Showing posts with label A Swot Analysis Of The New Electricity Tariff In Nigeria. Show all posts
Showing posts with label A Swot Analysis Of The New Electricity Tariff In Nigeria. Show all posts

Saturday, January 23, 2016

A Swot Analysis Of The New Electricity Tariff In Nigeria (2)

By Idowu Oyebanjo

The Opportunities
Localisation Of Services
In the last few years, there has been increased agitation for localisation of services in the power sector especially in the local manufacture of smart meters. Local manufacturers of meters now have an opportunity to showcase their capability under the local content initiative. This will lead to the creation of jobs and business opportunities as marketers of electricity recharge cards or vouchers just as experienced in the Telecommunication sector will spring up along with companies involved in metering and customer billing systems. 
*Idowu Oyebanjo
A critical element that will hold NESI in good steer is the need for a global procurement strategy or culture where stakeholders leverage on the volume of purchase to reduce cost. In the atmosphere of cuts, this will serve the industry well. This can start now. As Discos seek to purchase meters in bulk, they should negotiate a fair deal in view of the number of meters they will have to purchase. Consultants and service providers will not be left out as installation, operation, and required maintenance services for meters procured will be sourced. Generally speaking, there is need to establish the Joint Qualification System (JQS) and register of suitably pre-qualified practitioners to provide these services by the Nigerian Content Joint Consultative forum. 

Other potential opportunities include but not limited to the provision of Demand Side Response and Distributed Energy Resources (DERs), pursuit of revenue protection initiatives by Discos, energy efficiency and energy conservation (as those who waste electricity will now conserve it and therefore contribute to increased availability of power elsewhere on the network), increased network operational efficiency, phased introduction of feed-in-tariffs (as consumers deploy renewable generation on their roofs), increased penetration of embedded generation with the attendant reduction in network losses and accelerated increase in availability of electricity supply.