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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
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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
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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.
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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 .
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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
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Electricity on Demand
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Elements of Standards/Regulation
Developments
• Consensus
• Openness
• Transparency
• Balance• Due process
• Rights to Appeal
Electricity on Demand
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What Standards should contain
Best practices (things that have worked
well)
Lessons learned (things that haven’t
worked well)Recent research results
Electricity on Demand
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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]
Electricity on Demand
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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.
Electricity on Demand
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Elements of Regulation
• Clarity of roles and objectives
• Autonomy of regulator
• Accountability of regulator
• Participation by public• Transparency of process
•Predictability of outcomes
Electricity on Demand
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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.
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Electricity Regulation in Nigeria
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.
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Electricity Regulation in Nigeria
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
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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.
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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
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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.
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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.
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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.
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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.
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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
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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)
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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
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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.
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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.
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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
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THANK YOU
Electricity on Demand
Adamawa Plaza, Plot 1099 First Avenue,
Off Shehu Shagari Way,
Central Business District,
AbujaWebsite: www.nercng.org
E-mail: [email protected]