Changing the Electricity Power Situation in Nigeria in 1 Year!
Thinking outside the box!
Facts 1.Nigeria's power situation is very bad. 2.Nigerians need power. 3.There is illiquidity in the entire value chain. 4.Millions of unmetered customers 5.Power theft is on an alarming scale. 6.None-cost reflective tariff
Ideas for a Step Change 1.Stop talking about the power price issues across the value chain completely. 2.Warehouse the current debt across the value chain.
Ideas for implementation in the short term Organize a one-week workshop in Lagos or Abuja across the entire value chain. The DISCOS will stay for 7 days.
Day 1: Meet the Discos to have facts on:
Number of unmetered customers across all the DISCOS.
Number of unmetered customers who have already paid for meters.
Clear demarcation of their area of coverage across the country.
Day 2: Meet the Meter Manufacturers to have facts on:
Their cities or states of operation.
Present the number of meters required by each DISCO to them.
Select meters from suppliers that can meet the demand of each DISCO.
Agree on a 6-month maximum timeline to ensure meter availability.
There is a must-have requirements checklist before approving any meter supplier.
Ensure each meter supplier covers only one DISCO.
Each DISCO is required to provide the current price of their meters.
Day 3: Meet the GENCOs to have facts on:
Their areas of operation.
Present installed generation capacity
Present available generation capacity
Their power generation modes are gas, diesel, renewable, etc.
Day 4: Meet the TCN
Their areas of operation.
Present installed transmission capacity
Present available transmission capacity
Their states or towns of coverage.
Day 5: Meet the States Commissioner of Power or State Governors (virtual) in conjunction with DISCOS, GENCOS, TCN, and all stakeholders.
Encourage all states to set up their Power Regulatory Commission within 3 months.
Promise all states a monetary incentive if they deliver their commissions within 3 months. #450billion in 2024 budget will be useful here. #10b/state once they meet SERC
Introduce the meter suppliers for each DISCO to their respective state governors.
Explain the new 1-year power plan to the governors.
Each DISCO, TCN, and GENCOS covering each state or zone will be like independent countries operating their own pricing regimes depending on the variables within the state or zone.
The cost-reflective pricing discussion will only be at the state level.
There is no national pricing for any part of the power value chain.
States without any GENCO coverage will be provided with a power company to provide temporary power within 6 months through generators, while power stations will be built within 1-2 years to cover the states.
States with completed IPP powered by solar, gas, or diesel that are currently not operating because of the pricing regime will be allowed to provide power immediately to willing buyers in their states without any impediment.
All the major IOCs in Nigeria, such as TotalEnergies, Shell, and ExxonMobil, should be encouraged to finance solar power projects in the Northern States with a cost-reflective tariff based on the willing producer, willing buyer law. TotalEnergies has one completed Solar powered project in Katsina which was not operational due to non agreement on cost reflective tariff.
You can investigate this issue.
Day 6: Meet the States Commissioner of Power or State Governors (virtual) in conjunction with DISCOS, GENCOS, TCN, and all stakeholders.
Prepare the 1-year plan and distribute it to all stakeholders for review.
Transfer all security issues to the governors and all the security agencies.
Meet with the Ministry of Finance to decide on the best long-term bond option for the power debt.
Communicate the payment plan for the existing debt to all stakeholders once it is agreed.
Day 7: The closing day of the workshop.
Present the 1-year plan to all stakeholders.
Clearly, state pricing for all parts of the value chain will be managed at state levels, depending on the operating conditions and other variables in the state or zone.
National Electricity Regulatory Commissions (NERC) will only oversee the activities of State Electricity Regulatory Commission (SERC) and intervene in cases of disputes between SERC and any of the stakeholders in the electricity value chain.
Q&A session with the media with all stakeholders’ present answering their relevant questions.
Share the quarterly review meeting with all stakeholders.
Share the quarterly communication plan with the media.
