A Swot Analysis Of The Meter Asset Provider Regulation (Part 1)

By Idowu Oyebanjo

The recently released Meter Asset Provider (MAP) Regulation by the Nigerian Electricity Regulatory Commission (NERC) in attempting to close the metering gap in the power sector has become inevitable because DisCos have failed to provide meters to consumers within the Nigerian Electricity Supply Industry (NESI) as anticipated by metering targets set in the performance agreements between Federal Government and Distribution Companies (DisCos).

As a result of this failure, estimated billing, electricity theft, meter bypass, illiquidity in the power sector, increased aggregate technical, commercial and collection losses (ATC&C) and consumer apathy towards the power sector reform have been some of the undesirable consequences. Lately, the National Assembly has determined to criminalise estimated billing in response to the cries of consumers nationwide who have in the last five (5) years remained unmetered, let-down and unprotected in the current regulatory environment. By this regulation, NERC aims to achieve revenue assurance within the NESI, reduce illiquidity, close the current metering gap of over 4.7 million meters within the next three years and eliminate estimated billing. It is therefore imperative to consider the Strengths, Weaknesses, Opportunities and Threats associated with the implementation of the MAP regulation.

Why Nigeria Does Not Need Renewable Energy For Main Power Generation

By Idowu Oyebanjo

Recently, there has been an increase in the agitation for the deployment of alternative sources of energy for the generation of electricity in Nigeria especially when the problem of providing stable electricity seems to be intractable. But to be frank, this is not how to solve the problem. The inclusion of alternative energy sources as part of the total mix of generation portfolio is recommended but this must remain as "back up" to electricity generation from conventional sources of energy.

*President Buhari

There is a general tendency to follow the crowd by copying the trend in developed economies and most times this yields positive results. However, this will only be the case after a careful consideration of local circumstances. The Western world is persuading Nigeria to embrace their much needed market for Renewable Energy System not because they want to help, but because of the trade and economic benefits it will bring them in terms of the gains from the delivery of goods and services that this will bring, huge financial gains from the cost of expatriates they will export to us just like in the oil industry now taken over by their own mostly less educated professionals compared to locals, economy of raw materials in the industry they really need in their own environment, making Nigeria a dumping ground for their products among other reasons. If any country is serious about assisting Nigeria, they should provide funds and expertise to build, operate, maintain and transfer ownership of thermal plants (OCGT and CCGTs) in Nigeria within the shortest time frame possible.

There is no doubt that the capacity credit (I use a technical term here) of most of the renewable electricity systems is low compared to that of conventional generation which in simple terms means they cannot be relied upon for grid operations exactly as electricity generated from conventional energy sources such as oil, gas, coal etc. Power System is difficult to explain to non-power engineers especially those who hear about what takes place in other countries and believe Nigeria should copy them hook line and sinker without looking at local circumstances.