nerc powerwatch october 2014

A PUBLICATION OF THE NIGERIAN ELECTRICITY REGULATORY COMMISSION NERC Vol.2 No. 1

JULY - SEPTEMBER, 2014

Quality Service, Customer Care

The Trend In New Electricity Market

We Expect All Stakeholders To Play By The Rules

— Abba IbrahimManaging The New Challenges Of Financial Viability And Quality Of Service

Understanding Your

Electricity Bills

•Things To Look Out For

Relationship

Management

•The New Direction

For Emerging

Electricity Market

Electricity Fixed Charge

•All You

Need

To Know

FORUM OFFICES NERC ZONAL OFFICES

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• A production of the Jedidar Media Ventures, Tel:0805-3785900, E-mail: [email protected]

Editor-in-Chief: Dr. Sam Amadi

Editorial Board: Dr. Usman Abba Arabi

Maryam Yaya Abubakar

Patrick Ayendi

Tasiu Wudil

Abdulsalam Yusuf

Majiro Ahaneku

Emeka Onyegbule

Christiana Iliya

Contributors: Market Competition & Rates Division Eyo O. Ekpo

(Commissioner) Govt. & Consumer AffairsDivision. Dr. Abba Ibrahim

(Commissioner) Vivian Mbonu

Farouk Bello

Abubakar B. Maude

DooyumMchiaga-Tsavsar Renewable, Research & Development Division Abdulsalam Yusuf

Engineering, Standards & Safety Division Tasiu Wudil

ZonalOffices Mary O. Anavhe

(O/C,Zonaloffices) Livinus Ishaya Etsu

(North-Central) Michael Faloseyi

(South-West) Temitope Odubiyi

(EkoForumOffice) Adeola Shabi

(IkejaForumOffice) Ahmadu Zubairu

(North-East) Marcelina Abang

(South-South) Barnabas Azuwike

(South-East)

PowerWatch is a quarterly publication of theNigerian Eleectricity Regulatory Commission;Corporate Headquarters: Adamawa Plaza, Plot 1099,FirstAvenue,OffShehuShagariWay,CBD,P.M.B.136,Garki-AbujaTel: +234-5237546,523861,+234-9-6700991Website: www.nercng.orgEmail: [email protected]

Link us on & Follow us on @nercng

EDITORIAL TEAM

Effective Quality Management: A Necessary Ingredient For Optimal Performance, p8

Relationship Management: The New Direction For Emerging Electricity Market, p12

NERC Pays Courtesy Visit To Opinion Shapers, p23

Rebuilding Relationships With Power Customers, p13

NERC-CDS Group sensitisation Seminar Holds In Makurdi, p13

Electricity Fixed Charge: AllYou Need To Know, p13Corporate Briefs, p36

NERC Takes Consumer Sensitisation Effort To NYSC Members, p14Improving Service Delivery Through Better Customer Relations, p16

A New Dawn In Quality Customer Service ByDISCOs, p20

The New Electricity Market: Promoting Quality Of Service And Customer Care, p10 We Expect All Stakeholders To

Play By The Rules, p24ZONAL OFFICES: Bringing NERC Closer To The People, p29Ibadan Forum Office Clears 24 Complaints In 6 Sittings, 4 Hearings, p29Understanding YourElectricity Bills: Things To Look Out For, p22

z (L-r) Vice-Chairman, NERC, Dr Muhammed Lawal Bello, Chairman/CEO, Dr. Sam Amadi, Minister of Power, Prof. Chinedu Nebo during the minister’s working visit to the Commission recently

POWER WATCH / THIRD QUARTER2014 3

CONTENTS

Background to the reforms:

At the return of democratic governance in Nigeria in May 1999, electricity services were so poorly, corruptly and unstrategically administered that

it yielded a meagerly peak output of 1200MWs. With a conservative headcount then at 150 million and an under supplied heavy industrial base which included steel mills, the advent of democracy apparently worsened the groans over erratic power supply, and then, the new government decided to act.

A committee was, thus, set up in 1999 to find a funda-mentally lasting solution to the power crisis in the country. The committee conducted a holistic policy, legal and regu-latory review of the sector and in 2001, submitted its policy document report titled, the Nigerian Electricity Power Policy (NEPP). The NEPP, in prescribing far sweeping changes to all ends of electricity business in Nigeria, faulted and con-demned the existing structures. It argued that the stagnation, incompetence and confused state of the industry were as a result of the Federal Government of Nigeria (FGN) being responsible for policy formulation, regulation, operation and investment in the Nigerian power sector. The report out -rightly condemned the regulation of the then sector which was done through The Federal Ministry of Power (FMP). It also denounced sectoral operations as was carried out by the National Electric Power Authority (NEPA), a wholly state owned enterprise (SOE) in charge of generation, transmis-sion and distribution.Strategizing our action plan: Pre-privatization and post-privatization actions for a financially viable NESI

The foregoing background gives the context, and puts into perspective, the discourse in this paper, which explores the annals of the wholesale radicalized reforms we have pur-sued since December 2010. In fairness, the EPSR Act 2005 that established the regulatory body has given us indisputable powers to drive the changes. This helps in ultimately settling the nerves of the financial world and sector investors. In turn, calming these worries buys us a little window of time to tackle amongst others, our biggest challenge: delivering a

financially viable and remarkably qualitative industry. Devel-oping financial independence ultimately involves painstaking planning, strategizing and doing things differently.

While focus and studies have often remained on the depth and practicality of the independence of newly estab-lished electricity regulators in Africa, this study looks at a regulator’s steps in driving for financial sustainability of the sector. This is because it is financial autonomy that enables true independence. Financial viability of a power sector de-rives from improvement of quality of service. On the other hand, the desired service improvements for the power sector will not happen except we are able to improve the regulatory landscape so as to enable confidence and ease of entry of investors. This calls for fundamental institutional change.Restructuring as a starting point for financial viability:

At NERC, there is a working understanding that an open, non-discriminatory access to the transmission and grid systems are a prerequisite to new entrants and technologies’ ability to compete effectively. We have, thus, deployed regu-latory instruments to ensure that open access to transmission facilities and the grid are guaranteed, and no one genera-tor or distributor should enjoy discriminatory treatment or market power. The simplest way to achieve these objectives is to restructure the industry and this was an early step in the reform process. The old vertically integrated monopoly industries have been vertically unbundled. Generation has been separated from transmission and distribution, which are then operated as separate, independent entities. Secondly, there has been horizontal unbundling, where generation has been split into a number of competing entities that generate and supply to distribution companies.NERC’s strategic plan for institutional rebirth:

Effecting institutional change in an organization estab-lished by government and whose administrators are govern-ment appointees requires bravery as resistance to change is understandably high. To achieve change, we had to design and implement a simple five-step change process.

Step 1: Determine the Goals; Step 2: Identify Rules,

Managing The Challenges Of Financial Viability And Quality Of Service: The New Nigerian Electricity Supply IndustryBy Dr Sam Amadi

POWER WATCH / THIRD QUARTER20144

FROM THE CHAIRMAN’S DESK

Roles, and Tools; Step 3: Develop an Action Plan; Step 4: Implement an Ac-tion Plan; Step 5: Measure and Eval-uate.Step 1: Determining the goals

The first step was to define the regulatory body’s goals. That is, decid-ing what outcomes are required of the new industry we are nurturing. What are the purposes for the establishment of NERC? What are the reasons for and expected outcomes from the un-bundling of the erstwhile vertically structured industry? Why and where did the old industry go wrong, since a lot of state operated power sectors are thriving? Our answers pointed to the fact that if we desired a different out-come from the new process, we were going to change organizational behav-iour. The ultimate goal was to change NERC as an organization to enable it change the emerging power sector it is to regulate. Part of our goal was turning NERC into a learning institu-tion, and in the process, awakening the learning spirit in individual staff through programmes like; Chair-man’s Brownbag, Distinguished Visitors Programme, internation-al and local trainings, sponsoring staff to workshops and seminars, etc. The next step was to inter-nalize professionalism, transpar-ency and international best regu-latory practices. For instance, our internal process for procurement has become so transparent that it became adjudged by internation-al monitors as the best procure-ment process of any institution in Nigeria. The Nigerian federal law making house also rated us the most “Freedom of Informa-tion” compliant government agency in the country. Our customer care process was also compellingly strengthened and we ensure that our rule making pro-cesses are very public engaging. Finally, most crucially and most herculean was the goal of making the regulatory body financially self sustaining. Step 2: Identifying institutional change rules, roles, and tools:

The next step was to analyze the context within which these goals are to be achieved. Key here is identifying the core sectoral rules, roles, and tools

that influenced the mannerism of the old power sector being exited. The idea here is to ensure that such are remedied and made capable of positively steering the emerging industry. Here, the rules of the sector, including regulatory rules and codes were reviewed and modified to make them suitable for a contempo-rary power sector. The roles of all po-tential stakeholders were analyzed. All our service provider licensees such as: Market Operator, Systems Operator, Transmission Company, Interim Bulk Trader, Electricity Liability Manage-ment Company, etc, were drawn close to our processes and given a sense of value, and that way, they were invaria-bly primed and compelled to subscribe to our institutional change plan. There was also the need to ensure that our goals are properly keyed into the objec-tives of the reform agenda. We, thus, set our sector wide goals as: improving efficiency and performance, ensuring transparent and responsible manage-ment, limiting political interference through eliminating government’s

involvement in utility management. Others include: the promotion of pri-vate sector participation, promoting drastic improvement in management and technical operations across the en-tire value chain. For those institutional stakeholders outside our licensing pur-view - the gas company, Ministry of Power - we have subtly wooed them to change.

At the regulatory body, despite our current weak financial state, there is a strong desire to update workplace tech-nologies, systems, and processes such as electronic registry, Enterprise Re-

source Planning (ERP), online library, a laptop for every staff, computerized clocking machine, etc. The regulatory advances as being pursued by NERC are to ensure:Financial sustainability and qualitative services: Ensuring long-term sustainability of the ser-vices is contingent on the availability of resources to fund the operation, maintenance and investments that are required to improve and expand the services to existing and future consum-ers. Therefore, utilities need be assured a predictable stream of financial flows that will cover the operational expend-iture (OPEX) and capital expenditure (CAPEX) associated with their oper-ations. Appropriate macro-economic regulation must nurture a positive in-vestment atmosphere in the industry, it should ease access to financial resourc-es and reduce the cost of capital and this leads to consumers’ satisfaction.

It is through attaining economic efficiency that we can achieve sustained

minimal tariffs and attendant measured qualitative service. This indirectly provides con-sumers with incentives resulting in optimal usage of the services. Ideally, competition is the most effective means of promoting economic efficiency. However, in our present state, the market is not mature for competition, and therefore, efficiency incentives are delivered through a variety of institutional and regulatory mechanisms, such as allowable returns, rebates, etc.Safeguarding quality of ser-vice delivery: The adequacy or otherwise of public goods pro-

vision including utilities is measured against quality of service delivery. In our new industry, it is, therefore, im-portant to ensure that tariff changes are properly tuned to change in the quality of service. This balance can be obtained only with the development of a sound KPI index for quality of service regulation. NERC’s Quality of Service (QoS) framework encompasses a set of procedures whereby parame-ters of quality standards are clearly defined and subsequently monitored and enforced via a system of penalties

❝Here, the rules of the sector, including regulatory rules and codes were reviewed and modified to make them suitable for a contemporary power sector. The roles of all potential stakeholders were analyzed.❞



and incentives.Expanding accessibility: Promoting the universality of electricity service in Nigeria is a key part of our viability strategy. However, evidences reveal that the norm is to focus on affordability, that is, service those who can afford it, rather than needs assessment. We support the development of reg-ulatory incentives, mini-independent embedded generation and transmission services that can serve stranded and far flung ends of the country. To this effect, our REFIT is very flexible and favourable to investors. We are also flexible with our licensing conditions to attract electricity investments in rural communities. We eagerly give all necessary support to would-be investors to enable them satisfy their foreign partners’ conditions. Our strategy is yielding high dividends presently as testimonies indicate.

Roles delineation: Successful electricity market trans-formation requires a combination of efforts from various players. Key to reform success is to carefully separate the roles of policy formulator, regulator, entrepreneur and other key stakeholders like the gas regulator. Under the out gone monopoly model, the state combined a variety of roles in providing electricity services. This combination of roles cre-ated an operating environment characterized by insufficient tariffs, soft budget constraints, weak efficiency incentives, and low accountability. This situation has now been remedied through the clear definition of every role and allocating it to a distinct and appropriate institution. Government, therefore, has retained responsibility for policy formulation, while the newly established NERC, a public sector body, will imple-ment the regulatory regime, even as the service providers are now left with a purely entrepreneurial role.

Step3: Develop a sustainable institutional change action plan

Having set our goals, and having realized that their ac-complishments are dependent on institutionalizing change, it became necessary to draw up an action plan to ensure effec-tive implementation of the goals. The action plan is tailored to target specific areas of our sector operations and upgrade their efficiency so as to support financial viability and quality of service. To this effect, there is a strong emphasis on trans-parent procurement, waste elimination, customer care, doing more with less and top notch professionalism. Our action plan also takes into account the need to review and revise our strategies in the long-term. The plan is finely tuned to hone in on the objectives set out for our Commission; foremost, it aims to create and preserve an efficient electricity market, while ensuring optimal utilization of scarce resources, and also to ensure adequate electricity supply and at fair prices. Part of our focus is also to ensure safety, reliability, adequa-cy and affordability of electricity. Our regulatory tools are strategically primed to ensure promotion of competition and private sector participation, while also establishing appropri-ate operating codes and standards. Achieving all these above entails effective and rigorous monitoring of the operations of the electricity market.

The action plan, therefore, includes appropriate evalu-ation metrics for reviewing success rates in several indicators.

The result has been a high output rate at various spheres of our administration. Currently, at a relatively modest staff rate of less than 120, we execute an unbelievable amount of tasks ranging from administrative, legal, licensing, en-forcement, monitoring, codification, standardization, quality benchmarking, customer care, rate making, etc.

Step 4: Measuring and evaluation:Writing a good action plan is one thing, implementing it

is another. NERC’s institutional change principles and meth-ods have been effectively incorporated into action plans; its implementation style is also sensitive and suitable to the or-ganizational context in Nigeria which is our primary target.

How the change strategy is implemented is as impor-tant as what is being implemented. The lifestyle examples of the implementer are equally important. For instance, if the employees believe that the leadership which tasks them on change, talks the talk, but does not walk the walk, then the plan is basically dead on arrival. In this case, the action plan is two-pronged, that is, change the regulator to change the sector. A reward and recognition scheme is equally important to encourage behavioural change.

Success doesn’t come easy:Having, at the early stages, put these sector- wide change

mechanisms in place, in order to attract and keep investors by breathing confidence in the system, the next but tougher challenge is the deployment of regulatory instruments so as to make the sector financially viable. The steps involved here were identified to span a broad spectrum and also involved both endogenous and exogenous factors which were outside the regulator’s control. For instance, we identified stemming the high rate of aggregated technical commercial and col-lectible (ATC&C) losses as a first step towards improving the prospects of the industry, but we also realized that the problems of ATC&C are distinct and could only be improved through differing measures.

Technical losses: The technical losses stem from system weaknesses and as such, the weaker a transmission system, the higher the percentage of this loss will remain. The gov-ernment administered NEPA/PHCN was designed to op-erate under sub-optimal transmission network and in the process incur an unsustainable high percentage of technical losses, translating to imbalances in sectoral book-keeping with a resultant huge debt profile circulating across the entire value chain. The new Nigerian electricity model as regu-lated by NERC, on the other hand, depends on efficiency. Efficiency in transmission can only come through extensive improvements and repairs and this takes time. Through the journey of this power sector reform, two governments have lapsed in Nigeria, and they had lesser degrees of enthusiasm towards the reform. It is the current government that has arisen to the challenge of reeling back years of endemic transmission neglect, appointing foreign experts (Manitoba Hydro International, Canada) to manage transmission, fund-ing and completion of long overdue transmission projects as well as commencing execution of new transmission pro-jects. Reductions in the technical aspect of the losses squarely depend on the escalated improvement works currently on



going. We at the regulatory end are doing our bit through the licensing of the new Transmission Company of Nigeria. Our terms, conditions and expectations for the new industry are spelt out in the license agreement, and they are quite challenging. We also have developed our grid codes, transmission standardization and monitoring meas-ures to avoid implementation lapses. The Transmission System Provider, the operator of the Nigerian Electricity Market and the Transmission Compa-ny of Nigeria are all licensees of the regulator and they are under severe and mounting pressure to rehabilitate and stable the existing network, while mak-ing further expansions, so as to provide capable transmission capacity for the impending explosion in generation.Non technical losses: This comes in the form of theft, such as, meter tampering, by-pass, illegal connec-tions, non-payments, etc. The rate of this form of losses has been scandal-ously high, despite the regulator’s de-ployment of several intervention pro-grammes and policies. This is because, the NEPA/PHCN business module was highly dependent on budgetary hand-outs, thus relegating collectibles and its attendant metering strategies. This led to an over reliance on the estimation of customers’ bills as the business logic behind accurate metering did not ap-peal. At the onset of the reforms, when NERC was regulating government companies resulting from the unbun-dling of NEPA, it was difficult and in-effective to wield the regulatory whip against them. This, thus, frustrated our different measures at metering Nigerian consumers under the PHCN structure. Under our Multi-Year Tariff Principles, meters are disbursed free and not to be paid for directly; however, our market is still weak and we, thus, had to in-stitute pragmatic regulatory incentives to spur the fast spread of metering. To this effect, we first put pressure on dis-tribution utilities by declaring it illegal for a customer to remain unmetered for three months.Dealing with by-pass: Smart me-ters to the rescue: Having been ad-equately empowered by provisions of Section 32, Subsection 2b and Section 81, Subsections 1c and 2 of the EPSR Act, 2005 to address the problem of

metering in the NESI, we found that detecting rogue wires siphoning away power illegally is just one tedious step, given the density and spread of urban and semi-urban areas in Nigeria. It is also potentially confrontational as some workers have been injured in encoun-ters with angry customers. The task is even heightened by the fact that there is erratic service everywhere. Electrici-ty theft is rampant across much of our network, so much so that technologi-cal devices that can interact between homes and the DISCOs’ monitoring board seem the only solution. From the customers’ perspective, gauging from the numerous complaints, we observed a high level of customer dissatisfaction with the way they are billed by the DISCOs. The DISCOs also could not efficiently bill and collect their revenues legitimately except through ‘estimated billing’. The problem was compounded by the fact that even though we made provisions in MYTO 2, collections have not been sufficient to allow for metering of customers, partly due to increase in operational expenditures (OPEX, par-ticularly salaries). Targeted and phased subsidies as promised by government were also not forthcoming while exter-nal financing remained a problem.

To combat these problems and avoid high rates of confrontational encounters, we have been encourag-ing our utilities to embrace smart me-ters. They cost about N25,000 ($150) for single phase and N45,000 ($400) each for three phases. This includes hardware, communications software and installation, and enables utilities monitor customers’ usage remotely and in real time. The introduction of smart meters will, to a large extent, foolproof in an all-round manner, the theft of electricity by improving sur-veillance capability, remote switching, energy accounting demand and supply side management, loss control, remote collection of real-time data for prompt billing and analysis. Achieving all the above will ultimately and significantly improve the financial state of the mar-ket by guaranteeing cash flow through popular PPM functionality (solving the problems of inflated billing efficiency and poor collection efficiency). PPM’s all-round popularity stems from the fact that they enable customer control their

budget and enhance decision making, thus putting them in charge at demand end.

Previously, when we regulated the 11 government’s holding distribution companies, all our efforts at getting the customers metered were either techni-cally or out-rightly frustrated. This was because of their managements’ prefer-ence for the fraud-prone ‘estimated bill-ing’. NERC’s proof of Nigerian elec-tricity customers’ preference for smart meters was the huge interest and up-surge in demand that greeted our CAP-MI programme. Customers subscribing to the CAPMI scheme are to be provid-ed meters within a stipulated time frame (say, maximum of 45 days from date of payment). The advance-payment cus-tomers are repaid by the DISCO over time through reduction in the amount billed for the Fixed Charge. The reduc-tion in billing shall be a percentage of the Fixed Charge, (e.g. 40% of the Fixed Charge of N500 for an R2 customer). For instance, the customer will be billed N300 per month for Fixed Charge in-stead of the N500 provided in MYTO until the advance is fully repaid. The customer will also be entitled to a return on the amount advanced. Such a return shall be applied by appropriately extend-ing the period of reduction of the Fixed Charge duration of repayment, and this will depend on the cost of the respective meter and the amount of reduction in the Fixed Charge.

With the challenge of NTL reduc-tion, having moved from the streets to e-solutions, NERC has been gearing and priming the new NESI for a seam-less transition to AMI. While pursuing a policy of 100% metering of consum-ers of electricity in Nigeria, NERC is also factoring how to replace already analogue, faulty, and non interactive meters already installed in homes. We are sure to get there, as our metering regulations, when fully implemented, will realize this goal. The key to achiev-ing this is to ensure that DISCOs are dis-incentivized from allowing non in-teractive meters in their jurisdiction. There are strong early signs that the new private participants who acquired the former government-owned distri-bution companies are eager to reduce NTLs within their respective domains

Continued on page 34POWER WATCH / THIRD QUARTER2014 7


A prepaid meter was installed in Chene’s residence, but the euphoria of being the recipient of this much-treasured asset dissipated when, in the subsequent recharge, he

found that his energy receipt bore the name of a different person unknown to him.

Follow up visits to relevant staff of the DISCO left him frustrated as he went from the business unit to the meter supplier and back to the business unit and back again, to no avail.

Bitrus on the other hand, is a con-tractor who takes pride in planning and installing alternate source of power to his clients. He, however, encountered some challenges in his last job because, after he installed the batteries, he re-alised that his contract award letters did not indicate that the client has its own specifications which were the product of diligent in-house brainstorming/group work by subject experts. The parties realized, rather late, that the deliverables in some respect did not meet his customer’s expectation, and reworks, which cost additional expenses on both the side of the contractor and his customer, became necessary.

The experiences of Chene and Bitrus which are examples of the many experiences of customers and service providers in the NESI buttress the argument that quality produces value, and bad quality increases costs, low morale, low customer

satisfaction, risk, rework and schedule delays, while increase in quality leads to increase in productivity, high morale, increased customer satisfaction, increased cost and schedule efficiency and decreased cost risk. It further confirms the argument of quality expert, Edward Deming, that 85% of quality problems are at-

tributable to the management environment and the system in which the team works. In both scenarios narrated above, the delivera-ble/product cannot be said not to have met quality standards because quality is defined as the ‘degree to which the project/product fulfills its requirement’.

However, the fact that requirements stat-ed in the contract have been met does not imply that the product, said to be of quality, does not necessarily imply meeting customer expectations/needs. Service providers in the NESI, in their bid to maximize profit and

reduce/eliminate waste which could result from costs of con-tract reviews, redo/repeats, cancellation, etc, as well as changing negative customer perception, must, therefore, plan quality and not ‘inspected-in’ quality to projects.

As the interim period draws to a close, the challenges before the regulated entities include how to effectively determine ac-ceptable quality standards for deliverables/products which satisfy customer needs and ensure that such requirements are fulfilled to a high degree. This objective could be achieved by reviewing the organisation’s current quality planning as well as monitoring

Effective Quality Management: A Necessary Ingredient For

Optimal Performance By Temitope Odubiyi

z A 330kv transmission line in Calabar


QUALITY MANAGEMENT

❝ As the interim period draws to a close, the challenges before the

regulated entities include how to effectively determine acceptable quality standards

for deliverables/products which satisfy customer

needs and ensure that such requirements are fulfilled

to a high degree.❞

and controlling processes, with a view to tailoring them to project management best practices which implies establishing a system/methodology that effectively identifies specific standards for all deliver-ables. It should also determine what work is required to meet these standards, level of quality effort appropriate for the needs of the project , scope, balance quality with other constraints, monitor and control change and measure performance, etc.

Quality management processesQuality management entails gathering

requirement/scope statement; creating and following policies and procedures to ensure that a project meet the defined needs it was intended to meet; ensuring that the project is completed with no deviations from the project requirements. Though there are many qualities, broadly speaking, there are three main quality management processes for optimal perfor-mance: planning quality, performing quality assurance and performing quality control.

Quality planning process: Quality plan-ning, therefore, helps determine, in advance, what acceptable quality is and how it will be measured, determine what to be done to ensure that requirements are met. It focuses on defining quality for the project and identifying how it should be achieved. Quality planning effort, ideally, should be guided by the project

scope, schedule and cost baselines as well as the risk register, because these documents contain stakeholder information, major de-liverable thresholds and acceptance criteria. Planning process amongst other things takes into cognizance the organization’s existing standards and practices, improving on them

where necessary. From a project manage-ment point of view, the output for quality planning process is the quality management plan which is a subsidiary document to the project management plan.

The quality management plan contains the following information:

How is quality planned?: Quality practices and standards apply to the pro-ject; who will be involved in the project and their specific duties; review of earlier decisions to ensure that they are correct;

frequency of meetings to address quality; reports that will address quality; parts of deliverables to be measured and when, etc

Prior determined quality metrics: Decision on metrics to be used?

Quality checklist: List of items to inspect, list of steps to be performed or picture of items to be inspected with provi-sion for remarks on defects. This checklist developed during planning would be used during quality control and assurance.

Process improvement plan: This is aimed at continuously improving efficiency and preventing problems.

Updates: Since planning is iterative, good plans provide for regular updating of plans resulting to changes effected during execution. It is important to note that it is difficult, if not impossible, to measure what has not been effectively planned.

Quality assuranceThe project management plan is not

a single document which presents cost profile and timeline, but a detailed formal approved document that describes how a project is planned, executed, monitored and controlled.

• Temitope Odubiyi writes from Eko Forum Office, Lagos

z Chairman/CEO, NERC, Dr. Sam Amadi (3rd l), Vice-Chairman, NERC, Dr. Muhammed Bello (2nd r), with members of Chinese delegation and their Nigerian partners during a working visit to the Commission.


QUALITY MANAGEMENT

❝ Quality planning effort, ideally, should be guided by the project scope, schedule and cost baselines as well

as the risk register, because these documents contain stakeholder information,

major deliverable thresholds and acceptance criteria. ❞

Before the privatisation of the nation’s power sector, there has been a loud outcry over poor service quality and shab-by customer treatment for many years in the electricity

companies. Now, with the privatisation of the electricity com-panies, key changes which will have a far reaching impact for all of electricity consumers are being skewed in favour of quality of service and customer care.

For the new privatised electricity company to do well, there is the inevitable need for a high and consistent quality of service which is key to any business success. This comes against the reality that high service quality promotes customer satisfaction and customer satisfaction has a direct link to business revenue. The main focus of the new owners, therefore, should be to achieve a level of quality in all their services that satisfies customer expectation.

To many organizations, customer care is one of the most chal-lenging and neglected areas of management, and for customers, the quality of customer service determines whether to buy, or particularly, to remain just a customer.

In the electricity market, quality relates to the nature and quality of service provided to electricity customers.

There are several ways in which the new privatised companies can promote quality of service and customer care. These include:

Developing a service cultureOne of the ways that can be used to improve the quality of service is by developing a service culture. A service culture re-

volves around the appreciation of good service and offering good service is considered a natural part of life in any organisation. Some of the values that are embedded in a service culture in-clude, but not limited to; joy, teamwork, integrity, excellence, social profit, innovation and respect among the employees in the company. Developing a service culture, therefore, can improve performance and create competitive advantage. Although this may take a long time before it is embraced by the employees, there is the desirability now to take an action.

Hiring the right peopleThe right people in the companies can help improve service quality. Management should put emphasis on the hiring process and search for employees with the right qualities to ensure that they are able to deliver the best. Marketing principles should be put in consideration when hiring and selecting talented em-ployees instead of focusing only on the education qualifications and experience. This would help in ensuring the highest delivery

❝ For the new privatised electricity company to do well, there is the inevitable need for a high and consistent quality of service which is key to any business success. ❞


QUALITY SERVICE

The New Electricity Market:

Promoting Quality Of Service

And Customer Care By Adeola Shabi

• A NIPP power plant in Calabar

of standards rooted in employees’ enthu-siasm about service delivery and meeting customers’ expectations.

Developing the employeesManagement can embark on training and developing employees as a way of equip-ping them with the skills they need to offer high service quality. Once the employees have the skills, they find their work more rewarding and, therefore, more motivated in improving their performance. Their ser-vice delivery improves and they serve the customers even better. Once the employees are developed, companies should seek to re-tain them by understanding their needs and addressing them. Employees should also be treated the same way as customers by trying to understand them the same way you do with the customers. Additionally, regular studies should be carried out on employees to try and understand the issues they face at the workplace, thereby involving them in getting the solutions to these issues.

Empowering employees Management can empower employees to facilitate and improve their levels of ser-vice delivery and become more attentive towards the needs of customers. This tends to raise their confidence levels and helps them enjoy their work as it becomes more challenging and interesting. Involving them in the decision making process allows them to contribute more and develop ideas that help improve customer satisfaction.

Providing support systemsManagement should also set up support systems that will encourage employees to perform their very best. The support sys-

tem should be more focused on the front line staff that deals with customers more frequently. However, the back line staff should not be forgotten or ignored in the

process. Team work is essential in provid-ing these kinds of support systems. Em-

ployees should be encouraged to support one another in their different roles within the company. Rewarding the employees is one of the best ways of providing sup-port to employees after they have achieved their best performance. The rewarding systems should be focused on rewarding employees for their service delivery. By regularly measuring and rewarding the performance of the employees, manage-ment can help retain them, especially, when the rewarding systems are fair.

Delight your customers with exciting momentsNothing is more powerful than going out of your way to give customers something

that they were not expecting or anticipat-ing from you. This will help to raise the company’s creditability within the local and on-line communities, through posi-tive feedback and referrals.

Having regular internal customer service sessions with cross sections of staffStaff are usually at the sharp end, and they’ll have lots of ideas on how things could be improved. Encourage them to think of what can be done to provide the ‘wow factor’; use the creativity of the group to brainstorm and think outside the box for less obvious suggestions.

Setting and communicating clear standardsThere should be setting of standards in terms of quality, accuracy, behaviour, appearance and good customer service. Staffs need to know what you expect from them. Ensure that the service is consist-ently good, in every location, from every-one, every day.

Tracking and analysing errors and complaintsManagement should get to the root cause of critical developments to find out what’s going wrong and why. Involve people in improving processes to prevent recurrenc-es and also undertake remedial training and coaching.

The central aim of effective customer care is retaining customers; retaining customers, enabled by excellent customer service, pro-duces many positive benefits for the com-panies aside from the obvious revenue and profit results. Some of the benefits include:

� Enabling easier growth, indirectly and directly, for example, by sustaining healthier volumes and margins, and by business expansion from word-of-mouth referrals.

� Improving staff morale and moti-vation. No one enjoys working for a company that feels like a sinking ship, or where stressful arguments or pressures prevail. When customers are happy, all the staff are happier too and more productive.

� Reducing customer attrition and upset that naturally reduces litigation and le-gal problems, from customers.

� Having a culture of delighting and re-taining customers which fuels positive publicity and reputation in the media.

• Adeola Shabi writes from Ikeja Forum Office, Lagos

❝ Management can empower employees to facilitate and improve their levels of service delivery and become more attentive towards the needs of customers .❞


QUALITY SERVICE

• A power distribution asset

The relationship between the Ni-gerian electricity user and the provider is not at the best level

presently, and this is primarily due to the unpleasant way the electricity user has been treated over the years.

One of the primary goals of the Power Sector Reform is, thus, to pro-mote the quality of service and improve customer care through relationship management.

It would be nice to define the in-dividual words used in the theme of this edition of the PowerWatch Mag-azine – Promoting Service Quality, Customer Care: The New Trend In Nigeria’s Blooming Electricity Market. This would serve to show how simple the issue of customer satisfaction as a result of relationship management can be.

The definitions quoted herein are from the Longman Dictionary of Contemporary English. Promote: To help something to develop or increase.Quality: How good or bad something is.Customer: Someone who buys goods and services from a shop, company, etc.Service: A particular type of help or work that is provided by a business to customers.Care: Keep something in good condition; the process of doing things to keep something in good condition and working cor-rectly; careful to avoid damages or mistakes; or to spend a lot of time and effort making sure that something is perfect. Customer service: is that part of a company or business that deals with questions, problems, etc, that customers have.

It is important to note that the word ‘customer’ refers to someone who buys goods/services from a business repetitively and not one-off purchase.

Putting together all the words above, ‘promoting quality of service and customer care’ would, therefore, simply mean ‘to increase the good work that is provided by a business to customers who buy goods/services, ensure that they are treated in a manner that avoids mistakes/errors, and putting in place measures for efficiency in resolving their problems and questions, etc’.

Quality of service can, thus, be said to be a measure of how good or bad a job is carried out in rendering/providing a service to a customer.

The old Nigerian Electricity Market was characterised by a number of unpleasant practises, one of which was the poor attitude of the staff of the electricity service provider’s staff to its customers. However, in the new Electricity Market, it is an-ticipated that quality service will be one of the ways by which the electricity consumer will feel the impact of the turnaround being implemented.

A few simple ways can be used to measure the efficiency of service provided and show how much a customer is valued by the level of care shown him by the service provider. The electricity service providers, therefore, need to improve on a number of are-as in order to win the confidence of a disillusioned electricity user.

• The number one method by which customer service can be improved is by COMMUNICATION. The average electricity user does not want to be burdened by the technical complexities of electricity generation, transmission and distribution. He just wants to turn on the switch and see the lights come on. However, he needs to be engaged in some sort of conversation better called ‘customer care’. Technical jargon may only be seen as deliberate confusion and lead to or breed mistrust.

• And secondly, COMPLAINTS RESOLUTION; if com-plaints are promptly responded to and efficiently handled, even in the face of inadequate supply, the improvement in ‘customer care’ would go a long way in building the confidence that the electricity user has in the Distribution Companies (DISCOs), the Regulator and the Federal Government. A changed rela-tionship will definitely result in a more satisfied customer who would gladly pay for services rendered; the DISCOs would also be under less fire, resulting in a more conducive and peaceful environment in which they would operate.

The electricity user would be ecstatic if he is engaged in productive communication and his problems are speedily dealt with. The Distribution Companies, being business oriented, know that ‘Customer is the King’ and are definitely working towards reaching this point; the Commission is on its toes to make sure this is achieved.

The overall result would be a properly managed relation-ship which benefits all players.

• Dooyum Mchiaga-Tsavsar is of the Govt. & Consumer Affairs Division, NERC

Relationship Management: The New Direction For Emerging Electricity MarketBy Dooyum Mchiaga-Tsavsar

•NERC recommends the use of LED bulbs in the emerging electricity market


RELATIONSHIP MANAGEMENT

FACTSHEET ON ELECTRICITY FIXED CHARGE What is Fixed Charge?

The Fixed Charge is an element of an electricity customer’s electricity bill that is charged on a monthly basis. The Fixed Charge is intended to allow for the recovery of the costs associated with the fixed or permanent investments required to generate, transmit and distribute electricity.

What makes up the Fixed Charge?

1. Fixed or permanent investments, e.g. poles, cables, transformers, etc.

2. Cost of maintenance of the fixed or permanent investments and

3. The capacity charge paid to generating companies, as long as they are available to generate.

The fixed charge is a universal best practice and is not peculiar to Nigeria. It is to be borne by elec-tricity customers at all times, once they are connected to supply. It is not tied to consumption. Fixed or permanent investments need to be made and need to be paid for and maintained. Electricity customers need to have the required infrastructure that will enable them enjoy electricity, either on demand, and when it is available.

Imagine a country home that the family visits only during major holidays. The home has been built and finished with appliances that are never used unless the family visits during the holidays. It will not be possible for the utility company to anticipate when the family will be visiting, and subsequently, rush to install the required infrastructure that will allow the family enjoy electricity. Likewise, it will not be feasible for the utility to remove the infrastructure after the family must have left at the end of its holiday.

The electricity industry is very capital intensive, and is understandably difficult to enter or exit from. Generating companies bear the brunt of this huge investment and for this reason, they should be given some kind of comfort and guarantee that they will be allowed to recover their reasonable costs. This cost recovery includes circumstances where they are unable to generate and distribute power due to reasons beyond their control. Such reasons are typically the unstable nature of the transmission network that sometimes forces generation stations to shut down on account of the network’s inability to carry the electricity generated.

When power improves and demand is being met, there may be instances where generating stations are asked to shut down due to low demand in given periods. In such circumstances, where the gen-erating companies are perfectly able to supply electricity, but have been asked to shut down, they will still need to be paid, at least, the price of constructing the power plant. This is the Fixed Charge.

The fixed charge is, therefore, necessary to ensure the sustainability of the electricity subsector. Dis-satisfaction of the customers is understandable as there is a severe shortfall in supply, thus neces-sitating incapability to meet customers’ demands. This was considered in arriving at what electricity customers currently pay today, which is only a third of what it should be. It was made so, in order not to overburden customers.

However, with sustained improvements in service delivery, payment of fixed charge will be better accommodated by customers.

NIGERIAN ELEECTRICITY REGULATORY COMMISSION;Corporate Headquarters: Adamawa Plaza, Plot 1099, First Avenue, Off Shehu Shagari Way, CBD, P.M.B. 136, Garki - Abuja

Tel: +234 - 5237546, 523861, +234 - 9 - 6700 991Website: www.nercng.org, Email: [email protected]

13POWER WATCH / THIRD QUARTER2014

PUBLIC NOTICE

One of the Commission’s many roles as mandated by Sec-tion 80(1)g of the EPSR Act is to disseminate information to all electricity consumers and engage them through any

medium which consumers can be reached.

In furtherance of this mandate, the Makurdi Zonal Office of the Nigerian Electricity Regulatory Commission, in conjunction with the Government and Consumer Affairs Division, held a one-day sensitisation programme for members of the National Youth Service Corps (NYSC) currently serving in Makurdi, the Benue State capital.

The event which took place at the Steam Hall, Opposite JAMB Office, Makurdi, had numerous guests in attendance. Notable among them were the Benue State NYSC Coordinator, Mrs Nnenna Ukonu; the NYSC Zonal Inspector; the Community Development Service (CDS) Supervisor and other staff of the NYSC.

There were participants from the Standards Organisation of Nige-ria (SON); Ministry of Works, Housing and Urban Development, Makurdi; the Nigerian Voice Newspaper; the Federal Road Safety Corps (FRSC); the Business Managers from Jos Electricity Distribu-tion Company (JEDC) - Makurdi Business Unit, Engr. J.O. Emeruwa; Otukpo Business Unit, Mr. Elijade Johnson and Gboko Business Unit, Mr. Dickson Orishedere; staff of the Joint Admissions and Matricu-lation Board (JAMB), Zenith Bank, teachers from secondary schools, members of the public, etc.

The NYSC in Benue State had initiated a Community Development Service (CDS) Group which is aimed at sensitising the general pub-lic on a number of issues, such as the use of drugs, patriotism and electricity. Although, at the moment, these three issues are lumped up together in one CDS group, the NYSC State coordinator, Mrs Nnenna Ukonu, informed the gathering that plans are on to quickly carve out the electricity aspect of the club and have it run separately

as a CDS group which will work hand-in-hand with the Commission, under the supervision of its Makurdi Zonal office to carry out enlight-enment in schools, markets and other such public places. This is worth emulating by other states and can become a formidable vanguard to propagate the activities, programmes and other unfolding mechanics in the power reform roadmap of the Federal Government.

The President of the NYSC Electricity CDS Group, Mr. Anyasi Peter, welcoming all those in attendance, gave a brief on the formation of the CDS group, its aims and roles which are chiefly enlightening elec-tricity users in Nigeria on all electricity related issues and the progress of the power sector reform. This was the reason for which such a sensitisation event, as was being held that day, was necessary.

The Benue State Director of the NYSC, Mrs. Nnenna Ukonu, in her address, said the NYSC was glad to partner with government agencies and parastatals in an effort to make Nigeria a better place. One of such ways, she said, was the educating of Youth Corps members on government’s efforts to address national problems and empowering them to carry on this information and disseminate it to the nooks and crannies of the country, especially in schools and markets. She pledged her support and assistance to the Electricity CDS group in carrying out its activities.

The following presentations by the Commission were delivered:NERC: Who we are – By Dooyum Mchiaga-Tsavsar (Mrs.)The Nigerian Electricity Regulatory Commission, its mandate and the EPSR Act, 2005, which set it up were introduced in this presenta-tion. It also explained the unbundling of the power sector into six generation companies, 11 distribution companies which have been privatised and one transmission company which is still government owned, but still being managed by a private company.

NERC Takes Consumer

Sensitisation Effort To NYSC

Members By Livinus Ishaya Etsu



Dooyum also delivered a speech on Energy Conservation and Effeciency.During this presentation, energy efficiency and conservation were defined to enable a clear understanding of the terms. Incandescent bulbs/lamps, compact fluorescent lamps and light emitting diodes were compared in a bid to showing their levels of efficiency and prove the need to switch to the more efficient ones.The participants were also enjoined to pur-chase only energy efficient equipment so as to practise energy efficiency in their use of electricity and to switch off all lights and ap-pliances whenever they are not in use.The presentation was also used to teach the audience the rights and obligations of elec-tricity consumers and the Commission’s com-plaints redress mechanism, while informing them of the establishment of the Customers Complaints Handling Forum, among others.

Health and safety in the use of electric-ity – By Engr. Abdulrasheed BusariThis presentation explained the occurrence of accidents in the use of electricity and how these accidents may be prevented.

A lot of data and pictures were used to show the mishaps that may occur in the use of elec-tricity, the importance of the use of personal protective equipment (PPE) by electricity workers was emphasized and everyone was warned to steer clear of live wires and report all faults to qualified staff of the electricity company.

The ‘standard clearances’ required in the location of buildings and use of equipment near power lines was also explained and par-ticipants were enjoined to obey these speci-fications, avoid illegal connections and keep fire extinguishers at homes and work places, as one can never tell when a fire outbreak may occur.

The Commission’s unscheduled visits for inspection to transmission and distribution companies were some of the ways in which Engr. Busari informed that the Commission monitors compliance.

The Credit Advance Payment for Me-tering Implementation (CAPMI) –By Engr. Ishaya Livinus EtsuThis presentation was used to explain the Or-der which the Commission had passed on the 13th of May 2013, to ensure the provision of meters to all electricity customers in order to eliminate or at least minimise the use of estimated billing and improve on revenue collection.The guidelines by which the scheme would be implemented were further explained and the participants at the programme were enjoined

to take advantage of the scheme and make sure they are metered. The President of the NYSC Electricity CDS Group, on behalf of the Youth Corps members, thanked the Commission for the wealth of knowledge they had received from the presentations.The highlight of the occasion was the in-teractive session when corps members and other participants sought the following clar-

ifications: • Why there is a mismatch between the

level of demand for electricity in Nigeria and the level of supply.

• Why there is low voltage/quality of power supplied sometimes.

• Is it economically wise to buy the expen-sive CFLs/LEDs as against the incan-descent bulbs?

• The explanation for the monthly fixed charge.

• Meters not being read and yet bills are religiously sent monthly, etc.

All their questions were answered by Engr. Emeruwa, the Business Manager for the Makurdi Business Unit of JEDC and Engi-neers Abdulrasheed Busari and Ishaya Livi-nus Etsu of NERC. At the end of the programme, the Commis-sion’s T-shirts, face caps and information mate-rials (flyers) were distributed to the Youth Corps members. They were expected to pass on the flyers to the public during their CDS days.

This partnership is an on-going one in which Youth Corps members posted to Makurdi who are members of the Electricity CDS group will be empowered with this knowl-edge. And with continuous updates from the Commission, this group will be a veritable tool for grassroots information dissemination. Through grassroots information dissemi-nation, the electricity user is made aware of his rights and obligations, even as the ser-vice provider would then become cautious, knowing that the electricity users’ ignorance is gradually being eliminated and, thus, there must be improvement in the quality of service and customer care in the Nigerian Electricity Market. In conclusion, it is apt to state here that cus-tomer satisfaction begins with having custom-ers who are constantly engaged, informed and empowered with knowledge.

• Livinus Ishaya Etsu writes in from

North Central Zonal Office of NERC ,

Makurdi

❝ During this presentation, energy efficiency and

conservation were defined to enable a clear understanding

of the terms. ❞

• NYSC membrs at the forum



Improving Service Delivery Through Better Customer Relations

Providing excellent customer service is essential to the long-term viability of every business in every sector, but even more so in electric utility companies, which

by their very nature, formation and composition show that they are long-term investments. It is a well known fact that the nor-mal recovery period of investments in electricity assets, which normally involve huge capital is 15 to30 years. Hence, electric-ity utilities need to focus on their customers, so they could be around for long and financially capable enough to consume power and pay, for the companies’ survival and growth.

It is pertinent to note, however, that because consumers of electricity seem not to have alternatives to supply other than from the Distribution Company (DISCO) serving their area, they are often taken for granted. With little or no option for the customer, it means coping with less than satisfactory service (Siyaka,2011), thus making it look like there is, therefore, no incentive to improve on the level of service available to custom-ers, since service costs money, and it seems they could get away with it, providing cheap poor services.

However, going by just the golden rule of “treat others as you would want to be treated,” there is the imperative for a careless attitude not to be taken towards the customer. It was the Great Mahatma Gandhi that said that, “A customer is the most im-portant visitor on our premises, he is not dependent on us; we are dependent on him. He is not an interruption to our work; he is the purpose of it. He is not an outsider in our business; he is a part of it. We are not doing him a favour by serving him; he is doing us a favour by giving us an opportunity to do so.”

Having envisaged the scenario of the possibilities of ineffi-cient customer service and gross abuse of the consumers, due to lack of alternative choices in electricity supply, the formulators of the Electric Power Sector Reform (EPSR) Act, 2005 have in Part ( iv) Section 80 (1-3) made provisions for Consumer Protection, in order to ensure that adequate, safe, reliable and qualitative electricity is produced and delivered to the electricity consumers across the nation. The latent object of these consumer protection provisions will be achieved by an excellent consumer service expected from the DISCOs.

An efficient and excellent consumer service is, therefore, imperative for the overall success of the DISCOs and the NESI.

1. Understanding customer needs, expectations and satisfaction

The customer is not a cold statistic; he or she is a flesh and blood human being with feelings and emotions. He is not someone to argue with or match wits with. He is a person who brings us his or her wants and it is our job to fill those wants, irrespective of the wants. The customer is deserving of the most courteous and attentive treatment we can provide. The custom-ers will come with different temperaments, irate or coolheaded and they need to be listened to. The customer has to be listened to, his views, feelings and emotions, read between the lines, behind the latency of his words, letters and remarks.

When taken for granted or treated badly, the customer reacts by giving negative publicity. Everyone knows how the old NEPA and PHCN fared with regards to customer satisfaction: they

By Abubakar B. Maude, FNSE

• A well-maintained switchyard at Ughelli Power Station

Introduction:


COVER

failed abysmally. Consumer satisfaction is, thus, conceptually defined as an evaluation symbolizing a consuming experience, re-sulting after a product or service has been used (Te-King, 2002). More specifically, it is the reaction between expectation and actual perception before, during and af-ter using the product or service. In a five scale Likert-like, close-ended, pre-coded “Electricity Consumers Satisfaction Sur-vey” done by a NERC Fellow, Professor Abdullateef and reported as Baseline Sur-vey of Electricity Consumer satisfaction, he observed that, for a monopoly product or service, low levels of consumer satisfaction will manifest in some form of reaction from the consumer in order to register their feel-ings. For example, for one of the Business Units surveyed, consumers reacted to poor satisfaction by displaying an unwillingness to pay their bills as shown in Table 1,where the consumers’ unwillingness to pay was up to 49.6%. This table is formed from an agglomeration of factors, such as per-ception of the respondents on accuracy of tariff (39.3%), accuracy of bill (43.6%), payment method (39.7%) and availability of payment facilities (22.8%), all shown in Figures 3 A,B,C and D below.

Figure (1) shows what happens to create a consumer satisfaction or other-wise, where the overall satisfaction of the consumer is based on inputs from value derived from different attributes of the product or service. For each attribute, there will be several other variables to be measured and the weighted averages of their agglomeration computed as the in-dex as shown in the Electricity Consumer

Satisfaction Model in Figure 2.• Figure 1: Consumer Satisfaction Chain

Productor Service

Attribute 1

Productor Service

Attribute 2

Productor Service

Attribute 3

Customer NeedsFulfilledQualityReliabilityValueFunctionPerformance

Customer NeedsFulfilledQualityReliabilityValueFunctionPerformance

PerceivedSatisfaction

CustomerSatisfaction

Post Purchase BehaviorsCustomer ComplaintsWord of Mouth

RepurchaseLoyalty

Name ofIndex

Un-weighted Index

WeightImportance

WeightedIndex

Satisfaction Index Group

Remarks

Accuracyof Tariff

60.7 0.9 54.63 Good

Accuracyof Bill

56.4 0.9 50.76 Good

PaymentMethod

60.3 0.8 48.24 51.30 Poor

PaymentFacility

77.2 0.8 61.76 Good

Clarityof Bill

51.4 0.8 41.12 Poor

• Figure 3(B) Respondents’ Perception of Accuracy of Bill

• Figure 3(A) Respondents’ Rating of Accuracy of Tariff

• Figure 2: Model of Customer Satisfaction

• Table 1: Index of Consumer Satisfaction with Willingness to Pay

Source: Professor Abdullateef (NERC Fellow), 2013

ELECTRICITY CONSUMER SATISFACTION

THE PRODUCT:- Customization; Value; Information; Scope;accuracy of product quality; and guaranty

THE SERVICE:- Attitude; Information; distribution; responseand feedback; call center; quality; service manager

THE NETWORK:- Safety; Reliability; Operability; SystemAccessibility; System Humanization

WILLINGNESS TO PAY:- Accuracy of Bill; Accuracy of Tariff;Payment Method; Payment Facilities.Inherited Bills


COVER

(Professor Abdullateef - Adapted from Scott M. Smith, 2007)

2. Improving customer serviceTo satisfy and delight the customer, the distribution compa-

nies will need to identify its customers, internally and externally. In general, there are two major customers we all interface with. These include: Internal customers: These are;• Co-workers• Employees of other departments• Other people in the organization• Suppliers

Most people do not realize they need to treat their colleagues as they need to treat a customer as king, or at least, with courtesy and respect, until they go looking for something from them.External customers: These include;• Current customers• Potential customers• Dealers / trade partners• Other key stakeholders

The underlying proposition in this classification is to treat everyone with respect, honesty, friendliness, empathy, compas-sion, have enough knowledge of the product or service and work with accuracy. The saying that ‘Customers Are Really Everything (CARE)’, indeed, holds true. So, if you care about your business, about what you are doing and about success, then build care

for the customers by constantly interacting and engaging them.

3. Understand the areas of interaction/interface with the customers• Point of sale/serviceIn most cases, the main point of meeting between the customers and a DISCO is at the point of sale, in the DISCO premises, when the customers come to vend, make a request or lay com-plaints. The DISCO, thus, needs to ensure that the customer experience at this point is based on a strategy for Customer Experience Management (CEM), which focuses the operations and processes of the business around the needs and wants of the individual customer. The objective of CEM will be to focus and ensure that customers are delighted and move from satisfied to loyal customers. Constant customer positive experience will lead to customer experience transformation, which will turn the customers into brand advocates.• Customer engagement activitiesThe DISCO should create engagement activities that will enable it meet, know and get closer to its customers. Such activities will include:i. Community meeting in schools, town halls, village squares, etc.ii. Press meetingsiii. Customer meetings at the business unitsiv. Festivals and fairsv. Customers stallsvi. Village electricity committees (VEC), etc.All these will be efforts to offer personalized service and find out the need of the customers and satisfy them. Surveys have shown that customers in the NESI always express concern about:Price competitiveness – Is the price of electricity competitive? Explainability - Is the price explainable and justifiable?Quality• Voltage fluctuations – Observed as brownouts and have led to the use of stabilizers and UPS;• Frequency – As it affects mostly electronic equipment.Reliability• Load shedding – Scheduled / unscheduled• Breakdowns – How speedily they are fixed• Advance information – Regarding outage planned or un-planned• Communication channels – Whether open or unreachable• Planning of outage – Organized scheduleService• Prompt attendance to breakdowns.• Prompt attendance to fluctuations and other complaints• Speed of connection, network upgrade

4. Understanding how the product/service is used by the customer

The DISCOs will do well to advise the customers right at the construction stage concerning supply availability, planned

• Figure 3(D) Respondents’ Rating of Payment Facilities

• Figure 3(C) Respondents’ Rating of Payment Method


COVER

and embedding of energy efficiency and conservation in their building projects (residences, commercial buildings, fac-tories, institutions, etc). Therefore, they must reinvigorate their involvement with approval of projects to ensure the projects tally with the realities on ground and the

long-term plans of network expansion, reliability and safety. NERC regulations on Connection and Disconnection Pro-cedures, Connection Charges for Elec-tricity Services, the Distribution Code and the Revised CAP 106 (now NESI) will need to be closely adhered to by the DISCOs and consumers alike. Activities of the so-called NEPA 2 will need to be checked. The DISCOs may need to look at revalidating their contracts with con-sumers through reassessing and reviewing the NEPA form 74 for new connections and extension of service.

5. Determine the gap between what is offered and what is ex-pectedDISCOs must try to meet with time and exceed consumer expectations by:• Applying creative solutions to problems• Turning complaints to delights• Going the extra miles• Generating pleasant surprises.

The DISCOs should develop and use consumer satisfaction feedback to assess the level to which they have met or ex-ceeded consumer expectations. This can be through the use of:(i) Consumer satisfaction feedback form(ii) Electronic survey through websites and electronic media (feedback, twitter,

SMS, MMS, etc)(iii) Suggestions, complaints or commen-dation boxes located strategically at the business units or other strategic locations, stands or stalls.(iv) Proactive communications with the consumers (Call centres, Interactive Voice

Recording (IVR), visits (to high risers and industrial customers).(v) Hotlines with toll free numbers.(vi) Ghost calling/service request; where hired people pose as customers and assess services as rendered in real situations.

The need for the DISCOs to have full-fledged websites and web-based ser-vices need not be overemphasized as this can make it possible for customers to(a) Track application status(b) Change name and address(c) Enable complaints and suggestions(d) Enable e-payment facilities and(e) Provide information.

NERC is setting pace in this by hav-ing a very dynamic and functional website at www.nercng.org that has most of the facilities above. So, NERC could be con-tacted for guidance and advice on this.

The DISCOs should, of course, in-tensify communications with consumers through the traditional channels of ban-ners, hoardings, bill boards, radio and TV programmes, newspapers, stickers, flyers and hand bills. Nothing is too much for the consumer. A distribution company should be a household name in its area of operations and be proud to be serving the community, providing jobs and con-tributing to national economic growth.

The DISCOs should have an En-terprise Customer Care Education Pro-gramme and train everyone in different degrees to be service providers, anywhere, any day. This must be continuous till effi-cient, excellent customer service becomes an entrenched organisational culture.

The DISCOs should also work assid-uously to deploy modern customer man-agement tools like Customer Information System (CIS) Customer Relations Man-agement (CRM), Enterprise Resource or Solutions Planning Systems, Workforce Management Systems and so on. These systems are usually integrated with other similar technical IT-based systems, such as OMS, GIS, AMI/AMR and SCADA in different variations to turn a DISCO into an instantaneously monitored and controllable entity for efficient service delivery.

• Engr. Abubakar B. Maude, FNSE is of the Government and Consumer Affairs Division, NERC

❝ Management can empower employees to facilitate and improve their levels of service delivery and become more attentive towards the needs of customers .❞

• Solar energy: An alternative source for power generation in the emerging market


COVER

T he Longman Dictionary of Contemporary English defines service as a particular type of help or work that is provided by a business to customers. It is also

what the people are entitled to expect. People expect good customer service everywhere. In this context, it is work that is provided by the Electricity Distribution Companies (DISCOs) for electricity customers. Quality of service is, therefore, the ability of DISCOs to work to meet or exceed their customers’ expectations. A company’s quality of service to its customers makes it stand out always.

It is recalled that the issue of lack of quality service in our nation due to the evils of inefficiency and corruption, took centre stage in discussions in year 2004, hence the establish-ment of SERVICOM (Service Compact with all Nigerians) – a commitment to service.

The history of electricity dates back to the 1890s but the same evils of inefficiency and corruption impacted negatively on the industry. The major issues principally concern high frequency of power outages, unreliable service, high level estimated bills, lack of pre-information on power outages, poor billing, mass disconnection of paying and non-paying customers, lack of meters and general shabby treatment of customers. These behaviours breed disillusionment in customers.

The Electric Power Sector Reform Act, 2005 which is the strength of the Reg-

ulator – Nigerian Electricity Regulatory Commission (NERC), was put in place to address, among others, the inefficiencies of the past – one of the key ones being lack of quality of service.

NERC, in its goal for fair regulation, has put in place specific customer protection standards to guide and ensure that distribution companies give electricity customers quality service to address the very needs of customers. Also considered are the rights and obligations of customers. These standards are:

Customer complaints handling standards and pro-cedures: This introduces a process for redressing complaints by electricity customers. Here, the Regulator has directed the establishment of Customer Care Units (CCUs) with all neces-sary ambiance in the offices of the DISCOs where customer complaints can be lodged and a system required to be in

place to meticulously record and keep a breakdown of complaints into fine details for better resolution, data collation and monitoring purposes. Only the unre-solved complaints at the Customer Care Units are escalated to the Forum which is charged by the Commission to hear and resolve complaints. Customers now have this structure where they go with their complaints.

Customer service standard of per-formance for distribution companies: These are standards expected from dis-tribution companies in the provision of electricity supply to customers. These

❝ NERC, in its goal for fair regulation, has put in place specific customer protection standards to guide and ensure that distribution companies give electricity customers quality service to address the very needs of customers. ❞

• A recently commissioned power station in FCT. Inset: Vivian Mbonu

• Vivian


COVER

standards ensure that services are meeting levels of service expectations based on frequency of task, accuracy of work done, turnaround time and timeliness.

Meter reading, billing, cash collec-tion & credit management for electric-ity supplies: This stipulates procedures concerning accurate meter reading by distribution companies. Along with this is the Estimated Billing Methodology Regulation which provides for the stand-ardization of the method used by distribu-tion companies (DISCOs) to estimate the power consumed, and subsequently, the amount customers are billed in instances where the DISCO is unable to read the customer’s bill within a billing period. This reduces the arbitrariness in billing.

In order to assist distribution com-panies with funding the identified meter-ing gap within the NESI, the Regulator intervened with the Credited Advance Payment for Metering Implementation. This is a unique programme in the sense that willing customers who participate stand to get their money refunded in the form of credit over an agreed period of time by the DISCOs.

Connection and disconnection procedure for electricity services: This establishes standards and procedures for providing customers with electricity.

Through Orders, NERC ensures cus-tomer satisfaction and had intervened with the removal of the ‘monstrous’ Meter Maintenance Fee (MMF) and recently the intervention in the case of Fixed Charge which read that DISCOs will lose fixed charge after consecutive 15 days power outage.

Regulation creates opportunity to good service at reasonable cost and en-sures best outcomes for customers. NERC

is working tirelessly to make sure this is achieved.

Recognising the importance of com-munication as the best way to develop informed customers, NERC’s Power Consumer Assemblies (PCA), other stakeholders’ engagements, popular radio programme – ‘Electricity Spotlight’ on Radio Nigeria network service, appear-ances on different radio and television progrmmes, informative flyers and jingles cut in different Nigerian Languages, press releases, etc, set the pace of harmonious coexistence.

With the privatization of the power sector, the new operators of distribution companies are now kept abreast of the importance of reach-ing out to customers as the best way to gain their understanding and goodwill, even in the face of inadequate supply. Customers and stakeholders need to be educated in the new emerging electricity industry.

So far, NERC has requested distribution companies to provide details of their cus-tomer outreach and sensitization plan with specific dates and time. So far, also, response from the DISCOs is encouraging. In ad-dition, a full meeting recently held between the Regulator and the operators was dedicat-ed to discussions on ways to build good customer relations between the operators and their customers.

Today, distribution companies are run as businesses, thereby making cus-tomer satisfaction to become even more critical. For customers to be given the pride of place, the following standards of performance are required of DISCOs:• Ensuring that Customer Care Units

(CCU) for complaints resolution meet Regulator’s standard

• Ensuring courteous treatment to

customers, knowing that the ‘Cus-tomer is King’ and has to be listened to and assisted

• Conducting customer consultative or town hall meetings to explain is-sues, listen to complaints, take sug-gestions and communicate progress

• Publishing planned outages for cus-tomer information

• Publishing update of Customer Care Officers and phone numbers

• Providing information handbills/flyers in all Customer Care Units (CCU)

• Producing educative audio/video jingles for Radio/Television

NERC, as the umpire, is commit-ted to regulating quality service through effective monitoring.

It is important to note that success comes when customers’ expectations are met, even as a satisfied customer is always glad to pay a premium for high quality service.

• Vivian Mbonu is of the Govt & Consumer Affairs Division, NERC

❝ Today, distribution companies are run as businesses, thereby making customer satisfaction to become even more critical. ❞


COVER

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Understanding Your Electricity Bills (Prepaid): By Farouk Bello

22 POWER WATCH / THIRD QUARTER2014

TARIFF

A s part of its continuous stake-holder engagement activities, the Nigerian Electricity Reg-

ulatory Commission (NERC) has met with the editorial board members of some print and electronic institutions’ headquarters in Lagos State. The focus of the engagement was to acquaint them with the milestones already achieved by the Commission since the privatisation of electricity utilities last year.

The Chairman/CEO of the Commission, Dr. Sam Amadi, in his remarks to the various editorial boards in Lagos, restat-ed the Commission’s mandate to ensure that customers have access to adequate and reliable supply at a reasonable price, stating that, “the Commission must strive to balance the dynamics between consum-ers who naturally tend towards wanting to pay less for more electricity, and the privatised power sector, which needs to be financially viable in order to provide the customers with more affordable elec-tricity.”

Dr. Amadi regretted that inadequate gas supply occasioned by frequent attacks on gas pipelines had made it difficult for the

country to achieve the needed power gen-eration required for onward distribution to the customers.

He also clarified the impression that electricity tariffs were increased, noting rather a minor review which led to the reduction of the fixed charges across the distribution companies.

He said, “It is expected that, with the reduction of the fixed charge, the DISCOs will improve their supplies, so as to be able to recoup their investments through energy charge.”

He asserted that, apart from inadequate gas supply to generate power to boost their revenue, the other problem confronting the new investors is that of buying the assets with equity and using the debt to finance the improvement and upgrade of the assets.

“It was, however not so, as the investors used 100 per cent debt to buy the assets instead of equity,” he lectured.

In their remarks, the various editors urged the new owners to engage their customers more, with a view to enhancing better market operations.

NERC Pays Courtesy Visit To Opinion Shapers

z Above (l-r): GM Special Duties, Channels TV, Mr. Steve Jodu ,Chairman/CEO, NERC, Dr Sam Amadi and Engr. Mary Awolokun, Commissioner, Engineering, Statndards and Safety, during a courtsey visit to the TV house in Lagos. Below: Dr Amadi (r) addressing a team of The Guardian Newspaper management.

...Pledges To Keep

Stable Electricity

Market For investment

By Wosilat Jubrila


NEWS

We Expect All Stakeholders To Play By The Rules

Dr. Abba Armiya’u Ibrahim is the NERC’s Commissioner in charge of Government and Consumer Affairs. In this interview with POWERWATCH team of Editors, he recounted the expectations of the various stake-holders in the new electricity market, explaining that, to guarantee success, operators are bound by licence terms and conditions to provide safe, adequate and reliable power supply at a just, fair and reasonable cost, even as customers are required to pay their bills promptly. He also spoke on other sundry issues. Excerpts:

K indly use this forum to educate the uninformed on the duties of your Division, Government and Consumers Affairs.

Thank you very much for this opportunity. The Government and Con-sumer Affairs Division of the Commission has a very specific mandate, or rather, dual mandate as we call it – the Government side and the Consumer side. By this, there are two different kinds of stakeholders we manage on behalf of the Commission. Of course, the Govern-ment stakeholders involve the National Assembly, the Executive arm of Government and, to a very large extent, judiciary and some other Ministries, Departments and Agencies (MDAs) relevant to the power sector. So, that is one side of it. But the most important stakeholders are the electricity consumers or who we would rather call customers; we rather prefer to call them customers and not consumers, because if you say consumer, they sound more of a passive entity, while a customer is a very involved person in whatever service being rendered. So, I would like to be tilted more to the customer side of the electricity service than the government side for the sake of this interview. They are the most important stakeholders that the Commission is mandated to protect as enshrined in the Electric Power Sector Reform Act, 2005. Particularly, Section 32 of this Act mandates the Commission to set up mechanisms and structures that will protect the electricity customer for a safe, ad-equate and reliable service. So, it is a key mandate and very important one at that, and as you rightly say ‘uninformed’, people may not be aware that the centre of this whole reform is the electricity customer. Without the customer, there wouldn’t be power sector, and so, what

we are doing which conforms with reform process is ensuring a better service delivery to the customer at reasonable, just and affordable price. Another key aspect of our mandate is to protect the vulnerable cus-tomers; we have customers that are considered vulnerable because of, may be, certain disabilities or low levels of income, thus making them unable to pay for services rendered. We are also trying to ensure we promote universal access, and in doing this, we consider all segments of the customer market, especially rural areas.Now, let us talk about tariff relative to schedule compliance; we discovered that government and its agencies have been known to constitute the bulk of electricity bill defaulters, as they often refused to pay up; what functional mechanisms do you have in place to whip them into line?Well, another key mandate of the Commission as enshrined in the EPSRA of 2005 is to put in place an efficient electricity market and structures that will sustain the market. So, if you are talking about efficiency of the market, you must provide a tariff that will ensure a sustainable business model for the operators across the industry and that tariff would have to be paid by whoever is provided the service – that is the only way you can sustain the market in the long term. That’s why, with the support of His Excellency, President Goodluck Jonathan,GCFR, we have been working assiduously to ensure that all government agencies, including the military and other para-military establishments pay their electricity bills as and when due. Just recently, there was a directive by Mr. President that these institu-

• Dr Abba Armiya’u Ibrahim


EXECUTIVE FORUM

tions must be metered and the preference is a pre-paid meter, but some of them have high loads, necessitating maximum high demand meters, we are trying to work out a technology that will enable remote disconnection for de-faulting customers. Not long ago, the Federal Secretariat here in Abuja was disconnected by the Abuja Electricity Distribution Company, which is a going concern that must be paid for its services. Although this is the right thing to do, we want to say we insist on doing it in line with due processes; there are regulations that guide how and the manner a customer can be disconnected – there has to be sufficient notice, proof of default in terms of payment, and if the customer continues to default, the distribution company has the right to disconnect. This has even become easier with the new technology that enables remote disconnection, and this is convenient and suitable for the DISCO workers who may not be able to go into, say, the barracks and military establishments to perform their legitimate duties, for fear of being harassed. But we are not hoping to get to that. There is a gen-eral understanding and support even from the highest authority; the current Chief of Defence Staff has assured he would do what is necessary to ensure all military institutions and personnel across the country pay their bills as and when due. Presently, we are seeing by example that the Nigeria Air Force is the best in terms of compliance among military institutions. So, there is no reason any government agency should default. This is no longer a government owned entity, it is now a service that is provided at a cost, and the law requires that this cost must be reflective of that service, and everybody must pay his or her own bill as and when due without any discrimination.For the Consumer Affairs side of your man-date, we are aware of your wide ranging pow-er consumer assemblies, town hall meetings and establishment of country-wide Forum Offices to handle consumer complaints. But, even at that, some of the electricity consum-ers still engage in unwholesome practices like by-passing of meters, refusal to pay bills and even stage-managing attacks on accredited bill collectors; so, how do you handle this as a prestigious regulator that NERC has come be? Well, definitely, being a regulator is a two-way street. We have to ensure fairness and firmness across board, both from the customer side and side of the operators. If customers are found wanting, we would have to come up with regu-latory interventions to ensure that the operators do not suffer. At the same time, if we see or have evidence that operators are exploiting the customers, then we have to step in and ensure that customers are protected. So, it is a very delicate balance. On the aspect of payment default, yes, we are aware that some people are delinquent with pay-ment; there are people still stealing electricity, and on this, we have new regulations against

theft of electricity. We are working very closely with the Office of the Attorney-General and Minister of Justice to draft a legal instrument that will lead to prosecution against electricity theft and vandalism and associated offences in the electricity industry by customers. It is a balance that we strive so hard to achieve, and we can assure you that we would remain very firm and resolute to ensure such things are reduced to the minimum.So, what level of punishment do we expect for offenders of this nature? Well, punishments ranging from fines to jail terms will be meted out to offenders when convicted. Of course, there has to be some due process, involving some court proceedings. That is why I said earlier we are involving the Attorney-General.With the PHCN unbundled companies now in private hands, what are your efforts to sensitise about 170 million Nigerians on the present status, as many still think they remain public utility, and therefore, no reason for increased bill. I mean, have you been able to break down your adverts/jingles to local dialects and telephone text messages to reach out to many of the citizens known to be predominantly illiterates?Well, as a regulator based here in Abuja, al-though we have zonal offices across the six geo-political zones, the key here is to really ensure that the new investors and operators of these utilities now have a very robust and functional communication strategy. We hold meetings with them every month and ask them to submit their communication plans. We, on our own, have our own little communication plans; we have a dedicated radio programme that is broadcast across the country through

the FRCN network; we also have jingles in English and various dialects that are being sent to different parts of the country. There is really so much the Commission can do, so the key is to get the distribution companies also involved, and we’ve seen good results so far. We’ve seen them have town hall meetings, go on publicity drive and informing the customers that there are new operators now; that things are changing and therefore, there is the need to be patient and support the new operators as well as ensuring prompt payment of their bills and report cases of vandalism and electricity theft. Obviously, all these require all hands to be on deck for the new and emerging electricity market to be able to achieve a breakthrough. Information and communication is very important to ensure the public is aware of these changing trends and then participate and buy into it.Then again, how do you handle the issues of over-ambitious DISCO operators, who overwhelm the good consumers with un-wholesome estimated billings and other charges, thereby generating unnecessary frictions in the industry?Well, estimated billing has been a very serious issue. Right from the day we came into the Commission, we have really focused on how to deal with this menace of estimated billing because we realized there isn’t any harmonized/ transparent means by which people are being estimated. The operators have certain targets to meet and once they recover their cost from the metered customers, the tendency is for the remainder of the bills to just be spread across to the estimated customers. So, there has been an incentive for a while for them to continue this unwholesome practice, so, we came up with what we refer to as Billing Estimation

z Dr Ibrahim


EXECUTIVE FORUM

Methodology Regulation a couple of years ago, I think around 2102. The aim was to really stop estimation, and the only way to do this is by metering all customers. I’m sure you are following events here. Just recently, the Chairman made a public statement indicating that funds were allocated to the previous PHCN for metering and then, there was an investigation to see what they have done with those funds that were specifically meant for metering. The whole idea of cost reflective tariff is to ensure billing accuracy, that reasonable, fair and just costs are recovered. You cannot say estimated billing is reasonable, fair and just because there is no well defined basis in most cases. If you go to all the DISCOs, they have different means or methodologies for doing this. So, that was why we came with the methodology to harmonise it first, and then focus on ensuring that every customer is metered. This led us to come up with a scheme called Credited Advance Payment for Metering Implementation (CAPMI), which allows the electricity customer to pay in advance for a meter and then recover the cost of that metering through the fixed charge component of his monthly bill, plus a certain interest, because, essentially, the customer is financing the distribution company. As you can see, it is a win-win at the end of the day; the customer who has been suffering from unfair billing methodology now has the opportunity to invest some little amount of money, purchase the meter and recover the cost of that meter from a rebate on his monthly bill. This is something we are working very hard with the new operators and some of them have submitted very good, well articulated plans that will close the metering gap. At the same time, we have also asked them to align their own metering plan with CAPMI scheme, as it is definitely, something that will also benefit the operators at the end of the day.

This really brings us to the Credited Advance Payment for Metering Implementation (CAPMI); how is the scheme progressing general-ly? How are the new owners cooperating, against the backdrop of the reality that they may want to design their own bill collection mechanism? And how are the power consumers responding?Initially, when the scheme came up, we had to go on a massive publicity

drive in collaboration with the operators, and then, if you recall, it was still the PHCN that was operating these DISCOs at that time. So, the CAPMI scheme came into being before the hand over to the new operators. Yes, there was a sort of, mixed reaction, but with education and enlightenment, people understood and bought into it because, ab initio, we had a very clear statement that meters were not supposed to be paid for, and following this, some customers were apprehensive, asking: if meters are not supposed to be paid for, why are you now asking us to pay? So, we had to explain to them that responses we were getting from the then PHCN was not good enough, and the metering gap would not be closed based on several issues beyond their own control, like the labour issue, the use of funds earlier allocated for metering going into payment of salaries for additional staff discovered in the course of negotiation, increase of 50% in their salaries and allowances, and so on. That was why we initiated the CAPMI scheme. Before then, people were so frustrated that they were requesting for the meter, undertaking to pay for it, no matter what it takes, and we said to them, it will be unfair to you to pay for the meter, but rather, it would be better if you pay an advance amount that you will recover and also have a certain interest being the one financing the DISCO at that level. Starting with the customers, I think most people are happy; it is, although, slower than we envisaged in terms of covering the metering gap which is so huge. But despite that, we have received some reports regularly by the DISCOs on how they are performing in terms of the CAPMI. One of such reviews will ba at the monthly meeting with the DISCOs that will enable us have some assessments on how each and every one of them is doing regarding metering.On the side of the new operators, they have also taken it very well as

business people, knowing full well the value of finance. If somebody else is financing you at a lower interest rate compared to what obtains in the bank, I think it is a welcome development. Some of them that really understood this were very fast to key into it and enjoy the bene-fits. Like I mentioned, they came in with their metering plans, but the CAPMI is also complementing their own metering plans, and at the end of the day, it is a win-win situation, although not as fast as we had envisaged. Presently, we are monitoring the issues that are impeding the actualization of this metering plan.

Under the new post-privatisation era, can you please clearly educate Nigerians on the rights and obligations of both the consumers and service providers, so that each side gets to know exactly what to do?Well, we have several rights and obligations for both the service providers and the consumers. The service provider will ensure good quality service. Of course, we know the cost of self service through generators. Nobody wants that, especially as it has very high risk factor. The customer wants a safe, adequate and reliable supply at a just, fair and reasonable cost. Service provider should also ensure they inform the customers about the different tariffs for the supply of electricity and how they apply, so they can make informed decisions when they apply for electricity services; they should inform the customer of any tariff increases if they occur, and so on. On the part of the customer, he has an obligation to pay the bill for the electricity supplied by the service provider; most importantly, he should ensure that equipment are protected, report incidences of vandalism or electricity theft, and of course, not to engage him or herself in any act capable of sabotaging the supply. Indeed, it’s a double-edge sword, as where there is a right, there is also an obligation on both parties, and we expect fair play. Taking an analogy from the football field, both parties are expected to ensure fair play, while we are expected to ensure unbiased officiating as the umpire. We expect them to play by the rules, bearing in mind, at all times, rules and regulations guiding the game. This game is a win-win at the end of the day because the customer gets what he wants and the operator also gets paid for services rendered.

z Dr Ibrahim


EXECUTIVE FORUM

Most times, consumers appear not to know how to reach NERC in the event of friction; can you also explain the flow chart for con-sumer complaints, so that whoever has one would be able to know the right step to take?Ok, that is a very, very important question because somebody, of course, needs to know what to do. It’s part of those rights. You need to even know what your rights are. The best way to empower any person is through education and enlightenment. We have a dedicated unit within the Division called Consumer Education and Enlightenment Unit and it is its responsibilities through various town hall meetings and media events, etc, that we educate people. Coming back to the question on flow chart, we have a three-tier step for handling consumer related complaints as regards electricity service. First and foremost, if you have any complaint, con-cern or issue regarding electricity supply, you go

to your nearest business unit; it’s at the business unit that you pay your bills for buying their tokens for pre-paid meters. The business units are, mandated to have their desks for receiv-ing, taking and responding to those customer complaints. However, if the customer is not satisfied, then he or she has a right to appeal that decision, action or inaction to what we call a Forum (that’s the second level), which is sort of an appellate level, and across all the DISCOs, we have these Forum offices established, with just a few remaining, and we have inaugurated their members. The composition of the mem-bership, interestingly has stakeholders from outside, comprising credible people within that environment; we have a representation from the Manufacturers Association of Nigeria (MAN)representing industrial electricity consumers; from the Chamber of Commerce representing commercial consumers; from customer group usually nominated by an official of Consumer

Protection Council (CPC) resident within that locality. We also have a representative of the Nigerian Society of Engineers (NSE), preferably an elec-trical engineer normally nominated by the NSE; an NGO or CSO that is very active in that area. We screen them and ensure they are integral and active members of their communities. So, you see these are independent minded people, whom we screen to ensure they are there for the good of their communities; they sit down and decide among themselves who their chairman would be, the Commission does not interfere with their decisions. It is a tripartite kind of a framework – the DIS-COs provide the office accommodation outside their normal offices as the Forum is supposed to be an independent body, while the Commission provides the secretary for the secretariat, and then, the Forum members would sit and listen

to complaints by parties not satisfied with the decision of the DISCOs. So, it’s an appellate level, they invite parties, and on most occasions, they resolve the disputes. But if the disputes are not resolved, then the complainant has the right to come to the Commission for review and determination on whether it will hear the case or direct the operators as the case may be. The same thing applies to the other side, as the complaint is not only by the customers – the DISCO also has the right to take a consumer to the Forum and also bring that consumer to the Commission. So, it is also a two-way thing. The Commission is in the middle trying to have a fair balance, it could be any one of the parties, although most of the complaints we see often come from the customer. But most importantly, we evaluate performances of these operators by the number of complaints and their nature; the complaints vary, we ask

them to submit monthly report on the number of complaints they had received, those they’ve resolved, those they haven’t, the reason why they haven’t resolved them. We want to know the exact nature and category – is it a billing issue, service interruption, illegal disconnec-tion or electricity theft issue. By reviewing all these, it enables us to see what the issues are, with a view to putting necessary regulatory interventions that will mitigate such issues. It’s really a valuable information; we know there is a lot of that happening, and it’s a huge data that is being reviewed, and based on that, we are automating the system. The Commission has just awarded a consultancy to automate the complaint handling, set standards for the distribution companies to also have sort of IT compliant system that will be integrated across the whole industry, so the Commission will be in a position to have access to these data, analyse them and see who is performing and who is not, what are the issues, what needs to be looked into harder, with a view to bringing down those levels of complaints, thus fostering service quality.What happens in the event of Forum Offices and NERC HQ not being able to resolve the dispute? Does the consumer now have the right to go to court?Sure, they have the right, but as long as we are sure we followed the due process in deal-ing with the complaints and we are certain to be fair, bearing in mind our quasi-judicial powers, certainly, an aggrieved party can go to the conventional court. But then, at what cost; and whose expense? We haven’t seen that thankfully, but if it happens, I can assure you the Commission will do everything necessary to ensure it abides by the laws of the land and stand by our own due processes in dealing with such issues, in line with the EPSRA, 2005.NERC has, no doubt, posted a great deal of successes in its effective regulation of the Nigerian electricity industry in line with the EPSR Act, 2005; can you state some of these achievements?Well, first and foremost, I want to state that these achievements are not NERC’s alone; it involved each and every one of the stakeholders, including the media. If we go back to the reform that started in 2001 with the National Electric Power Policy and leading into the Electric Power Sector Reform Act of 2005 and leading into the 2009 launch of Roadmap by Mr. President, it is a very huge undertaking. These reforms have been applauded globally as very ambitious and so far, a success. We were not given a chance as a country, there was a lot of pessimism and didn’t give the government an encouraging outlook. Despite the pessimism, we have unbundled the state-owned fully integrated utility into different companies, both horizontally and vertically – we have the DISCOs, GENCOs and the TCN under contract management. All these assets have been successfully privatized, of course, with the exception of the TCN and,

z Dr Ibrahim


EXECUTIVE FORUM

one DISCO and GENCO which are yet to be handed over, although privatization is almost concluded.So, you can see; for somebody to be involved in a reform of such mag-nitude, in such a priviledged position, I would say is something I can look back and say I’m truly proud to be part of. It’s a very important thing that has changed the landscape of our country. Once we are able to solve this power issue, I can assure you three quarter of our problems as a country, including human, material and natural resources, have been solved. The energy issue being resolved, alone, can resolve our diverse challenges as a nation. We will now be able to have a thriving industrial sector that provides employment opportunities. The cost of power generation through petrol and diesel engines is enormous,

people have lost their lives; a whole family has perished using the ‘I pass my neighbour’ generator. What price can one pay for that? Busi-nesses have left this country because of insufficient electricity, simply on account of the sector not being efficiently managed. All these things are now being effectively tackled, and it’s just a matter of time, things will normalize. And, as I told you, being part of this reform, even for one day, is something one can look back and thank our God for being opportuned to participate in.What have been your experiences doing all these?Well, it’s humbling, to say the least. One will realise that as life goes on, there is a lot to learn from, the experience is enormous, I’ve had the opportunity of interacting at all levels across all segments of our society, across the globe and meeting with various regulators. NERC had been very consistent in developing capacity and has affiliations with the National Association of Regulatory Utility Commissions of the USA; we draw from their experiences spanning over hundreds of years in utility regulation, they have various regulatory commissions across all the states of the US, and of course, there is the Federal Energy Regulatory Commission and we have access to all the data base of resource and experiences to learn from. We are part of the European Regional Regulatory Association (ERRA);

I just came back from Customer and Retail Market Working Group. In Europe presently, they have a specific working group focused on the customer and retail market and we are affiliate members of this working group as part of the larger ERRA community. We have partnerships with other regulators, both in Africa (AFUR), West African sub-region (ERGRA),etc. It’s really very humbling like I said; one has the experience, learns every day and is happy leaving the home every morning and staying here till late based on the satisfaction and the experience/knowledge one derives. I thank God for being here, Mr. President for giving me this opportunity, my colleagues within the Commission - Commissioners, management and other staff. Working with them in expanding this horizon of knowledge has really been of tremendous value to me, and I look forward to continue to do my very best towards the success of this Commission and the electricity industry at large. What of the challenges?Indeed, where there are opportunities, there are, of course, challenges. We are dealing with a very nascent industry; the consumers in Nigeria, based on historical experiences, are used to resigning to fate, especially when you have a very large, inefficient government-owned service provider dominating the space for decades. There is a culture that had been established – that of nonchalance, and that being government, you can do anything and get away with it; but unfortunately, that has been history of electricity service. Although it didn’t start that way; growing up in Nigeria, power was very stable. If you look at our history, the level of power we are generating today is still the same level and capacity we had over 20 to 25 years ago when we had stable power. So, the problem really started back then, it wasn’t entirely the fault of the service operator. There were failures in policy at the top level of governance, failures of management at executive level of those in charge of the entity then, there have been failures across board and equally, on the part of the society – those that saw electricity as free and therefore no need to be paid for. So, all these issues contributed to the failures of the past, but thanks that the government had realized that it can’t sustain this and the whole sector needed to be reformed, and thankfully also, there is a commitment from the highest level to ensure these reforms succeed. The challenges, therefore, are mainly those of perception and level of education of people which is still not good enough. A lot of people still don’t understand what the reform is about, they really need to be educated and enlightened. The operators should also understand that this is not just a typical money making business, it is a long-term investment that requires a lot of commitment and investment to upgrade, expand and rehabilitate the network, the generators and overall infrastructure. The consumers, on their part, must realize they have to be patient and support the reform by paying their bills. I can

assure you, if there is any need for tariff review, it would have to be justified before the Commission approves it. Most importantly, we are not going to allow cost that will not be prudent to be passed on to the consumers. So, these are all the challenges we are facing in the power sector, but gradually, people are getting to understand and buying into it, and hopefully, we would come through the reforms very soon to the applause of all.Thanks greatly for your time You are welcome

❝ We expect them to play by the rules, bearing in mind, at all times, rules and regulations guiding the game. This game is a win-win at the end of the day because the customer gets what he wants and the operator also gets paid for services he rendered.❞

z Dr Ibrahim


EXECUTIVE FORUM

z The Abuja Forum Office in Gwarimpa Estate, FCT

The Ibadan Forum Office of the Nigerian Electricity Regulatory Com-mission (NERC) has settled 24 out of the 68 complaints received within

the last one year of the Forum’s inauguration in July, 2013.

About five of the remaining 44 complaints are nearing amicable resolution with the parties expected to report back to the Forum on satisfactory terms of settlement.

Meanwhile, most of the remaining complaints are largely request for additional transformers and or incidences of over loaded transformers and request for meters, for which the Forum had to summon senior management staff of Ibadan Electricity Distribution over its delay in deployment of transformers.

The Head of Customer Care Unit of the utility, Mr. Noel Valeza, in re-sponse to questions from the Forum members, said his company perfected mechanisms to take delivery of consignments of transformers which would be deployed immediately within the next few months.

Valeza, however, noted that requests for transformers were in excess of the expected consignments, even as he added that investment decisions for massive deployment of transformers would soon be taken by his company.

He also assured that the company would soon embark on installation of meters, adding that his company would deploy latest technology in meter-ing its customers, thereby reducing incidences of electricity theft as well as estimated and crazy billings.

The Forum Chairman, Dr. Babajide Taiwo, said that absence of substantive Forum secretary and lack of adequate awareness about the existence of the office are the two major challenges faced by the Forum Office.

He commended the dedication of the Forum members and secretariat staff who have consistently formed quorum at all their sittings and hearings and for the level of robust discussions in their meetings.

Taiwo was optimistic that, with increased awareness and deployment of substantive secretary by the Commission, the Forum could quadrupled its output by this time next year.

Other members of the Forum are; Engr Oluyemi Morakinyo, represent-ing the Nigerian Society of Engineers; Mrs Eniola Oyedele, representing consumers’ interest; Barrister Oseni Yinka, representing the Consumer Protection Council and Engineer Isiaka Alapa, representing the National Association of Chambers of Commerce, Industries, Mines and Agriculture, while the Chairman represents Manufacturers Association of Nigeria.

Ibadan Forum Office Clears 24 complaints in 6 Sittings, 4 Hearings

z Kauran Namoda Transmission Station


ACROSS NIGERIA

ZONAL OFFICES:

By Mary O. Anavhe

In its bid to ensure that all Nigerians are carried along in the reforms of the power sector, thus bringing the Commission’s

services closer to the grassroots, the Nigerian Electricity Regulatory Commission (NERC) on 30 March, 2012, approved the establish-ment of zonal offices in the six geopolitical zones of the country. The zonal offices were created with the man-date to initiate liaison activities with stake-holders in the power sector, such as the state Ministries of Power, electricity boards and/or agencies of states or federal government with

overlapping or ancillary services in the power sector in their areas of coverage.They are also saddled with the responsibil-ity of initiating pro-grammes and activities that could enhance public understanding of the Commission’s roles and functions in the emerging electricity market.These zonal offices were designed to work with

the Government and Consumer Affairs Di-vision of the Commission in organizing and executing power consumer assemblies. They are to work with the Forum Offices in their areas of coverage to ensure that consumers’ complaints were attended to.Of specific interest is that the zonal offices took off few weeks ahead of the introduction of Multi-Year Tariff Order 2. During this period, the Commission’s zonal offices worked with the National Orientation Agency’s zonal offices scattered around the nooks and crannies of

the country to ensure the smooth take off of the current electricity tariff regime.

General/specific functions of the zonal office- To establish and maintain relationships with stakeholders within the zone.- Carry out consumer enlightenment activities.- Monitor compliance with the Commission’s rules, regulations, codes, orders, standards, terms and conditions to licenses.- Inspect, test and certify all electrical power projects and installations within the zonal office’s area of operation.- Prepare timely reports on activities and other requirements of the zonal office.- Oversee and direct the administrative func-tion of the forum offices within a zone.- Verify and ascertain load allocation to the DISCO and report other complaints to the Commission.For more details on NERC zonal offices, visit our Frequently Asked Questions website at www.nercng.org. • Mary O. Anavhe, is NERC’s Desk Officer in charge of Zonal Offices

Bringing NERC Closer To The People

By Michael Faloseyi

SOUTH WEST

T he South West Zonal Office of the Nigerian Electricity Regulatory Commission has advised the management of the Ibadan Electricity Distribution Company

(IBEDC) to start implementation of its metering plan so as to close the wide metering gap in the industry.The advice given by the Head of the South West Zonal Office, Mr. Michael Faloseyi, came on the sideline of a hearing of the Ibadan Forum Office held on June 3, 2014. Prior to that occasion, members of the Forum Office had observed that most complaints received bordered on faulty transformers and crazy and estimated billings. Meanwhile, replies to enquiries by the Forum over com-plaints that border on metering, had shown a rehearsed and worn out phrases, such as “we are working on our meter roll out plan.” It was in reaction to this development that the Forum mem-bers had mandated senior management of the company to appear at its June 3, 2014 hearing. Speaking with senior officials of IBEDC on the sideline of the hearing, Faloseyi advised on the need to speed up work on the company’s meter roll-out plan, lamenting that peo-ples’ hopes and expectations after the sales and transfer of ownership of former Power Holding Company of Nigeria (PHCN) to private investors are waning out. He observed that customers will sooner than later begin to ask questions, noting that the earlier the new investors start to meet Nigerians’ expectations, the better for the industry.

Respond-ing, the leader of the del -e g a t i o n , Head of Cus tom-er Care, Mr. Noel Valeza, as-sured that his com-pany was finalising its invest-ment plan to replace some of the dam-aged trans-formers in its network and that its meter roll-out plan would soon take off. He said that the new management of Ibadan Electricity Distribution attached much importance to customer satisfac-tion and that the issue of crazy billings would be drastically reduced as soon as the meter roll out plan takes off. Explaining further, he explained that his company was bringing onboard some of the latest technology in metering technology which would reduce incidences of energy theft and revenue loss to the industry.

Implement Your Metering Plan Now, S/West Zonal Office Advises Ibadan DISCO

z Michael Faloseyi, Head, S/West Zonal Office, NERC

New Business Managers of Ado and Ido-Ekiti Business Units of the Benin Electricity Distribution Company have been

advised to acquaint themselves with relevant rules and regula-tions pertaining to customers’ complaints handling.

This advice was contained in congratu-latory letters to the newly deployed Business Managers, Engr. Adekola Abiodun of Ado Business Unit and Engr. Ademola Taiwo of Ido Business Unit of the Benin Electricity Distribution Company.

The South West Zonal Head, Mr. Mi-chael Faloseyi, had earlier in the course of li-aison activities to the business units, told the new Business Managers of the Commission’s uncompromising stand on issues of custom-er care and prompt clearing of faults.

He further told them to impress it on their management to start implementation of their metering plan so as to reduce inci-dences of crazy billings and complaints over estimated billings.

Two complaints from hotel owners in Ikere and Ado-Ekiti were discussed during

the visit to the Ado Business Unit. The two business managers in their separate responses guaran-teed their readiness to ensure prompt response to complaints.

...Urges New Business Managers To Acquaint Selves With Complaint Regulations

z A cross section of participants at the commissioning of Eko Forum Office at No 6, Odulami Street, Marina, Lagos.


ACROSS NIGERIA

SOUTH WEST

SOUTH WEST

The establishment of the South East Zon-al Office of NERC is a good develop-

ment, as this brings the consumer closer to the regulator. Since inception, the office has made some positive impacts on the public and this has earned the Commission some accolades, and so far, we have received a number of commendations on behalf of the Commission.

The office has been able to organize some group sensitization programmes and has been responding to invitations by some organi-zations and institutions for enlightenment programmes. We have visited schools, NYSC orientation camps, communities, ministries and parastatals, hotels, etc. Issues discussed include: energy efficiency and conservation, rights and obligations of consumers, safety matters, the MYTO, metering as well as the on-going privatization and power sector re-form.

Some of our activities include: monitoring customer response to electricity issues and performance of service providers, the Enugu Electricity Distribution Company (EEDC), sensitization of the public, institutions and organizations, networking with the EEDC to monitor sector events in the zone, visits to ministries and parastatals, housing estates, etc.

These are not all; there are also liaison and support for the Enugu Forum Office, visits to customer service centres and customer com-plaints units to monitor the management of customer complaints.

MAJOR CUSTOMER COMPLAINTS

Tariff and fixed chargesWhy increase tariff when there is no supply? This turned out to be a recurring question as small and medium scale enterprises (SMEs) are complaining bitterly and claiming that the fixed charge, especially D2 is on the high side.

TransformersThere are many faulty transformers across the zone and many communities and districts are affected. The EEDC does not seem to be responding. Some communities still go ahead to buy transformers, poles, wires, and yet, EEDC finds it difficult to respond and install these for them. EEDC claims it does not have the accessories and materials, even as many electrified communities have continued to remain in darkness.

Pre-payment meters (PPMs)This is the main thing and everybody wants

the meter. Those with meters claim that EEDC does not read them. EEDC should provide consumers with PPMs to avoid overbilling and refusal of consumers to pay. Excuses are not enough.

Estimated billingSince there are no PPMs, EEDC seems to be comfortable with estimation which con-sumers now call crazy, outrageous, stealing, robbery, etc. Continuous estimation by EEDC is not acceptable as there is no basis for this. People are billed for the energy they did not consume. The bills are not realistic and more than 200% what consumers should pay. Many consumers are refusing to pay, and consequently, the zonal office has been in-tervening.

Bulk metering/billing

Many communities are on this platform and because of the high level of losses involved, the bills are usually high. Many of the com-munities are not coping and the result is very high debt profile, as many poor communities cannot afford to pay several millions of naira accumulated electricity bills. The tendency is for EEDC to cut them off when they failed to pay.

Un-electrified communitiesMany communities are yet to be electrified and are making appeals for attention.

COMMENTS AND WAY FORWARDTo the best of our ability, the Owerri Zonal Office is doing its best in monitoring events in the zone. The zone needs some level of staffing to strengthen its ability to further reach out and be able to cover the five states in the zone.

In trying to understand the emotions, percep-tions and feelings of the Nigerian public, we discovered that people are angry and often-times mistake NERC for the service providers (EEDC) and always vent their anger on the regulator as being responsible for the power

supply woes in the country.

Success in the power sector reform can be achieved if all concerned stakeholders -NERC, government, investors, financiers, consumers, etc, come together and collabo-rate to move the sector forward.

Consumers want NERC to do more to as-sist in checking the excesses of EEDC, as the complaints are numerous.

Consumers’ accumulated debt resulting from unfair billing and inability to pay is mounting day-by-day. New owners should use the local media to tell consumers their plans and to engage in consumer education and enlight-enment.

EEDC should establish ‘Hot Lines’ for cus-tomer complaints. Government and NERC should persuade the National Assembly to make laws on vandalism, illegal connections and meter by-passing.

It is true that the service providers are for business to recoup their investment, but then, all their attention should not be on money as they seem to find PHCN estimation billing method very attractive and irresistible.

There is the need to watch out the tendency of the service providers to ignore the rural ar-eas and focus on the cities for quicker returns.

The very poor image of PHCN already creat-ed still exists, and so, DISCOs should come up with programmes to train and re-orientate their workers on customer service relation-ship and to re-assure consumers on quality service delivery.

EEDC should organise seminars, workshops, town hall meetings to hear and feel what peo-ple have to say.

The issue of arrears of bills, including estimat-ed bills, is scaring people away from paying. Before hand-over, PHCN did promo for people to come and pay a certain percentage of their bill (debt) so that the balance could be cancelled out, in order to start on new slate. Many consumers responded, only to discover later that the balances were carried over in their new bills. This is a problem to be addressed by the affected DISCO, EEDC and Nigerian Electricity Liability Manage-ment Company (NELMCO).

• Barnabas Azuwike writes in from the South East Zonal Office of NERC

❝ Many communities are on this platform and because of the high level of losses involved, the bills are usually high. ❞

By Barnabas Azuwike


ACROSS NIGERIA

SOUTH EAST

z Zubairu


IntroductionSome of the laudable objectives and functions of NERC in its enabling Act, the Electric Power Sector Reform Act, 2005 (the Act) are “to establish ap-propriate consumer rights and obligations regarding the provision and use of electricity” and “to ensure that adequate electricity is available to consumers.” In line with these objectives and functions and the Commission’s power to make regulations under Section 96 of the Act, the Commission made the following regulations to ensure the protection of electric power consumers’ rights in the provision and use of electricity services in Nigeria:i. Customer Complaints Handling Standards and Procedures;ii. Customer Service Standards of Performance for Distribution Companies;iii. Connection and Disconnection Procedures for Electricity Services;iv. Meter Reading, Billing, Cash Collections and Credit Management

for Electricity Supply. The Regulations on Customer Complaints Handling Standards and Procedures require that complaints should first be laid at the Customer Complaints Unit (CCU) of the Distribution Companies, while unresolved complaints at the CCU may, by either party, be referred to the Forum. Appeal against decision of the Forum is sought from the Commission. This, notwithstanding, the Manual for Operations of Zonal Offices provides, among other things, that the zonal offices should: Attend to minor consumer complaints and refer major complaints to the Head Office; sensitize the public about the rights and obligations of electricity consumers; execute consumer education and advocacy; and prepare reports on consumer complaints.Some of my experiences From my direct interaction with consumers, both at the field (during sen-sitization programmes) and in my office, in Gombe, I came to understand that consumer s’ exhibition of certain behaviours at a particular moment depends on how he or she was or being treated by the utility (the distribution company) in the provision of services to them. More often, a distribution company acted unfairly by imposing outrageous estimated bill for a particular month to a consumer who had no supply at all for the period, and nothing was done when the consumer complained to the distribution company. Such a consumer comes to the zonal office with a feeling of bewilderment, of anger, and of infinite sadness. Sometime, they carry their aggression on my person, erroneously believing that the zonal office is not doing enough to curb the excesses of the distribution company, with regard to billing estimation.Other issues being contained at successive intervals were consumers that have paid for meters long before 1st November, 2013 hand over date to private owners, but are yet to receive the meters. These complaints are recurring. Their frustrations and anger were fuelled each time they were issued with an unfair estimated bill. I remember the day a Business Manager of a dis-tribution company told me that, in the course of their routine monitoring exercise, they had discovered an electricity meter owned by Niger Republic (Nigerlec) installed in one of the premises. A fine customer irony! This is an indication of desperate need for meters and the extent to which consumers can go in their desire to have meters. I shall always remember the day we went for Power Consumer Assembly sometime in October, last year, in Dass Local Government of Bauchi State. This was a local government with significant number of customers. However, I was stunned to hear on that day from consumers that they had only one fault clearing staff for the whole local government. The community was assured that

this was one of the issues the electric power sector reforms sought to ad-dress. With regards to consumer edu-cation and ad-vocacy, Gombe Zonal Office found members of the National Youth Service Corps useful in sensitizing the public on the rights and obli-gations of electricity consumers. This is being done through regular distribu-tion of NERC fliers and discussions at their community development days.From my interactions with consumers in the field, none was livelier and had more convincing level of support than the one discussed at the Forum for Federal Government Workers in Gombe State.

For more than one reason, I had cause to understand the different feelings of consumers when they behave in an untoward manner, and I have developed the capacity to assuage the situation. This experience can only be achieved from direct participation in the events or activities.ConclusionThough the challenges are enormous, NERC is committed to ensuring the protection of electric power consumers’ rights in the provision and use of electricity services in Nigeria. And in line with this commitment, NERC has produced the regulations earlier mentioned which have to do with consumer issues. To realise this commitment, NERC further introduced the Credited Advance Payment for Metering Implementation (CAPMI), Methodology for Estimated Billing and improved its monitoring mechanism for effective realisation of, not only its consumer mandate, but all other mandates provided by the Electric Power Sector Reform Act and the Electric Power Policy.

• Ahmadu Zubairu is the pioneer Head, North East Zonal Office, NERC, Gombe

ACROSS NIGERIA

Exciting Experiences With CustomersIn North East Zonal Office By Ahmadu Zubairu

NORTH EAST

❝ From my direct interaction with consum-ers, both at the field (during sensitization pro-grammes) and in my office, in Gombe, I came to understand that consumer s’ exhibition of certain behaviours at a particular moment de-pends on how he or she was or being treated by the utility (the distribution company) in the provision of services to them .❞


One of the core reasons NERC was set up is to ensure the establishment of an effective electricity market which

takes into consideration consumer protection and fairness to all players. NERC protects the interest of the Nigerian electricity consumer ensuring that electricity companies provide the electricity consumers with adequate power supply in an efficient manner within affordable limits and backed by excellent customer service.Customer service delivery is vital to any organ-ization. It implies getting services as effectively and quickly as possible to the intended recipient.It is imperative to note that a customer or con-sumer is the lifeblood of any business, and so, treating them well should always be a priority.From our experience in the South- South zone, most of the electricity consumer complaints centres on over-billing/estimated billing, black outs, vandalised/dead transformers, non-avail-ability of meters, inadequate power supply and Illegal/wrongful disconnection, etc. These issues are mind blowing and upsetting. An electricity consumer walks into one of the zonal offices with an overbilling or non-supply of electricity complaint and looking visibly upset and unhappy as a result of repeated complaints at the business unit office, with no near solution. Following this, it becomes clear that an excep-tional customer service skill is required, not only to talk politely and calmly to the electricity consumer, but to give assurances that such issue would be looked into in a satisfactory way and manner that would boost consumer confidence.Handling customer complaints which is one of the very basic activities in the south-south zone requires a careful approach, acknowledging what is important to the consumer, understand-ing what the complaint/inquiry is about, who the complaint is addressed to, channeling their concerns to the appropriate body in this case andwriting to the distribution unit where same complaint has been previously made as well as ensuring that a response is received within the stipulated time.The distribution company of Nigeria is saddled with the responsibility of providing adequate electricity to consumers as one of its mandate. It then becomes necessary for DISCOs and NERC to create a smooth working relationship. Series of complaints have been received from various units in the south-south zone on the poor quality of service rendered by DISCO. There is an instance of one particular consumer in Benin city sending repeated complaints on the poor quality of service rendered by the DISCO, accusing it of epileptic power supply, delay in treating complaints, estimated billing bothering on fraud, and specifically stating that he had applied for meter for over three months, and

yet, no response by the DISCO.It is important that consumers understand the chain and process of resolving complaint and such explanation requires excellent interpersonal and communication skills, both from the DISCO and NERC and stating clearly the steps and follow up activities to be in process of resolving their complaints. This process may require mas-sive enlightenment on both sides of the DISCOs and NERC and close monitoring/compliance.The process of resolving complaint in the cus-tomer complaint handling: standards and pro-cedure, requires that complaint should be laid at the customer complaint unit (CCU) of the distribution company, if unresolved, then such complaint will be referred to the forum.Attending to customers in a friendly, polite and helpful manner positively projects the public image of the Commission, adding value and effectiveness to work force.Challenges in delivering quality customer serviceThe electric power sector is undoubtedly one of the most challenging in Nigeria. It is entangled with so many challenges bordering on technical, political, moral/ethical, financial/economical, and even bureaucratic. Providing quality custom-er service is a real challenge in many areas, starting with managing the channel of communication required to offer customers a choice in how they interact with the Commission.There are several means of reaching out to NERC which include, but not limited to telephones, emails, SMS, etc, but one obvious medium of communication between the Commission’s zonal office and consumers is a physical appearance, where consumers are expected to produce their complaint in writing and delivered to the zonal office. It becomes rather difficult for customers in rural areas to lay complaints because the delay in the delivery time of their complaint poses a problem, even as other means of communication, such as telephone, email, fax, etc, remain viable sources of communication. Poor network in rural areas and the somewhat lack of internet services in such areas also stand as a barrier in solving such issues.On the part of DISCOs, failure to innovate and adopt new techniques, in order to be at par with international standards, poses a serious challenge. The slow pace in drifting away from old ways of managing customer support and embrac-ing technological resources, where cutting edge technology is used to deliver world class service to consumers and investors alike, is worrisome.Customers want to have adequate electricity; they also want electricity complaints resolved expediently. They generally become agitated when the complaints are not resolved, especially when there seems to be prolonged black out and assurances from the DISCO seem nothing but mere words with little or no action. This, in turn,

becomes a challenge to NERC officials who get constantly harassed by the consumer until their issues are resolved.From our experience in dealing with the DISCO in the south-south zone, the slow response time from DISCOs stand as a challenge to electricity customers. This rather slow response affects the confidence of all players in the sector.Delivering a consistent customer service to con-sumers can be quite challenging, regardless of what person in the Commission interacts with the consumer. The same quality of customer service standard should be delivered across all zones, even as having inconsistent service delivery from DISCOs is bad for customer confidence and thus, becomes a huge problem to the public image of the Commission.The salient question here is: Is NERC actually succeeding in getting relative compliance/ im-provement in excellent service delivery?Conclusion and recommendationThe South-South zone of the Nigerian Electricity Regulatory Commission (NERC) and DISCOs represent the hope for electricity consumers within the zone; it brings a lot of confidence to the consumer, a fantastic development with commitment of ensuring quality customer service, prompt response, protection of rights of consumers in line with the set objectives of ensuring steady power supply.It is then imperative to state that the effectiveness of NERC, South-South Zone depends heavily on the response time of DISCO which then becomes necessary for DISCOs to rise up to their mandates in ensuring prompt repairs and instal-lation of transformers and power line, treat the consumer right by understanding their concerns and providing prompt response to complaint/inquiries in a consistent manner.The Commission’s representatives across all zones in the country, together with DISCOs, must put all hands on deck to achieve the objectives of the Electric Power Sector Reform Act and the Electric Power Policy to be able to deliver excellent services to the Nigerian electricity con-sumer in general.

• Marcelina Abang is the Head, South South Zonal Office, NERC

ACROSS NIGERIA

SOUTH SOUTH

❝ It is imperative to note that a customer or consumer is the lifeblood of any business, and so, treating them well should always be a priority.❞

Handling Customer Complaints In S/South Zone Requires Careful Approach By Marcelina Abang

to bearable levels. Advanced meters are already in Nigeria in the form of Automated Meter Reading (AMR) for MD customers and grid metering.Building financial foundation via MYTO:

One of the key distinguishing characteristics of any world class electricity market is that the tariff structure must make provision for full recovery of cost of production and supply and as well, ensure a reasonable return on investment. The regulator then has a duty to ensure that part of such returns are re-injected into the growth and development of the industry by laying out regulations setting out for capi-tal expenditure which will keep strengthening the system. NERC is empowered through Section 76 Sub-section (2) a-d to ensure that tariffs in the new NESI meet the definition and prescription of contemporary electricity industry pricing by being cost reflective. Thus, in late 2010, having met a singular MYTO model pricing design for the eleven DISCOs across Nigeria, which was still not cost reflective, we set out through MYTO2 to disaggregate the pricing into 11 distinct plans in reflection of the varying cost of producing, transmission and serving the DISCOs. In the new MYTO2 order, we also restructured the building blocks of the pricing scheme by making it more realistic and further assumptions about the state and cost of operations in the industry.

We realized from the onset that we cannot shy away from appropriate pricing in the industry, as it will not attract the kind of capital required to improve and sustain activities. While thinking cost reflectivity in pricing, we also are very aware and sensitive to our duties under Section 80 (1) (a)-(g) of the EPSRA, which charges the Commission on customer protection. In pursuance of customer care, NERC has de-signed the tariff that every electricity distribution company will charge its customers in a manner that maximizes revenue and social equity. The National Electric Power Policy 2001 clearly identifies right pricing as key to a successful reform of the electricity sector; it provides that the tariffs in the industry should reflect the actual cost of producing, transmitting and

distributing electricity.In fulfillment of its statutory consumer charter, NERC

provided a lifeline tariff for poor consumers who consume not more than 50kwh per month; they pay a flat and universal N4/kwh. They also are exempt from paying fixed charges. This class of consumers are benefiting from a subsidy of N50 billion provided by the government, when government typi-cally does not promptly release the tranches of this fund, we still fool-proofed this subsidy process through a cross subsidy process which keeps lifeline tariff low by balancing the short-fall through the proceeds from other classes of consumers.

Residential consumers who use a single or three-phase meter also receive a bit of subsidy to avoid huge rate shock. Medium and small enterprises under commercial 1 are also subsidized by government and cross-subsidized by the bigger commercial and industrial consumers. The big caveat is that both the subsidy and cross-subsidy do not distort the mar-ket and do not undermine the revenue requirement of the industry. In addition, the Multi-Year Tariff Order (MYTO-2) succeeds in providing strong incentive for private sector investment in the value-chains of electricity, including the off-stream sectors of the industry without undermining the affordability of electricity by the urban and rural poor. It has properly priced the critical components of efficient services in the industry, including fuel costs, losses, O & M costs and metering to ensure sustainable improvements which, inevi-tably, lead to financial viability. In attaining the goal of long term financial viability, and attendant improved quality of service, what is required is a regulatory compact between the regulator and the utilities that clearly outlines service deliv-ery benchmarks and the requisite capacity to enforce such compact. We have been strategically consistent in building a NERC which has the institutional capacity to enforce the service implications of MYTO-2.A post-privatization (November 1, 2013) action plan developed by NERC for tackling financial shortfall in a pre-Transitional Electricity Market:Independent Embedded Distribution Network (IEDN): a tool for overcoming legacy constraints:

Among the numerous obstacles in the way of attain-ing financial viability is that of evacuation constraint. Part of the reason for reforming is the sustained decline of the national transmission system (grid). In Nigeria, the current carrying capacity of the grid is just above 8000MWs, and access is yet to span beyond half the national landmass. This, therefore, poses a great conundrum on how to get electrons evacuated from generation points to distributing firms. To tackle this problem in the interim while the network is being rehabilitated, NERC has come up with the concept of inde-pendent embedded distribution network (IEDN). Embedded Generation (EG) and Bulk Procurement (BP) Regulations of NERC are aimed at delivering accelerated financial viability by allowing DISCOs to, in the interim, purchase power from small scale producers, and also to mop up surplus power needs of industries in their localities. The BP Regulation enables distribution licensees, who are authorized, to pro-cure electricity via bilateral power purchase agreements. This localized arrangement being off-grid, crucially avoids the

Continued from page 7

z Amadi



national grid while it is still under in-tensive repairs. A combination of the deployment of EG and BP Regulations will ensure that emergency pockets of power, not exceeding 20MWs per unit, are injected into diverse facets of the chain, while DISCOs purchase these off-grid power at prices that are most cost effective to consumers.

The EPSRA 2005 at Section 62 and the Market Rules, as developed by NERC, obligate the sector regulator to develop a process that will govern pow-er procurement, especially during the TEM stage of the electricity market. The need to design and deploy the new EG Regulations was borne out of the regulator’s observation and forecast for

the near future demand for electricity in the country; the need to bridge the gap between supply and demand; the need to identify the type, location and size of both demand and supply side resources required to meet projected demands in the most economical manner and also the need to acquire the desired power through a procurement process that en-sures the lowest reasonable costs.The gas challenge: Smartly navigat-ing a tricky terrain:

We are, today, hit by an unscripted shortage of supply arising from disrup-tion and shortage in the supply of gas to power. This situation arises from both our inability to effectively protect gas

pipelines and provide effective policies and commercial frameworks for gas-to-power. Before 2010, we did not have an effective gas to power policy. This reflected in the disarticulation of the two sectors. Gas power plants were es-tablished without the certainty of gas supply. Now, this is changing. We are aligning power projects to gas supply and NERC is building electricity tariff model on the commerciality of gas-to-power. New gas pipelines are being constructed to reach power plants and gas supply and transportation agree-ments are being made bankable and enforceable. But the bad news is: in power mar-ket, these are structural problems that

are unyielding unless dealt with at the foundations. The good news is: be-cause they are structural, once solved, you get automatic results. So, in spite of the teething problems of gas supply, we can be confident that the future of electricity supply in Nigeria is bright because the crisis of gas-to-power is being structurally resolved. This is not a sorcerer’s sport. It is a process-based activity.

The challenge for this sector’s post-privatization is to provide enough power for a financially resourced dis-tribution company to sell to customers. Today, the DISCOs are not finding enough power to sell. The result is that

they are not able to meet their revenue requirements and, therefore, unable to finance reinforcement of the network in a manner that enhances reliability. When Nigerians complain that they don’t have power at their homes or of-fices, it is either that the DISCO has not received enough power from the grid or the DISCO has failed to strengthen its network such that it cannot reliably distribute the insufficient power it gets to the customers.

NERC is already cracking the hard nut of shortage of gas to power. We have held meetings with gas regulators and have settled on strategies to simul-taneously improve the commerciality of gas to power as well as increase the

amount of power going to the power plants. We are also improving on the quality of gas con-tracts such that gas sup-pliers are bound to sup-ply to power plants. The Ministry of Petroleum is increasing its effective-ness in management of pipeline construction. So, we are hopeful more pipelines will be availa-ble to carry gas to power plants.

But we are also get-ting more innovative. As part of unleashing more energy through private sector investment in embedded generation, we are looking toward

Liquefied Natural Gas as an alterna-tive to natural gas that is trucked to the power station to avoid the challenges of gas pipelines. Again, we can incen-tivize the gas-flare to power that con-verts the estimated 2 billion scf of gas flared daily to generate a cumulative 8,000mws of embedded power. We are set to mobilize medium entrepreneurs in the gas and financial market to see how to boost distributed generation so as to significantly improve power supply in the short time, while we wait for bulk trader power in the years to come.

z Dr. Sam Amadi is the Chairman/CEO, Nigerian Electricity Regulatory Commission (NERC)

•Electricity CEOs at the September 2014

meeting with NERC



ASUP Confers Amadi With Servant Leadership AwardThe Chairman/ Chief Executive Officer, Ni-gerian Electricity Regulatory Commission (NERC), Dr Sam Amadi , has been con-ferred with the award of Servant Leadership by the African Students’ Union Parliament (ASUP).Dr Amadi got the surprise recognition in his office at the NERC Headquarters, Ad-amawa Plaza, Abuja on the 2nd of July, 2014.In an emotion-laden voice, Amadi ex-pressed deep appreciation to the students’ association whom he tagged the future leaders of the country.ASUP is an umbrella body that covers students within the 54 African Union (AU) member states with core objectives of encouraging corporate and harmonious coexistence among member states’ students.

NERC Approves Interim Rules For Transitional Electricity Market, Enforcement Regulation For NESIThe Nigerian Electricity Regulatory Com-mission (NERC) has approved and signed into law, the rules for the interim period between completion of privatisation and start of the Transitional Electricity Market (TEM).The order which was signed by the Chair-man and Chief Executive of the Commis-sion, Dr. Sam Amadi, provides for regula-

tion which shall apply to energy produced and delivered as well as associated services during the interim period.The rules are in exercise of the powers con-ferred on the Commission by Section 96 of the Electric Power Sector Reform Act (2005).The interim rules are intended to cover all electricity taken from the transmission sys-tem by the distribution companies with adjustment made to account for any bi-lateral arrangements between generation companies (GENCOs) and distribution companies (DISCOs).The existing arrangements shall be main-tained to the extent that they are modified by the order of the Commission.

NERC Supports Workplace Health Among Staff With Innovacare Health SystemsHealth is of supreme importance, especially if you are straddled down with responsibil-

ities at the workplace and have limited time for leisure and exercise. It is in recognition of this that the Nigerian Electricity Regula-tory Commission took the opportunity to invite Innovacare Health Systems, a physi-cian-guided health and wellness promotion organisation, for its first Distinguished Vis-itors Programme for 2014, held on the 10th of April, 2014.The Distinguished Visitors Programme provides a platform for professionals from multiple fields to dialogue with the staff and management of the Commission. Innova-care Health Systems, founded by Dr. Chito Nwana, Dr. Toju Chike-Obi, and Nikki Esin, shared their experiences in the health sector as well as their methods for acquiring and retaining peak physical and mental fitness at the workplace with the Commission.

Abuja Distribution Company Visits NERC, Assures On Improved Customer ServiceThe Nigerian Electricity Regulatory Commission (NERC) on Tuesday, 2nd April, 2014, received the management and shareholders of the Abuja Electricity Distribution Company led by its Man-aging Director/Chief Executive, Neil Croucher, accompanied by Managing Director of CEC Africa, Michael Tarney and representative of the United Bank for Africa, Helen Brume.According to the DISCO, the major aim of the visit was to intimate the Commis-sion on its vision in the light of the ex-pectations of electricity customers and the industry at large. Managing Director/Chief Executive of the Abuja Electrici-ty Distribution Company (AEDC), Neil Croucher, disclosed that the company was in the process of establishing a call centre

z Chairman/CEO, NERC, Dr. Sam Amadi (r), exchanging ideas with Ambassador (Dr)Godknows Igali, Permanent Secretary, Federal Ministry of Power during the ministry’s working visit to the Commission

z Dr. Sam Amadi (m) being handed a plaque by a member of the visiting Chinese delegation while Engr. (Dr) Chris Ekpenyong of Temps Engineering Ltd looks on. Behind, Dr Uche Okoro of the NERC Chairman’s office


CORPORATE BRIEFS

to deal with consumer related issues.The delegation also informed the Com-mission of its desire to change the name of the company and also rebrand it for better and efficient performance. Shareholder and Managing Director of CEC Africa, Michael Tarney, re-vealed that it was financing the Abuja DISCO up to 99 per cent in collabora-tion with the United Bank for Africa.

NERC Holds Stakeholder Meeting With NLC LeadershipAs part of its ongoing engagement with critical stakeholders, the Nigerian Elec-tricity Regulatory Commission on the

10th of June, 2014 met with the lead-ership of the Nigeria Labour Congress (NLC), which included its President, Abdulwaheed Ibrahim Omar and his deputy, Joe Ajaero.Top on the agenda were the on-going reforms in general and an update on what NERC has been doing since the takeover of the electricity companies by private hands.Of major concern to both parties was the billing of electricity customers such that electricity distribution companies charge only what has been approved by the Commission.The labour chieftains were of the opin-ion that unless the Commission de-vices a means of monitoring operators to ensure they abide by the regulated tariff, electricity consumers would be exploited by their service providers, whom they claimed have continued to

clamour for an increase in tariff.The Nigerian Electricity Regulatory Commission has always engaged la-bour unions and other stakeholders in its activities, especially on issues to do with policy implementation.

NERC Hosts Senate Committee On Privatisation ...Urged To Wield The Big StickThe Nigerian Electricity Regulatory Commission has reiterated its stance to work with electricity operators, with a view to ensuring a successful and sustained industry in spite of the hiccups facing the newly priva-

tised electricity market.The Chairman/CEO of the Com-mission, Dr. Sam Amadi, repre-

sented by the Vice-Chairman of the Commission, Muhammed Lawal Bello, made the declaration when the Commission received a dele-gation of the Senate Committee on Privatisation, led by its Chairman, Senator Olugbenga Obadara, on the 28th of May, 2014.Speaking during the visit, the NERC Vice-Chairman commended the committee members for, particularly, giving the Commission the necessary support to complete the huge trans-actions that ushered in the privatised electricity market, stating that “there was no reference point before this. The issue now is to pursue the reform to make sure it succeeds.”In his remark, Senator Obadara said the committee was well aware of the enormity of the job before the Com-mission, expressing joy that NERC is the bridge between the operators and the people.He, however, suggested the need for the Commission to wield the big stick to make sure rules are followed.

NERC Supports Forward-Thinking Electricity Industry StandardsThe Chairman/CEO of the Nigerian Electricity Regulatory Commission, Dr. Sam Amadi, has called for the need to embrace changes in technology in the

Nigerian Electricity Supply Industry (NESI) in order for the system to work in tandem with the times.

z MD/CEO, National Social Insurance Trust Fund (NSITF), Umar Munir Abubakar (l) and a top official of the Fund during their working visit to NERC

z L-r: NERC Chair, Dr Sam Amadi, NLC President, Comrade Abdulwahab Omar and his deputy, Joe Ajaero during an electricity stakeholders meeting in Abuja


CORPORATE BRIEFS

He stated this during the presentation of the Nigeria Electricity Supply and In-stallations Standards (NESIS) document to the Commission by the Chairman of the Technical Working Group (TWG), Engr. Foluseke Somolu, which held at the Commission’s Headquarters on the 23rd of May, 2014.While commending the document being presented, he added that, “We expect a high quality document because of the composition of the technical working group, made up of lawyers, professors and engineers.”The TWG comprised members represent-ing a wide spectrum of the electricity in-dustry stakeholders, including, the Nigeri-an Society of Engineers (NSE), Standards Organisation of Nigeria (SON), Transmis-sion Company of Nigeria (TCN), Federal Ministry of Power, Lagos State Electricity Board, Metering Code Panel (MCP), Dis-tribution Code Review Panel (DCRP), representatives of the Distribution Com-panies, Licensed Electricity Contractors Association of Nigeria (LECAN), Rural Electrification Agency (REA), professors from three Nigerian universities, two law firms, and the Nigerian Electricity Reg-ulatory Commission (NERC).

NERC Inaugurates Forum Members ...Urges Quick Dispensation Of ComplaintsThe Nigerian Electricity Regulatory Com-mission (NERC) has called on electricity distribution companies to make it a duty to expedite action on complaints brought to them by electricity customers, before

they get to the NERC Forum Office.

Chairman/CEO of the Commission, Dr. Sam Amadi, gave the marching order during the inauguration of members of three forum offices, namely, Benin, Jos, and Yola, on the 20th of May, 2014.

He said the forum will serve as an appellate court, to dispense with complaints that may not have received satisfactory out-comes by the Customer Care Unit (CCU) of distribution companies.

Each forum has five members with representatives from the Manufac-

turers Association of Nigeria (MAN), a non-governmental organisation (NGO), the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Consumer Protection Council

(CPC), and the Nigerian Society of Engineers (NSE).

He said it is the prerogative of the forum to protect electricity customers, pointing out that the forum must be seen to be impartial and neutral.

Forum Offices already existing include; those of Abuja, Eko, Ikeja, Enugu, Port-Harcourt, Kano, Kaduna and Ibadan.

ALSCON Plc Seeks Issuance Of On-Grid LicenceThe Managing Director/CEO of ALSCON Plc, Mr. Dmitry Zavy-alov, has met with the Chairman/CEO of the Commission, Dr. Sam Amadi, to discuss the issuance of an on-grid power generation licence for the production need of the alu-minium plant located in Ikot Abasi, Akwa Ibom State.

He decried the collapse of alumin-ium companies in Nigeria, stating, “Many aluminium companies are facing difficulties and we were forced to stop production due to losses”, citing the interruption in power supply as the major reason for this.

Dr. Amadi affirmed that the Com-

mission had received their applica-tion for the licence, stressing the need for the application to undergo due process, after which a licence will be issued.

z At the commissioning of Kano Forum Office (L-r): Secretary to Kano State Govt, Suleiman Bichi, Commissioner Abba Ibrahim of NERC, representative of the Emir of Kano and Abdul Yusuf

z jpg

z At a press briefing with journalists after NERC’s meeting with electricity CEOs. The Commission’s Chair, Dr Sam Amadi (2nd r) speaks as Mack Kast, MD of TCN (4th r), Adeoye Fadeyibi, MD, Ughelli Genco (3rd r) and Robert Dickerman (1st r) of Enugu Disco listen with rapt attention.


CORPORATE BRIEFS

NERC Tells DISCOs To Close Metering GapThe Chairman/CEO of the Nigerian Electricity Regulatory Commission, Dr. Sam Amadi, has reiterated the urgency to close the nation’s meter-ing gap, while, at the same time, urg-ing for standardisation of customer estimation, avoidance of extortion

and exploitation by both the utility companies and the customers.

“With the wide gap in metering, which was put at 54.8% in 2012, resulting in very high estimation, it became necessary to introduce a temporary measure for billing cus-tomer who are not effectively me-tered,” he charged.

According to him, Customer Service Standard Regulation on meters stip-ulates that, “if there is no electrici-ty meter to record electricity usage at a customer’s supply address, the DISCO must base customer’s bill on estimated energy consumption, which is calculated in accordance with a method approved by the Com-mission.”

He noted, “Basically, estimation should be on verifiable scientific method for monitoring and dispute resolution purpose. It must also be reflective of local consumption pat-tern and close to actual readings previously obtained.”

Power Minister Tasks New Investors On Generation Of More PowerThe Minister of Power, Prof. Chinedu Nebo, has made an appealed to the new investors in the electricity market to synergize and generate as much

power as possible for optimum use by the citizens.He made the appeal during his maid-en visit to NERC on the 15th of May 2014.The Minister whose visit coincided

with the monthly meeting of Chief Executive Officers of the electricity distribution and generation compa-nies, which the Commission hosts, spoke on the setbacks that the elec-tricity market was facing, with regards to gas supply, and stressed the desir-ability to do something fast.

NERC Receives Turkish Ambassador, Construction Experts… Urges Adherence To FG’s PolicyThe Nigerian Electricity Regulatory Commission on Thursday, the 24th of April, 2014, hosted the Turkish Am-bassador to Nigeria, Mustafa Pulat, who led a delegation of construction experts, known as the Turkish Con-struction Forum to the Commission on a working visit.Mustafa was received by the Chair-man, Dr Sam Amadi, represented by the Commissioner, Government and Consumer Affairs, Dr Abba Ibrahim, who described the visit as timely in the light of the new power sector.Abba told the visiting delegation that while Nigeria welcomes foreign inves-tors, the Federal Government policy encourages local content partnership, noting that Jos Electricity Distribution Company already has Turkish investors.

z At the Anambra Deputy Governor’s official visit to NERC: Dr Sam Amadi (l) and Dr Nkem Okeke, the Deputy Governor

z Dr Sam Amadi giving promotional materials to Dep Gov Nkem Okeke during the visit

z jpg


CORPORATE BRIEFS

AT POWER MINISTER’S WORKING VISIT TO NERC

z The minister, Prof Nebo responds as Dr Amadi listens

z (L-r) Dr Igali, Prof Nebo, Dr. Amadi, and Engr Mary Awolokun, Commissioner, Engineering, Standards and Safety Division, NERC

z Dr Amadi (m) addressing the minister (r) and his entourage as Vice-Chairman, NERC, Dr Muhammed Lawal Bello listens with rapt attention

z NERC commissioners conducting the delegation round the Commission. (L-r): Dr Sam Amadi, Perm Sec, Ministry of Power, Ambassador (Dr) Godknows Igali, Prof Chinedu Nebo and Mr Eyo Ekpo, Commissioner, Market Competition and Rates, NERC

z The minister (m) sandwiched by Dr Amadi and Dr Bello

z Prof Nebo (l) and Dr Amadi

z Still going round: Dr. Amadi (l), Prof Nebo (r), Dr Igali and others

z NERC Chairman, Dr Sam Amadi (r) welcoming the Honourable Minister of Power, Prof. Chinedu Nebo to the Commission


NERC IN PICS

AT NERC MANAGEMENT’s TOUR OF MEDIA HOUSES IN LAGOS

z At The Sun Newspapers; Dr Amadi (m) poses with top man-agement staff during the visit

z NERC Chairman, Dr Sam Amadi presenting a plaque to the GM, Special Duties, Channels TV, Mr. Steve Jodu as Engr. Mary Awolokun watches in admiration

z NERC Commissioners and management during The Guardian visit

z Dr Amadi (r) addressing top management of The Guardian Newspapers during the visit

z In a group photograph during the visit; NERC Commissioners: Dr Abba Ibrahim (l), Dr Sam Amadi (3rd l), Mr Eyo Ekpo (4th r), Mr Patrick Umeh (2nd r) and Board/Management of NSITF. MD/CEO of the Fund, Umar M. Abubakar stands 4th left

z NERC Chairman, Dr Sam Amadi (r) presenting enlighten-ment materials to the MD/CEO, NSITF, Umar M. Abubakar (l) during the Fund’s working visit to the Commission

z NERC Commissioners (L-r): Mr Eyo Ekpo, Dr Sam Amadi (Chair), and Engr Mary Awolokun during the launching of the Health and Safety Manual in Abuja

z A cross section of electricity CEOs at last monthly meeting with NERC


NERC IN PICS

z Dr Abba Ibrahim, Commissoner, Government & Consumer Affairs, NERC (r) handing over the operating licence to Sandy Eyal, Country Director, Yellowstone Power

z Members of the Kano Forum Office at the commissioning on 4th June, 2013

z SSG to Kano State Govt, Suleiman Bichi (l) cutting the tape to declare the Kano Forum Office open as other dignitaries applaud

z Chairman/CEO, NERC, Dr Sam Amadi (l) making a presenta-tion to Mr Alex of Abuja Electricity Distribution Company during the company’s working visit to NERC

z At the Kaduna Forum Office commissioning: Dr Abba Ibrahim (l), Dr Steve Andzenge (2nd r) and other dignitaries

z (L-r) Eyo Ekpo, Skip Kirsinger, Imeh Okon,Kate Lukos, Sharon Pauling, Dr Sam Amadi, Andrew Herscowitz, Mary Awolokun and Bent Ubamadu , when the Africa Trade Initi-ative paid a courtesy call on NERC recently

z NERC Commissioners, staff and members of the Kaduna Forum Office during the commissioning

z Adeoye Fadeyibi, MD, Transcorp Genco Ughelli making a remark at the September electricity CEOs’ meeting with NERC


NERC IN PICS

nerc powerwatch october 2014

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