A Swot Analysis Of The Meter Asset Provider Regulation(Part 2)

By Idowu Oyebanjo

Continued from PART ONE

*Threats

The biggest threat to the implementation of the Meter Asset Provider (MAP) regulation is the regulatory inconsistency and policy summersaults for which the Nigerian Electricity Supply Industry (NESI) has come to be known in the eyes of the international community. What if, for socio-political reasons, the MAP regulation is withdrawn and the metering service charge removed some few months down the line post-investment? A related issue is around the ownership of meters to be installed. Will the consumer own the meter and carry it when they leave the property as was possible previously if they relocate within the same DisCo franchise area? 

Will the consumer pay for meters owned by others as well as pay for the electricity consumed (a service) and metering service rendered (another service) in the procurement of same service? Consumers may see this as a case of double-dipping! As the regulation makes provisions for consumers who wish to make an upfront full payment for meters, will such a consumer continue to pay for similar charges if they relocate elsewhere within the NESI? The best way around these and allied issues will be to decouple the consumer from the asset by means of a metering point administration number (MPAN) unique to every property to which electricity is supplied and metered. Theretofore, every consumer will pay a service charge for metering and this component can be included in the MYTO tariff structure. Also, the issues around customers who have paid for meters and are yet to receive them under the CAPMI scheme have to be resolved. There is the risk around sustainability of policies made in this regard and generally, within the regulated electricity supply industry in Nigeria.

The major stakeholders in the implementation of MAP are the consumers, the DisCos, the MASPs and the financial organizations who will provide funding for the investment required. To succeed, the process has to have a line of sight and be seen to be transparent. The monies due to each party has to be handled by an independent and dedicated system or body which escrows the payments made by consumers and distributes to relevant parties based on a previously agreed sharing formula. The implementation has to be such that investors and financiers can have consistent cash flow and recoup their investment in reasonable time. To this end, there is a need for a clear financial or capital structure in the implementation (debt and or equity) for MAP and financiers who will provide long-term loans at single-digit interest rates. Sadly, the Central Bank of Nigeria (CBN) that has been in the fore-front of the Nigerian Electricity Market Stabilization Aid, currently has a limited budget available to provide finance for Meter Asset Service Providers (MASPs). That said, the CBN is only prepared to provide funding in the form of re-financing for MASPs that can demonstrate viability and sustainability of their business model.

The time deadline provided for DisCos to procure the services of MAPS is one hundred and twenty (120) days following the 3rd of April, 2018 date of declaring the regulation. In comparison to the level of activities to be carried out for a competitively tendered procurement process and the number of certified MASPs for the entire country (22), this time is insufficient and need increasing. MASPs should also not be limited by the number of permits they have to obtain to accelerate the delivery of meters to cover the sure-to-increase metering gap. Also, economy of scale should be encouraged to ensure the warranty on installed meters are up to the shelf life, ten (10) years say, of installed meters.

For the general implementation of the MAP regulation to be a success, there is need for the proper monitoring and development of a competitive MAP procurement process. Nigerian Electricity Regulatory Commission (NERC) tenders’ auditors will ensure transparency and review the procurement process. Both pre and post-installation audits are imperative. MASPs must have the technical competence and financial capacity to carry out the intended services and the procurement process must ensure this is the case. We need to have genuine investors who will be willing to put money into investing in infrastructure, which in this case are the durable and fit-for-the purpose electricity meters for the NESI. This will also mean the power system will have a much desired enforcement system devoid of the corruption-ridden judicial system we have to day. The special court for the NESI will rely on the efforts of specially trained enforcement officers who will render swift services up to adjudication based on laid down procedures.

According to the regulation, consumers will have to pay a metering service charge (a lease charge) for the services provided by a MAP. In view of the level of consumer apathy today, and more so, as many consumers have paid for meters previously under the CAPMI scheme and are yet to receive the meters, there is an urgent need for an extensive enlightenment and sensitization campaign to be championed by NERC to seek the understanding of consumers nationwide. It is best to involve consumer advocacy and civil society groups, consumer protection council, and other affiliate organizations during the communication efforts to make this campaign a success. Yet, there is still the issue of consumers who reject the offer to have meters installed in their property. Thus, a robust enlightenment campaign for market participants and customer re-orientation to be championed by the DisCos and NERC is apt.

The absence of robust data and communication systems on which the stakeholders including the MASPs can leverage is another area of need. For the NESI to function optimally, and by extension for the implementation of the MAP regulation to be a success, there is a dire need for customer enumeration, consolidated with asset information systems. 

This provides an opportunity for DisCos to sponsor an energy networks association (ENA) to be saddled with delving into core technical problems within the NESI for and on behalf of the stakeholders. Issues to be looked at include but not limited to cost-reflectivity of tariffs, customer charging methodology, consolidated and centralized high-fidelity data capture of consumers and assets, technical policies for the successful operation of power assets and systems, specifications for plants, components and devices, research and development (R&D), investigation into failures and recommendations etc.

As metering services have hitherto been in the jurisdiction of DisCos, there will be cases of existing contracts with certain metering services providers that need to ultimately operate based on the MAP regulatory framework. While a process to ensure the sacrosanctity of such contracts has to be put in place, a cut-off date for migrating all such legacy metering services contracts to operate in line with the MAP regulation has to be determined. Such existing contracts between DisCos and their current metering service providers have to be declared to NERC now to preserve the integrity of the new regulatory regime. Also, it is possible for a DisCo to frustrate the process of implementing the MAP regulation if for example additional mundane and impeding requirements are placed on MASPs in the procurement of their services as the regulator has only provided minimum requirements for MASPs with Discos at liberty to demand further requirements in conformance with their asset management policies. 

This has the potential to slow down the implementation of the MAP regulation. The antidote to this is the separation of the “wire” business of DisCos from the energy supply business to be provided by separate legal entities, owned by existing DisCos, MASPs or others. In addition, as MASPs have to procure 30% of meters from certified local manufacturers, a system has to be worked out to ensure that MASPs patronise local manufacturers of meters and if possible tracked by the regulator. Also, the percentage of local content involvement can be increased (or flipped) to make original equipment manufacturers (OEMs) to open shop in Nigeria which brings with it attendant employment opportunities and allied economic benefits that impact positively on the country’s GDP.

The absence of technical specification and standards of electricity meters to which MASPs must adhere leaves room for sub-standard meters to be installed within the NESI. This threatens the sustainability of the business for MASPs and may ultimately lead the consumers back to status quo. The required specifications will include requirements for technology, data management and communication systems. There is also the issue of collaboration between NERC and Nigerian Electricity Management Services Agency (NEMSA).

The MAP regulation is a step in the right direction towards entrenching full retail competition in the NESI as envisioned by the Electric Power Supply Reform Act (EPSRA) 2005 which has to be updated to reflect the changes brought about by the declaration of the eligible customer and meter asset provider regulations. Its implementation is only a part of the solutions to the myriads of problems bedevilling the power sector. Closing the metering gap does not in itself remove the problems associated with ATC&C losses, cases of electricity theft and meter bypass, low morale and deficiency in human capital resources within the NESI.

The next step in the direction of full-scale competition in the distribution system within the NESI will involve the separation of the “wire” services from the energy supply services to allow DisCos to carry lower risks and focus on the required investment in the operation and maintenance of the weak network infrastructure while reducing the aggregate technical and non-technical losses in the distribution network.

…Concluded

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.

The Cry For Rescue From Abused African Ladies In Saudi Arabia

By Farouk Martins Aresa

News about domestic helps abuse in Saudi have been around for a while but they are mostly from Philipino house helps. There was a report about abuse of Kenyan women as far back as 2015 that was reported locally and on BBC. The bad news we get from Saudi Arabia are from Africans on pilgrimage and some abusing their visa conditions to commit deplorable crimes, especially Nigerians despite the severe punishment of beheading. 

Nigerians young ladies and other Africans are crying out from Saudi Arabia! These are young women that neither had any desire to sell their bodies by taking oath nor did they swear at the shrine in order to become prostitutes. They paid agents good money with the hope of securing decent jobs in Saudi Arabia. Unfortunately, ladies include very young girls let go by unscrupulous parents. There are African agents in many cities including Abuja, Accra and Nairobi recruiting domestic helps into Saudi Arabia as slaves.

Killings: Blame Buhari Not Service Chiefs!

By Richard Maduku

Despite a presidential appointee’s numerous enviable privileges, there are persons who don’t wish to become one today under President Muhammadu Buhari. A few even pity his aides. This is not because contractors will not build houses or buy cars for them because of the anti-corruption stance of the man. It is also not because they detest being referred to as usurpers, hyenas or jackals by the first lady whose outspokenness could sometimes be more critical of the government than that of a spokesperson of the rival political party. Neither are those who feel this way nursing presidential ambition come 2019 general elections. Rather it is because of the shortcomings of the government for which, whether out of fear or reverence for the President, the aides are always being blamed. 

For instance, the exasperating ineptitude if not sleaze that plagues the Ministry of Petroleum Resources which the President has appropriated for himself despite his enormous responsibilities are never attributed to him. It is the Junior Minister and the Group Managing Director of the Nigerian National Petroleum Company that always take the flak for everything including the frequent scarcity of petrol all over the country especially at Christmas/New year periods.

Buhari 2019: The Audacity Of Buharideens

By Martins-Hassan Eze

“Nothing in the world is more dangerous than a sincere ignorance  and an conscientious stupidity” — Dr. Martin-Lurther King Jnr.

Walahi! This thing called shame some Dudu’s just don’t have it. How can a man with conscience and human heart refuse to acknowledge the regrettable fact the GMB is a disaster; a ticking time bomb. Is it not now clear that GMB is the worst thing to happen to Nigeria since the return of civilian rule in 1999? Yet, some mugus are not just shameful enough to stop selling the candidature of this Mobutu in the social media. And, I ask. Is the protection of lives and properties no longer the primary responsibility of government? Have PBM and APC not failed woefully in this regard? Perhaps, for Elrufai; the petit Kaduna tyrant and Dean, college of Buharideens, good governance is all about ethnic cleaning and political jihad. 

President Buhari 

Who should we blame? Did KONGI the noble laureate not bemoan the fact that social media is a vomitorium some years back?  Some folks think that the social media is their village stream. They just jump into the square with rotten and stinking narratives: fighting corruption is the reason why we should become slaves in our country. Fighting corruption is also the reason why all ancestral lands of non-Muslims in the north should become a mass grave and grazing land for Fulani herdsmen.

Nigeria: Before Bad Politics Relegates Good Policies

By Martins Oloja

Combined effects of bad politics within governing party (APC), president’s aloofness and strange executive procrastination appear to have stolen some thunder from two good governance policies that would have shaped good public opinion for the Buhari administration last week.

*President Buhari 

In other words, curious focus on do-or-die politics in Ekiti and the implications of incipient implosion within the governing party where some born-‘again(st) reformers’ are scrambling for new platforms seem to have taken the steam out of what would have been reported last week as the Buhari government’s special focus on building institutions for strengthening democracy and the economy.

Why Good Journalism Truly Matters

By Adewale Kupoluyi

Media, democracy and development are tripartite partners that could drive any modern society. These critical issues formed discussions at the just-concluded 67th General Assembly and 2018 IPI World Congress of the International Press Institute, held in Abuja for the very first time in the history of Nigeria and attended by some 330 participants, 65 speakers from 37 countries. Themed, Why Good Journalism Matters: Quality Journalism for Strong Societies, the congress coincided with when IPI would hold its flagship global press freedom event in West Africa. 

Welcoming all, IPI Executive Board Vice-Chair, Dawn Thomas, said the hosting was an acknowledgement of the country’s historical importance to the institute and that Nigeria became a key focus of IPI’s Africa programme in the 1960s and 1970s, when it established the Nigerian Institute of Journalism (NIJ). The IPI Executive Director, Barbara Trionfi disclosed that the congress was a reminder of the power of solidarity in the global media.

Igbo Independence And Biafran Identity

By Osita Ebiem 

In this essay we will take time to clarify some areas that seem to confuse some people in the on-going Biafra separatist movement in Nigeria. Over the years, as will be expected, the move for the independence of Biafra has undergone some transformations. These changes seem to have created a sort of mixed messages in the minds of both observers and participants. So, at this point it is really important that we try to clarify some of the seemingly ambiguous aspects of the movement.

It is a fact that for some of the participants, those involved in the struggle, many are finding it difficult to come to terms and accept the obvious realities of these changes when they seem to go against some of their assumed or preconceived notions of what the struggle should be about. This is understandable. But in spite of the genuine appreciation of the position of these colleagues it will be foolish if we should ignore the prevailing obvious new realities and facts as they concern the movement. We can only ask that such individuals will be humble enough to find the sincerity and courage to acknowledge these truths and incontestable facts when they are revealed to them. 

Burning Questions On Abacha’s Returned Loot

By Ayibakuro Matthew

Over the last week or so, there has been heightened interest amongst Nigerians about the use of the most recently repatriated $322.5 million Abacha loot.  The questions raised around the issue include the choice of using the money for the conditional cash transfer programme of the Federal Government, the choice of states benefitting from the programme, the usefulness of a monthly transfer of N5, 000 to poor Nigerians and concerns about the re-looting of the funds.

*Gen Sani Abacha 

It is significant to note at the onset that the concerns of most Nigerians about the use of the $322.5 million for the conditional cash transfer programme, instead of a legacy project with more visibility and impact, is both valid and understandable. However, the use of the funds for cash transfers is an outcome of months of negotiation that enabled the repatriation of the funds in the first place.

Ekiti Election: Test For Our Democracy

By Raymond Oise-Oghaede

The Ekiti State governorship election is around the corner and all eyes from far and wide are on the state because of its cruciality to determining the level of the people’s preparedness for the 2019 general elections. Its importance to the permutations of the ruling parties at the federal and state levels respectively cannot be overemphasized. Presently, Ekiti is the only state in the South West that is not under the control of the (APC) and it is the only state that the main opposition party is holding on to and hoping to build on in its quest to have a major breakthrough into the region. 

*Fmr Gov Fayemi and Gov Fayose of Ekiti State 

Consequently, you will agree with me that it is going to be an interesting contest in all ramifications. The situation is further embroidered with curious expectations as a result of the caliber and personalities of the candidates that are been thrown into the contest. The popularity, political acumen and the wherewithal at the disposal of these candidates and their party platforms have made it look very unpredictable.

President Buhari, End These Killings Now!

By Folaranmi Adegbite

“My father, my mother, my wife, our four children were shot, killed and burnt.”

This cry of horror by a survivor of the Fulani herdsmen massacre of innocent people in Plateau State calls to question the sincerity or competence of the President of the Federal Republic of Nigeria, Muhammadu Buhari to provide security for Nigerians. President Buhari during his campaign for 2015 Presidential Election promises to improve on fragile security in the land then among other campaign promises. 

*President Buhari 

However, since his coming to power, we cannot say that the nation has had a relief from insecurity. All his efforts and that of his service chiefs are like taken one step forward and two backward which leads to nowhere in particular.

In fairness to Buhari, the killings in Nigeria predated his administration. Whether killings by Boko Haram, insurgents, Fulani herdsmen, or ethic militants all these have been happening before Buhari came to power.

Carnage And Poverty As National Tragedies

By Sufuyan Ojeifo

Two existential issues – security and poverty- that bear great relevance to the assessment of performance of governments globally reared their heads back-to-back, last week, in Nigeria. Both issues were so tangible that they could not escape essential appraisal and indictment.

While the carnage in Bakin Ladi local government area of Plateau State on June 23, 2018 was so self-evident such that it could not be denied by the Federal Government, the Brookings report that Nigeria has overtaken India as the global poverty capital has been rebutted by government through the Minister of Industry, Trade and Investment, Okechukwu Enelamah. 

Nigeria: Descending To Slaughter Land

By Adeniyi kikelomo Evelyn

Nigeria, our once beautiful country has been transformed into the playground of evil minded and uncouth individuals who have taken immense advantage of our poorly managed and weak security. If you like, call it shameful. Citizens of Nigeria are being pushed out of their homes, villages and forced to abandon their heritage due to the lackadaisical, deceptive and compromised stands of the government towards the safety of the people which should be the constitutional privilege of the citizens.

A few days ago Plateau State was thrown into an uproar once again as some villages were attacked for 48 hours. 48 Hours! At this period of many hours, one wonders what our security agencies were doing before and during the attack. Have they negated their sniffing assignment or slept on their active watch? I believe no excuse is plausible for this dastardly act and seemingly permissive genocide.

Nigeria Must Atone For the Blood Of The Innocent

By Arthur Agwuncha Nwankwo

The recent revalidation and recognition by the federal government of late Chief MKO Abiola as the rightful winner of the June 12, 1993 presidential election in Nigeria has generated intense debate in the country. This debate has further been exacerbated by the unilateral declaration of June 12 of every year as Nigeria’s democracy day instead of May 29. 

*Dr. Arthur Nwankwo 

While this move by the Buhari administration has been interpreted by his apologists as a political master stroke aimed at galvanizing support from the south-west, many others have interpreted it not only as a political mischief but also as the debauchery and selective treatment of issues that bear at the foundation of the country.

Fulani Herdsmen Have Declared A War On Nigeria – Eastern Mandate Union (EMU)

Communiqué Issued By The Eastern Mandate Union (EMU) On The Level Of Insecurity And Menace Of Fulani Herdsmen In Nigeria

 

*Dr. Arthur Nwankwo,
Chancellor, Eastern Mandate Union   

*Background to the Communiqué:
Following the recent carnage by Fulani herdsmen in Plateau State in which over 200 persons were slaughtered in cold blood; and growing level of insecurity in the country, the Eastern Mandate Union convoked an emergency meeting last Monday, July 2, 2018, to review the state of the country and the ethnic cleansing and jihad that is currently sweeping across the Middle Belt region of the country.

We have on several occasions pointed out that Nigeria is an aberration created by a colonial fiat to feed its insatiable economic appetite. Regrettably, since political independence, Nigeria has failed to weave a nation out of the welter of ethnicities that make up Nigeria to the extent that today Nigeria has become emblematic of a failed state capacious only in the wastage of human life. Today in Nigeria, human life has been subordinated to the life of a cow. 

Disturbing Killings In Plateau State

By Adewale Kupoluyi

Over 200 persons have been reportedly killed and over 50 houses razed down in renewed attacks in 11 villages in three local government areas of Plateau State, namely: Barkin Ladi, Riyom and Jos South, attributed to armed herdsmen bandits, who have been terrorising the Middle Belt region since 2001. This time around, heavily armed gunmen had invaded the affected villages of Exland, Gindin Akwati, Ruku, Nghar, Kura Falls and Kakuruk; in the Gashish district as well as Rakok, Kok and Razat villages in Ropp district of the local government area. 

Eye witnesses to the killings claimed that security agents failed to intervene despite the high level of presence, as a result of the recurring communal violence. The source further noted that the crux of continuous unending bloodbath in the state was the unresolved crisis, saying the latest fighting was a result of the sale of cattle by herdsmen. After selling the cow, some locals attacked the herdsmen, killed them and took away the money alongside the cow.

President Buhari, Call A Spade A Spade!

By Anthony Cardinal Olubunmi Okogie

Every human life is precious. The life of every Nigerian, irrespective of ethnic, regional or religious affiliation is to be treated with dignity. 

All around the world, citizens look to their government to protect them. But, here in Nigeria, the blood of the innocent flows like water despite Nigerians’ desire and demand that government secure their lives and property.

*President Buhari 

Not too long ago, Chief Olu Falae, a senior citizen of Nigeria, was abducted on his farm by herdsmen. Since then, others have struck in Enugu, Delta and Oyo states. In the Middle Belt, they have robbed, raped, and slaughtered human beings like cows. They have taken over other people’s land in the name of grazing.

A member of Miyetti Allah appeared on television, justifying as retaliatory the killings in Plateau State. He was not the first member of Miyetti Allah to make the statement. Nigerians are baffled that he is yet to be arrested. Where were those responsible for our security at a time they were needed most? 

Buhari, Abacha’s Loot And The Poor

By Paul Onomuakpokpo

As the administration of the President Muhammadu Buhari lurches into the twilight amid the fast-vanishing possibility of securing a second mandate, it flails in all directions in search of survival. It is striving currently to make the poor among us to accept as reality the illusion that it can ratchet up their fortunes in the remaining days.

*Gen Abacha 

It is an unrelieved illusion because since the administration has failed in three years to improve the lot of the people, it cannot in less than one year secure the acumen to accomplish this. Rather, the citizens should steel themselves for the prospect of their immiseration reaching its nadir in the remaining period of this administration. 

Nigeria: Plateau Massacre And An Overwhelmed President

By Levi Obijiofor

When news broke last week of the massacre of more than 150 women, children, and men in remote communities of Plateau State, everyone turned their attention to President Muhammadu Buhari for his explanation of how the mass murder of citizens on such a scale could take place in a country that is not at war. Buhari is the Commander-in-Chief of the armed forces. In that context, he is also the country’s chief security officer. The buck, we are reminded, always stops at the president’s desk. 

*President Buhari 

When atrocities of extraordinary magnitude occur in any country, the president has an obligation to furnish the citizens with clear, unambiguous, and unexpurgated account of what happened, who was complicit in the murders, and what the security forces did or did not do right to prevent the disaster or to apprehend the criminals. 

To Kill In The Name Of God Is Outrageous Murder – Archbishop Obinna

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THE CHINUA ACHEBE 

FOUNDATION INTERVIEW SERIES

  April 2006

All Rights Reserved ©

______________________

*Archbishop Obinna during the interview 

Dr. Anthony J.V. Obinna, the Catholic Archbishop of Owerri, is one of Africa’s foremost theologians and scholars. Born on June 26, 1946 in Emekuku (near Owerri), and educated at St. Peter Claver Seminary, Okpala (near Aba), and Bigard Memorial Seminary, he was ordained a Roman Catholic priest on April 19, 1972. Obinna graduated with First Class Honours in Divinity, from the Bigard Memorial Seminary, an affiliate of the Pontifical Urban University, Rome. He left for Rome for a Masters Degree in Theology, and then for the United States for another Masters in Religious Studies, concentrating on Religion and Culture, and then a PhD in Education and Theology.

A former lecturer in the Religious Studies Department of the Alvan Ikoku College of Education, Owerri, Archbishop Obinna is the current Chair of the Education Committee of the Catholic Bishop’s Conference of Nigeria (CBCN). He was ordained a Bishop on September 4, 1993, and became the first Archbishop of the Catholic Archdiocese of Owerri when it was created in 1994.

In this interview with UGOCHUKWU EJINKEONYE, Archbishop Obinna canvasses an attitudinal change, which he hopes will help steer Nigeria out of its present political, moral, and economic descent, and reroute it to the path of progress and lasting development.

Excerpts:

Your Grace, do you think we can in all honesty say that we have freedom of worship in Nigeria today?

Well, constitutionally there is freedom of worship. So, to some extent, it is possible to say: yes, Nigerians worship as they choose. But we have had problems in certain parts of our country, where people were prevented from worshipping, as they desire. There have been attempts to muzzle Christians in some parts of the country, and that goes to show that the freedom of worship enshrined in the constitution is not given its full play. In the more Christian-dominated areas, I believe that there is no prevention of anybody from being a Moslem, from worshipping God. But in some areas of our country, there have been churches that were bulldozed, and land allocations have been refused to Christian worshippers.