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As the present
Nigerian government is focused on ensuring that the relevant
infrastructure for stable power supply is in place, since stable and
affordable power supply effectively is the bedrock of the society, let
us this week analyse the role that private business, public sector and
information technology as an enabler need to play in achieving this
objective.

Stable and
affordable electricity which we crave for as a nation can be discussed
under the broad headings: generation of adequate power capacity,
effective distribution/maintenance of the infrastructure, marketing and
sales, and implementing accurate billing/payments mechanism or process.

So in ensuring that
we have stable power supply, it makes sense to rely heavily on the
private sector, since it is a proven fact that when a service is based
on competition, profit making, and investors monies are at stake, the
likelihood of maintaining continuity, reliability and efficiency in the
service provision is more likely to be achieved and the consumer is
better served.

In more advanced
countries, particularly in the United Kingdom, every stage of power
supply is privatised and I accept that this model has inherent
disadvantages, as there is clearly a junior role for the state to play
not only as a regulator but in the crucial role of power generation,
distribution, and maintenance of the underlying transmission
infrastructure.

Generation of adequate power capacity

Since we don’t have
an efficient power infrastructure base in Nigeria it makes sense that
both the state and the private sector are involved as partners in
ensuring the establishment of such infrastructure.

The state or its
agencies steer this partnership in ensuring that the objective is
achieved from a holistic point of view whilst the private sector
organisation whose primary objective is to provide an efficient service
and return profit to its shareholders has no choice than to deliver.

In such an
arrangement, even if it is just one company providing this service such
as is obtained in the UK where the National Grid performs this role, it
is must be target driven and based on clear, enforceable service level
agreements with built in severe monetary penalties.

Distribution and maintenance of the power transmission infrastructure

Again the relevant
infrastructure needs to be implemented and maintained to ensure power
is effectively distributed and clearly managed as a part, private and
public initiative (PPP) for the same reasons highlighted earlier.

The electricity
transmission network which includes cables and poles that ensure that
power is transmitted from where it is generated into our homes,
offices, shops must be maintained and looked after.

Marketing and sale

To ensure that a
competitive service is provided to the consumer, the actual sale of
power to the end user ought to be fully privatised and there should be
a minimum of five companies providing this service, just like in other
developing nations.

The consumer can
decide to choose any supplier based on price, quality of service,
customer service and responsiveness among others. If necessary it may
be best to invite foreign based electricity supply companies to get
involved but with a strict requirement to ensure that Nigerians over a
defined period of time dominate the management cadre and work force of
their organisations.

Implementing accurate billing/payments mechanism

The consumer must
be provided with the confidence that whatever billing process is
implemented is accurate and based on his consumption which will
encourage prompt payment. You are more likely to pay for a service
promptly when you are confident that you are paying the correct amount
for what you have used. The billing process must be transparent to the
consumer (available online) and should be able to withstand any manner
of scrutiny or audit.

Information Technology role

From the power
generation stage, to distribution and sale, accurate computerised meter
reading records need to be maintained, accurate computerised records of
wholesale purchase of power from the generating company by electricity
suppliers, consumer details and monitoring application systems need to
be implemented.

Online billing
systems and connectivity between systems used by competing electricity
supply companies must also be maintained so that a consumer can
seamlessly move over to another supplier based on their preference. All
the mentioned systems need to be in place to ensure that every stage in
the power supply chain is effective, accurate and auditable which will
provide all round confidence on all sides.

Competent IT
literate administrative staff and IT professionals will all be required
to enhance the application systems. For example, Centrica PLC, an
electricity supplier in the UK requires over 500 IT professionals to
support and maintain all the relevant electricity application systems
that automate every stage of the electricity supply process from
purchasing bulk electricity from the National Grid to supplying it to a
consumer, through to billing and receiving payments.

As Information Technology is the enabler of all sectors in our
society, not just the power sector, the better the IT infrastructure in
place and the more computer literate our society becomes, the more
efficient all other sectors can become, certainly in my view.