NSE_BauchiBranchOGM_29022012

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STANDARDS,STANDARDIZATONAND ELECTRICITY REGULATION

IN NIGERIA

BY

ENGR. T. S. G. WUDILMNSE, MNIM, MIEEE, IMASSE, CRS

NIGERIAN ELECTRICITY REGULATORY COMMISSION

ADAMAWA PLAZA, FIRST AVENUE OFF SHEHU SHAGARI WAY, CBD,PMB 136, GARKI, ABUJA.

PRESENTED TO

THE NIGERIAN SOCIETY OF ENGINEERS, BAUCHI BRANCH, DURING THE FEBRUARY 2012

ORDINARY GENERAL MEETING29th FEBRUARY, 2012



OUTLINE Introduction

Aims and benefits of StandardsElements of Standards/Regulations

Developments

Elements of Regulation

Electricity Regulation in Nigeria

NERC’s efforts in StandardizationThe Way Forward

Conclusion



Introduction By the turn of the 19th century, standardization was already

recognized as a powerful tool to increase productivity throughinterchangeability and reduction of variety.

Today, organized standardization has become an important elementof infrastructure needed for regulation and the healthy growth of

These requirements are sometimes complemented by a descriptionof the process, products or services.

This presentation seeks to address issues on definitions of Standard, Standardization, Aims and Benefits of standards,

Elements of Standards Development, Role of Standards inEngineering Education, Elements of Regulation, ElectricityRegulation in Nigeria , NERC’s efforts in Standardization, The WayForward and Conclusion.



Aims and Benefits of Standards

• What is a standard?

Standard can simply be defined as an agreed way of doing things but moreelaborately it denotes a document established by consensus and

approved by a recognized body, that provides for common rules,

guidelines or characteristics for activities or their results, aimed at the

.

• What is standardization?

International Organization of Standardization, ISO defines Standardization

as the activity of establishing with regards to actual or potential

problems, provisions for common and repeated use, aimed at the

achievement of optimum degree of order in a given context .



Aims and Benefits of Standards.. The primary aims of standards are:

◦ Compatibility

◦ Guarding against factors that affect the health and safety of consumersand Environmental protection;

◦ Transfer of technology;◦ Removal of trade barriers; and◦ .

The benefits of standards include:◦ Assurance of the quality of goods purchased and services received◦ Elimination or reduction wasteful material or labour;◦ Provision of a workable basis for acceptance or rejection of goods /

services or consequential disputes, if any;◦ Provide a base for research and development for further improvement

of goods and services.◦ Provide for transparency and fairness in the regulatory environment.

Electricity on Demand



Elements of Standards/Regulation

Developments

• Consensus

• Openness

• Transparency

• Balance• Due process

• Rights to Appeal




What Standards should contain

Best practices (things that have worked

well)

Lessons learned (things that haven’t

worked well)Recent research results




Role of Standards in Engineering Education

Few engineering students are introduced to

standards in school, and even fewer aregiven an understanding of the standardsdevelo ment rocess

Too few engineering professors understandthe utility and purpose of standards, theprocess of origin and maintenance, or their

importance and application in the workplace

[ASME]




Role of Standards in Engineering Education..

• Workforce needs to be prepared to

understand and apply standards• Students need greater exposure to

standardization to osition themselves

competitively• Curricula need to stay market-relevant,

and standards education is a perfect

medium to marry technical design to real-world issues.




Elements of Regulation

• Clarity of roles and objectives

• Autonomy of regulator

• Accountability of regulator

• Participation by public• Transparency of process

•Predictability of outcomes




Role of Standards in Addressing

Regulatory Initiatives

Through standards, compliance with new and changing regulations,legislation, and related initiatives can be more efficiently achieved.

To prevent fragmentation within an industry, there must be a singlesource for harmonization and interoperability of data standards.

Competing standards will not only end in promoting difficulty incommunication but will also complicate compliance withregu a ons.

Setting bounding parameters to keep all human and automatedactivities within the defined level of risk and performance and toensure compliance is the task of regulatory bodies. This can beachieved through national standards that align with international

best practice within the industry.




The electricity sector in Nigeria went through a reform process aimed at

unbundling the vertically integrated state owned electricity industry to

enhance competition, efficiency and compliance to economic, technical andsocial standards in the industry.

The Power Holding Company of Nigeria (PHCN) was vertically unbundled into

18 successor companies.

The Nigerian Electricity Regulatory Commission (NERC) was created by theElectric Power Sector Reform (EPSR) Act, 2005 to ensure that electricity is

safe, reliable, affordable and available to all consumers

NERC was also required by the EPSR Act to develop and approve standards,

codes and manuals that will be binding on all licensees and stakeholders

within the industry

The figure below shows different regulatory models in the world.




UtilityRegulatorGovernmentGovernmentGovernmentGovernment

Ministry’s

RegulatoryModel

Utility

UtilityRegulator

RegulatorGovernmentGovernmentGovernmentGovernment

GovernmentGovernmentGovernmentGovernmentAdvisoryRegulatoryModel

IndependentRegulatoryModel

Fig. 1: Different International Regulatory ModelsFig. 1: Different International Regulatory ModelsFig. 1: Different International Regulatory ModelsFig. 1: Different International Regulatory Models



NERC Efforts in Standardization The Commission has developed and implemented simplified but comprehensive license application

and assessment procedure for new and existing generation, transmission, distribution and supply

companies in Nigeria.

The Commission has developed Health and Safety Manual for the Electricity Industry with support

from United States Trade and Development Agency (USTDA). This is currently undergoing

codification

The Multi-Year Tariff Order (MYTO) developed by the Commission is for the determination of

charges and tariffs for electricity generation, transmission and retail.

The technical operation of the industry is regulated by the Grid code, Distribution code and

Metering Code

Customer Service Codes for improved service delivery are contained in the Customer Complaints

handling standards and procedures, service standards of performance, connection and

disconnections, meter reading and billing standards.



NERC Efforts in Standardization NERC Licensing Requirements

◦ The EPSR Act states that “no company shall construct, own or

operate and maintain a generation, transmission or distributioncompany except it has been licensed by the Commission”

◦ The Commission has given operating license to: 18 successor companies of PHCN;

21 On-Grid Generation Companies; 4 Off-Grid Generation IPPs; 1 Embedded Generation IPP; and 2 Independent Distribution Companies. The total installed capacity of these generation companies is

about 16,187.5MW.

◦ The procedures for application for license and the lists of mandatoryrequirements can be found in License Application Form and theLegal Division of the Commission



NERC Efforts in StandardizationHealth and Safety Manual:

◦

The Manual was launched on Thursday, May 28, 2009 to set theNigerian Electricity Health and Safety Standards.◦ The Manual, which has six parts, is a technical reference

document with both general and industry-specific examples and.

◦ The practices defined in the Manual are legal obligations andshall be enforced by the Commission

◦ The Commission has trained Stakeholders in Enugu, Lagos andKaduna States for the enforcement and compliance with the

Manual in their respective companies.◦ The Manual complies with international best practices as it

contains the ANSI, OSHA, CSA, and ASTM standards.



NERC Efforts in Standardization• The Multi – Year Tariff Order (MYTO)

– The objects of the Commission in developing MYTOwas to ensure that the prices charged by licensees arefair to consumers and are sufficient to allow thelicensees to finance their activities and to allow forreasona e earn ngs or e e c en opera on;

– It provides a 15-year tariff path for the electricityindustry with yearly minor adjustments and majorreviews every five year;

– The methodology used to determine the MYTO tariff is the Building Blocks approach;

– The MYTO is currently undergoing a major review.



NERC Efforts in StandardizationThe Grid Code:◦

Is designed to facilitate competition in the productionand supply of electricity in Nigeria for all users of theTransmission System and TCN itself;

◦ Consists of standards and procedures relating to Planning Code;

Connection Conditions;

Operation Code.

◦ Complies with IEC and ISO 9001 standards on thetransmission system issues;

◦ Has to be read in conjunction with the Market Rulesand Distribution Code and other documents forcomplete understanding of the system.



NERC Efforts in Standardization The Distribution Code

◦ Is designed to facilitate competition in the production andsupply of electricity in Nigeria for all users of theDistribution Networks without any discrimination

◦ Consists of standards and procedures relating to:

Distribution operation code; Construction and maintenance code; and

Data registration code.

◦ Complies with IEC standards on distribution network issues;◦

Has to be read in conjunction with the Market Rules andGrid Code and other documents for completeunderstanding of the system.



NERC Efforts in Standardization The Metering Code

◦ Is designed to establish the technical, design and operational procedure for the

commercial metering system.◦ It also specifies the required standard for accuracy, calibration, approval,

certification and testing of meters and metering equipment in Nigeria;

◦ Consists of standards and procedures relating to Grid Metering Code;

;

◦ Comply with IEC standards on these issues;◦ Has to be read in conjunction with the Market Rules, the Grid Code,

Distribution Code and the Metering Market Procedures for completeunderstanding of the system.

In line with the Metering Code, the Commission inaugurated a MeteringCommittee on October 8, 2009.

The Metering Committee is to ensure that the effective operation of theMetering Code is observed in the Sector.

The Gird and Distribution Code review Panels were inaugurated



NERC Efforts in StandardizationS/N GRID CODE

STANDARDS

REFERENCE

1 IEC 61000-3

2 EN 50160:2000

S/N DISTRIBUTION

CODE

STANDARDS

REFERENCE

1 IEC 61000-3

Table 1: shows the standards

in the Grid Code

3 IEC/TR3

- -

(1996) P.45

4 ISO 9001

5 IEC60045

P.56

Table 2: shows the standards

in the Distribution Code

2 IEC 61000-4-7

3 IEC 60909(1)



NERC Efforts in StandardizationS/N METERING

CODE

STANDARDS

REFERENCE

1 IEC 62053-222 IEC 62053-21

3 IEC 62053-11

4 IEC 62053-23

S/N HEALTH AND

SAFETY MANUAL

REFERENCE

1 ANSI/IEEESTD 493, MAY 1995

2 ANSI Z 41-1991

3 ANSI STD 80-1986

Table 3: Shows the Standards in the Metering Code

5 IEC 60044 Part I, II, III

6 IEC 62056-21

7 IEC 60186

8 IEC 60136

9 IEC 61268

10 IEC 60252

11 IEC 60253

12 IEC 60270-2000Table 4: Shows the Standards in the Health andSafety Standards Manual

4 CSA 1982

5 OSHA

STANDARDS

1926; 1990

6 ASTM 1050-87

7 ASTM F 478-92

8 ANSI B 30.5-1994

9 SARA ACT OF 1986



NERC Efforts in StandardizationCustomers service quality◦

NERC has standards and procedures for ensuring thatconsumers get value for money in the followingdocuments developed and approved by theCommission:

Meter Reading, Billing, Cash Collection and CreditManagement Regulations;

Connection and Disconnection Procedures;

Customer Service Standards of Performance;

Customer Complaints Handling: Standards and Procedures;

◦ These documents comply with international standardson consumer protection and rights.



The Way Forward More efforts to create awareness on the role of standards in

engineering education, research and practice in Nigeria

Regulatory agencies in Nigeria have to leave up to the expectations of the Nigerian people through open, transparent and balanced

stakeholder engagements during standardization and regulatory

Government policies should encourage training and research onstandards and standardization.



Conclusions• A global market like electricity require global standards

• There is the need to develop Nigerian Standards for the Nigerian

Electricity Sector as standards improve efficiencies, performance andoperations of the industry.

• There is the need to incorporate standards elements in our engineering

curriculum in our universities and ol technics

• Nigeria is waiting for investors to come and harness the abundant energyresources to generate electricity under the regulation of NERC codes and

international standards.

• In this presentation we have discussed Standard, Standardization, Aims

and Benefits of standards, Elements of Standards Development, Role of Standards in Engineering Education, Elements of Regulation, Electricity

Regulation in Nigeria , NERC’s efforts in Standardization, The Way Forward



THANK YOU


Adamawa Plaza, Plot 1099 First Avenue,

Off Shehu Shagari Way,

Central Business District,

AbujaWebsite: www.nercng.org

E-mail: [email protected]

NSE_BauchiBranchOGM_29022012

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