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POWER SECTOR REFORM: OPPORTUNITIES FOR THE NIGERIAN ENGINEERS
Presentation at the ORDINARY GENERAL MEETING OF IBADAN (THE PREMIER BRANCH)BRANCH, NSE BY ENGR. TASIU S. G-WUDIL,FNSE, SMIEEE 27TH JUNE, 2016
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OUTLINE OF PRESENTATION
The Nigerian Electricity Supply Industry Power Sector Reforms Process Establishment and Functions of NERC Regulatory Processes and Instruments Technical Codes, Regulations and Standards Roles for Engineers Opportunities and Challenges Conclusions
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The Nigerian Electricity Supply Industry
PRE-INDEPENDECE 1886-FIRST ELECTRIC POWER GENERATED AT MARINA, LAGOS FIRST IPP 1927(NESCO,JOS,NN) ELECTITY COMPANY OF NIGERIA AND NIGER DAM AUTHORITY 1951 POST INDEPENDENCE NATIONAL ELECTRIC POWER AUTHORITY(ECN + NDA)-1972
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The Nigerian Electricity Supply Industry
15th - 16th April 2009 The Nigerian Electricity Supply Industry
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The Nigerian Electricity Supply Industry
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The Nigerian Electricity Supply Industry
NEPA WAS: VERTICALLY INTEGRATED GOVT. OWNERSHIP POOR FUNDING, MGT AND “NON COMPETITIVE MARKET” COMMERCIALISATION OF NEPA STARTED AS EARLY AS 80s BUT NO POLITICAL WILL 2000 REAL UNBUNDLING INITIATED WITH NATIONAL ELECTRIC POWER PLOLICY
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The Nigerian Electricity Supply Industry
2005 EPSR ACT SIGNED INTO LAW 2005 NERC ESTABLISHED OVER 20 IPPs LICENSED TO DATE MOST IPPs ARE GAS FIRED “ABUNDANT GAS BUT INADEQUATE GAS SUPPLY INFRASTRUCTURE” PRIVATISATION PARTIALLY CONDUCTED TEM (Epileptically) OPERATIONAL SECURITY CHALLENGES THREATEN GAS SUPPLY AND POWER
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Power Sector Reforms Process
THE NEED FOR REFORM LIMITED ACCESS TO INFRASTRUCTURE, LOW CONNECTION RATES INADEQUATE POWER GENERATION CAPACITY INEFFICIENT USAGE OF CAPACITY LACK OF CAPITAL FOR INVESTMENT INEFFECTIVE REGULATION HIGH TECHNICAL LOSSES AND VANDALISM INSUFFICIENT TRANSMISSION AND DISTRIBUTION FACILITIES INEFFICIENT USE OF ELECTRICITY BY CONSUMERS INAPPROPRIATE INDUSTRY AND MARKET STRUCTURE UNCLEAR DELINEATION OF ROLES AND RESPONSIBILITIES
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Power Sector Reforms Process
GOALS AND OBJECTIVES OF THE REFORM IMPROVE EFFICIENCY AND PERFORMANCE ENSURE TRANSPARENT AND RESPONSIBLE MANAGEMENT LIMIT POLITICAL INTERFERENCE ELIMINATE GOVERNMENT’S INVOLVEMENT IN UTILITY MANAGEMENT PROMOTE PRIVATE SECTOR PARTICIPATION MANAGEMENT AND TECHNICAL OPERATIONS ENCOURAGE PRIVATE INVESTMENT IN GENERATION TO ADDRESS INADEQUATE SUPPLY ENSURE LEVEL PLAYING FIELD FOR ALL INVESTORS RELEASE GOVERNMENT FUNDS TO FINANCE CORE ACTIVITIES
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Power Sector Reforms Process
OBJECTIVES THE MOST POPULAR OBJECTIVE OF THE ELECTRIC POWER POLICY STATEMENT IS TO ENSURE THAT NIGERIA HAS AN ELECTRICITY SUPPLY INDUSTRY (ESI) THAT CAN MEET THE NEEDS OF ITS CITIZENS IN THE 21ST CENTURY; THIS REQUIRES A FUNDAMENTAL REFORM AT ALL LEVELS OF THE INDUSTRY NIGERIA (ESI) MUST BE SUCH THAT IS ABLE: TO MEET ALL CURRENT AND PROSPECTIVE ECONOMICALLY JUSTIFIABLE DEMANDS FOR ELECTRICITY THROUGHOUT THE COUNTRY; TO MODERNIZE AND EXPAND ITS COVERAGE; AND TO SUPPORT NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT, INCLUDING RELATIONS WITH NEIGHBOURING COUNTRIES. THE PRIORITY IS TO CREATE EFFICIENT MARKET STRUCTURES, WITHIN CLEAR REGULATORY FRAMEWORKS, THAT ENCOURAGE MORE COMPETITIVE MARKETS FOR ELECTRICITY GENERATION AND SALES (MARKETING), WHICH, AT THE SAME TIME, ARE ABLE TO ATTRACT PRIVATE INVESTORS AND ENSURE ECONOMICALLY SOUND DEVELOPMENT OF THE SYSTEM.
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Establishment and Functions of NERC
NATIONAL ELECTRICITY POWER POLICY (NEPP) GAVE BIRTH TO ELECTRIC POWER SECTOR REFORM ACT 2005 (EPSR) AND STATED “THERE WILL THEREFORE BE AN INDEPENDENT REGULATORY AGENCY FOR ELECTRICITY IN THE FORM OF A REGULATORY COMMISSION, WHICH SHALL BE CALLED THE NIGERIAN ELECTRICITY REGULATORY COMMISSION (NERC)”
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Establishment and Functions of NERC
NERC’S MANDATE THE EPSR ACT 2005 PROVIDED FOR ESTABLISHMENT OF THE NIGERIAN ELECTRICITY REGULATORY COMMISSION (NERC) WITH THE FOLLOWING MANDATE: “ENSURE THAT ELECTRICITY IS ADEQUATE, SAFE, RELIABLE, AND AFFORDABLE”
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Establishment and Functions of NERC
NERC’s OBJECTIVES: SECTION 32… OF THE EPSR ACT 2005 STATES THAT THE OBJECTS OF THE COMMISSION SHALL BE TO: ENSURE ADEQUATE AND RELIABLE SUPPLY OF ELECTRICITY IS AVAILABLE TO CUSTOMERS ENSURE THE QUALITY , SAFETY AND SECURITY IN THE PRODUCTION AND DELIVERY OF ELECTRICITY TO CUSTOMERS DEVELOP AND FACILITATE AN EFFECTIVE IMPLEMENTATION OF TECHNICAL, OPERATIONAL AND SAFETY CODES AND STANDARDS FOR THE POWER INDUSTRY IN NIGERIA. MAXIMIZE ACCESS TO ELECTRICITY SERVICES
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Regulatory Processes and Instruments
ECONOMIC REGULATION: Cost Reflective tariff NON-DISCRIMINATORY RULES: Uniform Segment Rules TRANSPARENT LICENSING: Standard Due Process OPEN RULEMAKING Stakeholder Input to Major Processes RETURN ON INVESTMENT: Cost Recovery & Profit REGULATORY ASSURANCE: Honor Sanctity of Contracts ACCOUNTABILITY & RULE of LAW: Compliance & Uniform Enforcement
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Regulatory Processes and Instruments
PRIMARY LEGISLATION, THE EPSR ACT 2005 RULES REGULATIONS ORDERS
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Technical Codes, Regulations and Standards
EPSR ACT 2005 MARKET RULES GRID CODE DISTRIBUTION CODE HEALTH & SAFETY CODE HEALTH & SAFETY MANUAL EMBEDDED GENERATION REGULATION INDEPENDENT ELECTRICITY DISTRIBUTION NETWORKS REGULATION NIGERIAN ELECTRICITY SUPPLY AND INSTALLATION STANDARDS REGULATION
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Roles OF AND for Engineers
15th - 16th April 2009 Roles OF AND for Engineers ROLES OF ENGINEERS DESIGN CONSTRUCTION MAINTENANCE MANAGEMENT SUBJECT MATTER EXPERTS
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Roles OF AND for Engineers
ROLES FOR ENGINEERS QUALIFICATION OF ENGINEERING PERSONNEL THE MINIMUM QUALIFICATION OF ANY PERSON TO BE ENGAGED OR ALREADY ENGAGED AS AN ENGINEERING PERSONNEL IN ANY UNDERTAKING, OR INVOLVED IN ANY ASPECT OF THE ELECTRICITY SUPPLY CHAIN SHALL BE ANY COREN REGISTRABLE QUALIFICATION. NESIS REG CONSULTANTS TO GENERATION, TRANSMISSION AND DISTRIBUTION COMPANIES & NERC MANAGERS OF THE COMPANIES METER SERVICE PROVIDERS OWNERS/SHAREHOLDERS TRANSACTION ADVISERS TECHNICAL PARTNERS TRAINERS SUBJECT MATTER EXPERTS FACILITATORS FOR LICENCE APPLICATS
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Opportunities and Challenges
NERC ALWAYS TRY TO GIVE PRIORITY TO COREN REGISTERED ENGINEERS ESPECIALLY THOSE ON THE BOARDS OF THE LICENSEES REGISTRATION FOR ANY TECHNICAL REGULATED ACTIVITY IN THE NESI ALL ENGINEERING PERSONNEL WISHING TO DO ANY BUSINESS IN THE POWER SECTOR WILL HAVE TO PROVE THAT THEY HOLD CURRENT COREN PRACTISING LICENCE METERING AND SAFETY HAVE BEEN ON THE FOREFRONT
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Opportunities and Challenges
UTILITY REGULATION IS AN ART THAT NEEDS TO BE UNDERSTOOD BY ALL PROFESSIONALS NOT ONLY LAWYERS POLITICIANS SEE APPOINTMENTS INTO NERC BOARD AS POLTICAL “SETTLEMENT” MORE SUBJECT MATTER EXPERTS ARE NEEDED TO LEAD NERC AS CHAIRMAN/COMMISSIONERS SECTOR EXPERIENCE AND EXPOSURE TO REGULATORY ENVIRONMENTS ARE KEY BUT LACKED IN THE PREVIOIUS DISPENSATION ENGINEERS AND NSE NEED TO LOBBY MORE FOR THE POSITIONS THAT ARE CURRENTLY VACANT (7)
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Conclusions THERE ARE VAST OPPORTUNITIES FOR NIGERIAN ENGINNERS AWAITING IN THE NESI WE SHOULD WAKE UP TO LOBBY FOR THE LEADERSHIP OF NERC AND MORE COMMISSIONER SLOTS
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THANK YOU FOR LISTENING
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