system. Smart grids can also help to integrate renewable energy sources, such as solar and wind power, into the electricity supply mix. Renewable energy sources are increasingly becoming more affordable and accessible in Nigeria, and their integration can help to reduce dependence on fossil fuels and mitigate the impacts of climate change. In this respect, several studies project that the proper use of advanced analytics implies energy savings of between 5 and 7.5 per cent. Predictive Analytics: Predictive analytics utilizes customer data analytics, which involves collecting and analyzing data on behaviour, preferences, and usage patterns to develop targeted marketing campaigns, improve customer engagement, and promote energy efficiency. These campaigns can include personalized energy efficiency recommendations, such as upgrading to energy-efficient appliances or adjusting usage during peak demand. In addition, there’s a wealth of information in the grid. Capturing it, compiling it and analyzing it yields insights that help stakeholders, investors, developers and operators make better decisions, pre-emptively correct problem areas and prioritize the use of resources. However, leveraging data to advance the NESI could face some challenges, one of which is data quality. In Nigeria, data quality is often poor due to inadequate data collection processes and systems. As a result, it is challenging to derive meaningful insights from data, limiting the effectiveness of data-driven initiatives. Another challenge is data privacy and security. As the electricity supply industry increasingly relies on data, it becomes more vulnerable to cyber threats and data breaches. Utility companies must prioritize data privacy and security to ensure that customer data is protected and not compromised. Finally, there is a skills gap in Nigeria regarding data analytics. The electricity supply industry must invest in training and development programs to equip employees with the necessary skills to collect, analyze, and leverage data effectively. There’s no silver bullet to address all the challenges in the energy space. However, leveraging data to advance the NESI can improve the efficiency and reliability of the power supply, reducing costs for consumers and businesses alike. March 7, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Punch The Role of Complaint Redress Mechanisms in the NESI by aisi February 8, 2023 written by aisi Complaint redressing is the process of providing remedy or compensation for a grievance or unfair situation. The Nigerian Electricity Supply Industry (NESI) is plagued with numerous grievances, which are felt mainly by electricity customers. However, what is the role of complaint redress mechanisms in the NESI in placating electricity customers? The NESI is composed of four main sub-sectors, including Generation Companies (GenCos), the Transmission Company of Nigeria (TCN), the Distribution Companies (DisCos) and the electricity customers. The DisCos are the closest to the customers of these four sub-sectors because these utilities distribute electricity to households and businesses under their franchise areas. According to the Electric Power Sector Reform Act (EPSRA) 2005, the DisCos are also responsible for retrieving the cost of electricity produced and consumed by customers. However, that is not the case. The distribution sub-sector is faced with myriad challenges, the most pressing being the liquidity crisis due to DisCos’ inability to recover revenue from customers. This liquidity crisis ripples through other sectors of the NESI through the failure to pay gas suppliers, the lack of funds for maintaining and purchasing adequate transmission infrastructure, and the lack of meters, among others. These challenges affect the quality of power supply and exacerbate customers’ unwillingness to pay bills. An option to break this vicious cycle is exploring the role of complaint redress mechanisms in the NESI. Often, customers have complaints ranging from the quality of the power supply they receive to faulty distribution infrastructure in their neighbourhoods. There are often complaints of overestimated bills for unmetered customers under the Nigerian Electricity Regulatory Commission’s (NERC) estimated billing methodology. According to the NERC Customer Complaints Handling Standards and Procedures, all customer complaints must first be filed, written or oral, at the Customer Complaints Unit (CCU) of the respective DisCo. However, if a customer is dissatisfied with the resolution or the complaint has not been attended to after 15 days, the customer can then lodge a protest at the closest NERC forum office. If the customer is still dissatisfied, they can petition the NERC head office. Despite NERC’s directive on complaints handling by the DisCos, numerous electricity customers are unaware of the available complaint redress mechanisms. Hence, customers can not place complaints through the appropriate channels and get resolutions. This puts a significant strain on DisCo-customer relationships in the NESI. As mandated by NERC, DisCos are responsible for enlightening electricity customers on the available complaint redress mechanisms. This enlightenment can be in the form of printed pamphlets with CCU and forum office addresses made available to customers periodically. The DisCos are also mandated to notify customers on how to complain through traditional and social media. If properly harnessed, the role of complaint redress mechanisms in the NESI will go a long way in mending the relationship between DisCos and electricity customers. Through this, customers will have a better understanding of the workings of the electricity sector, including tariff band, estimated billing methodology and the need for revenue recovery by the DisCos. With more customer complaints being monitored and resolved, there will be an overall improvement across the Nigerian electricity value chain. Exploring the role of complaint redress mechanisms would help customers stay up-to-date and understand why things are happening the way they are in the industry. February 8, 2023 0 comment 0 FacebookTwitterPinterestEmail
Power Podcast The National Grid: Divided we shine? by aisi August 22, 2022 written by aisi On this episode of the power podcast series, our guest is Engr. Stephen Olumuyiwa, Transmissions Advisor, Niger Delta Power Holding Company (NDPHC). Engr. Stephen joins us to explore some challenges impeding electricity supply and the effects of disaggregating the national grid on the Nigerian electricity market. August 22, 2022 0 comment 0 FacebookTwitterPinterestEmail
Power Punch The NESI’s Metering Conundrum by aisi August 2, 2022 written by aisi The sub-sectors in the Nigerian Electricity Supply Industry (NESI), generation, transmission and distribution, face peculiar challenges that impede adequate power supply to consumers and deepen the liquidity crisis. Among these challenges, the NESI’s metering conundrum is of great concern. Since the 2013 privatisation of the sector, the electricity metering gap has done nothing but grow. For this reason, most electricity customers pay for tariffs according to their distribution companies’ estimated billing procedures (DisCos). However, the estimated billing procedures consistently lack transparency and room for accountability. And because customers cannot adequately prove that the amount they pay is equivalent to the electricity supply, it reduces their willingness to pay bills. Therefore, the DisCos’ collection rates decrease, and the liquidity crisis worsens. However, post-privatisation, the Nigerian power sector has experienced the implementation of different metering schemes. In 2015, the Nigeria Electricity Regulatory Commission (NERC) introduced the Credited Advanced Payment for Metering Implementation (CAPMI) scheme. Although unsuccessful, CAPMI aimed to provide meters to customers willing to pay, while their DisCos refunded the cost in cash or equivalent energy units. After the failure of CAPMI, NERC introduced the Meter Asset Provider (MAP) scheme in 2018. The MAP scheme sought to empower meter asset providers to finance, procure and install meters for electricity customers in the country. The cost of the meters was to be recovered through a Metering Service Charge billed to the customers as part of their tariffs. Unfortunately, this metering scheme has not been as successful as expected. To further address the NESI’s metering conundrum, the federal government launched the first phase (Phase 0) of the National Mass Metering Programme (NMMP) on the 30th of October 2020 with a loan from the Central Bank of Nigeria (CBN). The programme’s first phase aimed to disburse a million meters to electricity consumers; however, only about 980,000 meters were disbursed. Although the goal for the first phase wasn’t reached, the NMMP is already thought to be better than the MAP, which installed 350,000 meters in over eighteen months. The NERC Commissioner for Finance and Management Services, Mr Nathan Shatti, recently announced that the second phase (Phase 1) of the NMMP would commence in August 2022. The Regulator further stated that 45 local meter manufacturers are bidding to be part of this second phase. Shatti said: Our target is to install four million meters for customers. From our experience in phase zero, we want to make sure that the manufacturers can deliver before allocation is made. However, due to allegations of fraud by the CBN against some Meter Asset Providers (MAPs), the second phase of the NMMP seems to have been put on hold. So far, the CBN has provided over ₦60 billion in intervention funds to address the NESI’s metering challenges. However, despite these interventions, the NESI’s metering conundrum remains a massive bottleneck. In their latest Commercial KPIs Q4/2021 report, the Association of Nigerian Electricity Distributors (ANED) reported that of the 10 million electricity customers in the country, only 4.7 million are metered, which leaves 5.3 million unmetered registered customers. At the end of 2021, over 10 million customers are registered, with approximately 47 per cent metered. However, data obtained from NERC shows that there are 12.78 million registered electricity customers in the country. The NERC data also shows that the value for metered customers drops to 37.3 per cent, with unmetered customers being 62.7 per cent. These disparities in data beg the importance of a system that adequately enumerates electricity customers and the progress of metering schemes as they move forward. Also, how can the CBN ensure that metering intervention funds are adequately utilised, and the NMMP does not fail? These critical questions must be overcome for any effort at addressing the NESI’s metering conundrum to be productive. August 2, 2022 0 comment 0 FacebookTwitterPinterestEmail
