Nigeria: More Deaths Due To Electrocution Unless...

By Idowu Oyebanjo

Electrocution is basically death caused by an electric shock. While this is not a favoured topic, it is important to expose the facts about the Nigerian Power System and the high potential that it possesses to cause more deaths due to electrocution in the short to medium term if things are done improperly as they are now.

One of the anti-climax of not having stable electricity for over 50 years now in Nigeria is the fact that one did not hear so much of deaths due to electric shock from electrical appliances or devices. This is mainly because there was no “light”. With the recent increase in availability of gas to power stations, and the attendant availability of electricity supply, the weakness of the power system will come to the fore and more electrical safety accidents are bound to occur. Unfortunately, because electricity is a good servant but a bad master, the fatal results of not following electrical principles in the design, operation, maintenance and control of the power system is death by electrocution! In the last few weeks alone, we have had the death of a staff of one of the electricity companies while he was carrying out his day to day activities on a power line. But more recently, the case of Oluchi Anekwe, a 3rd year student at the University of Lagos has reinforced the calls by experts for a holistic review of the operation of the Nigerian Power System.

Nigeria: Eligible Customer Declaration In NESI – SWOT Analysis

By Idowu Oyebanjo

The declaration of eligible customers prior to the prevalence of conditions precedence as stated in the contract between FG and DisCos became inevitable because the DisCos have not been transparent with remittances of monies collected from consumers thereby worsening the illiquidity crisis in the electricity market within the Nigerian Electricity Supply Industry (NESI). In addition, DisCos have failed to invest in customer metering and the reduction of aggregate technical, commercial and collection losses as required by their distribution licences. Federal Government (FG) has therefore invoked the eligibility customer clause according to section 27 of the Electric Power Sector Reform Act (EPSRA) 2005 under Ministerial directives.

*Idowu Oyebanjo

One can easily understand the FG trying to preserve the health of the sector however, the initial reaction of the DisCos may be to cry foul. This may not be necessary as some of the transactions will still go through DisCos and TCN. It is therefore in order to evaluate the Strength, Weaknesses, Opportunities and Threats in FG’s decision to allow GenCos to sell electricity “directly” to four categories of customers with average monthly consumption of 2MW and connected to the medium and high voltage segments of the electricity network. This in my opinion should be described as customers with minimum Authorised Supply Capacity (ASC) of 2MVA. This is equivalent to a consumption of 100 Amperes (unit of current) at 11kV

*Strength

By declaring the eligible customers, Nigeria’s privatisation addresses the myth around subjecting a “natural monopoly” to economic regulation rather than competition in a privatised electricity supply industry by deepening competition in the electricity market of natural monopolies. Such competition or liberalisation will force the existing 11 DisCos to improve their operational efficiency and customer service. This will become a reference wherever matters of electricity regulation are being discussed in the world of power systems.

The advent of Distributed Generation and bringing of generation close to consumers will help to improve the liquidity of the electricity market and achieve the desired reduction in network losses more quickly if the scheme is properly implemented.

Cost Reflective Tariff: New Framework For Electricity Supply, Distribution And Pricing Required In NESI

By Idowu Oyebanjo

The issues surrounding cost reflective tariffs in NESI has remained unresolved even though it seemed all stakeholders acknowledged it but did nothing about coming together to deal with the issue which has kept the reform process in limbo since February 2016! This is about to change.

The two most important stakeholders in the business of electricity supply in Nigeria are the "demons" - those who believe that having a stable electricity situation in Nigeria will mean a huge loss of cash flow for them and their families and the customers who will actually pay the monies defined by any "cost reflective tariff", short-changed without meters but made impoverished by the corruption based estimated billing system which holds way today in NESI. The demons may include "Generator" importers, marketers, repair technicians and those involved in businesses connected with the scarcely available gas and oil (fuel for most power generating plants) such as marketers of petroleum products and the vandals who destroy gas pipelines to earn income from those who carry out repair works or those who gain political scores therefrom. These two groups of stakeholders have been grossly and arrogantly neglected when decisions are made for them or because of them. 

This is not to say there are no other important stakeholders like the government, CBN, NERC, Ministry of Power, consumer advocacy groups, ANED, NBET, DISCOs, GENCOs, TCN, foreign investors, local Banks, to mention but a few. The senate has thrown its weight behind the consumers of electricity declaring to put a stop to the recurring spate of bail out for which we predicted will become the lot of the ill-conceived, wrongly timed electricity market conjectured by some unqualified Nigerians who mediated the reform process. But there is always a time to make a U-turn in life when one is confirmed to be headed in the wrong direction. It is a question how far wrong is one prepared to go before doing the needful. In this regard, it is pertinent to examine the just released framework for petroleum products supply, distribution and pricing in May 2016 by the Federal Ministry of Petroleum Resources.