1. 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

2. 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

3. 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

4. The Nigerian Electricity Supply Industry
15th - 16th April 2009
The Nigerian Electricity Supply Industry

5. The Nigerian Electricity Supply Industry

6. 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

7. 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

8. 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

9. 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

10. 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.

11. 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)”

12. 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”

13. 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

14. 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

15. Regulatory Processes and Instruments
PRIMARY LEGISLATION, THE EPSR ACT 2005
RULES
REGULATIONS
ORDERS

16. 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

17. Roles OF AND for Engineers
15th - 16th April 2009
Roles OF AND for Engineers
ROLES OF ENGINEERS
DESIGN
CONSTRUCTION
MAINTENANCE
MANAGEMENT
SUBJECT MATTER EXPERTS

18. 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

19. 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

20. 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)

21. 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

22. THANK YOU FOR LISTENING