Académique Documents
Professionnel Documents
Culture Documents
Presentation Flow
o Nigerian Power Landscape
o Power Sector Reform
o Investment Opportunities
o About BEDC
o Actions taken so far
o Way Forward- Critical Issues for Success
Benin Disco
Nigerias per capita electricity consumption is one of the lowest in the world
accounting for only 3% of South Africas.
Low Generation
capacity
High Self
Generation Cost
Self-generation of
electricity (from diesel and
petrol generators) is
conservatively estimated at
a minimum of 6,000 MW
i.e. more than twice the
average output from the
grid during 2009.
Stalled expansion in
Nigerias capacity
combined with high cost
of diesel and petrol
generation has severely
crippled the growth in the
countries productive and
commercial industries..
If situation were to
persist, the cost by 2020 in
terms of GDP would be
around USD 130 Bn
Manufacturers pay in
excess of N60/kWh on
diesel or LPFO
generation
Enabling Legislation
2001-2005
Unbundling Process
Regulation Process
Market Structure
Privatisation
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Monthly Remittance to MO
DISCO
Eko
Ikeja
Ibadan
Kano
Abuja
PH
Enugu
Benin
Kaduna
Jos
Yola
97.65%
87.55%
65.37%
62.97%
53.5%
47.45%
41.24%
37.88%
33.16%
20.70%
0%
% Power Allocation
11%
15%
13%
8%
11.5%
6.50%
9%
9%
8%
5.5%
3.5%
NIGERIA
States-
36 state +FCT
Local Govt-
774
Local Govts -
77
Households -
4.6 million
Population -
13.2 million
HouseholdsPopulation-
32 million
160 million
Energy Available-
20,000 mw
625 mw
- 52%
N 7.89per kwh
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Coverage
Licensed IPPs
Azura Power West Africa Limited
License: Generation On-Grid 450MW
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EDO
DELTA
ONDO
EKITI
AV. AVAIL.
(HRS)
12.17
10.09
7.60
11.52
EDO
DELTA
ONDO
EKITI
AV. AVAIL.
(HRS)
19.52
19.89
10.48
19.44
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Status At Takeover
Network Condition:.
Aged, Undersized & over extended High Tension/Low Tension lines.
Overloaded Feeders and Transformers
Obsolete & faulty switchgears.
Poor maintenance practices
Poor Health and Safety Practice
High level of losses
Customers issues:
Over Billing of customers
No service orientation to customers
Staff collecting money illegal from customers
Illegal Connection & stealing of power by customers
Inadequate metering
Inadequate Power supply
Management Focus
BEDC management focus is to address the rot in asset and to reposition the
company in the path of :
Providing good service to the customers
Ensuring operational viability
Ensuring financial viability
Meeting the requirements of the regulators, especially NERC
Having well trained, motivated and highly competent workforce
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19
Challenges
In order to make progress customers need to pay for power used. Only 48% of
power bill is currently being collected in Edo. High level of power theft and
bypass is taking place.
Over 8,000 backlog of meters paid by customers (in Edo, Delta, Ondo, Ekiti)
under previous regime not serviced need to be sorted out
Some Staff benefits existing without fund backing by previous management need
to be sorted out
High volume (30%- 200000) of estimated billing need attention inherited need to
be sorted out over time
Contingent liabilities/ Judgment debts arising from pre takeover actions need to
be sorted out
Customer enlightenment on various issues need to be done eg,
Estimated billing
Fixed Charge
Obsolete meters
21
Conclusion
As at today:
FGN /BPE have collected money- total of $ 2.6 billion from all investors (Gencos &
Discos) & is SMILING
Most staff of PHCN have collected money- total of N 380 billion as severance pay & are
SMILING
Union has collected N6billion to N7billion as their share of workers benefit & SMILING
Core investors are out of money and paid for assets that they are only starting to know
about 9months after they should have had access. They are NOT SMILING
Public is expecting drastic improvement in power availability overnight- They are NOT
SMILING
Findings by all investors have indicated that several of the data given to the investors were
wrong and inflated (customer base, ATC&C Loss level
The above applies that tariff structure was wrong and will eventually have to increase if
investment is to take place
The current interim rule had to be introduced because several parameters for TEM is not yet
in place
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Conclusion
6MONTHS SHADOW MANAGEMENT THAT WAS NOT ALLOWED TO START BASED
ON AGREED CONTRACT IN FEBRUARY 2013 ONLY JUST BEGONE ON 1ST
NOVEMBER 2013 FOR ALL GEMCOS AND DISCOS
ROT OF OVER 25 YEARS CANNOT BE WIPED OUT WITHIN A SHORT TIME
PUBLIC OUTCRY IS EXPECTED TO FIRST INCREASE AS WE ATTEMPT TO
REARRANGE THE SYSTEM
WE ALL NEED UNDERSTANDING AND SUPPORTIVE STAKEHOLDERS FOR ALL OF
US TO MAKE A DIFFERENCE
PROCESS IS A JOURNEY NOT AN OVERNIGHT RACE !!!!!!!
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