1 / 32

Performance Monitoring & Benchmarking in an Electricity Sector in Transition

Performance Monitoring & Benchmarking in an Electricity Sector in Transition. Being presentation made by Engr. (Dr.) J. O. Makoju – MD/CE PHCN Plc at the World Bank 2006 Energy Week in Washington DC 6th – 10th March, 2006. About Nigeria. Located in West Africa

ace
Download Presentation

Performance Monitoring & Benchmarking in an Electricity Sector in Transition

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Performance Monitoring & Benchmarking in an Electricity Sector in Transition Being presentation made by Engr. (Dr.) J. O. Makoju – MD/CE PHCN Plc at the World Bank 2006 Energy Week in Washington DC 6th – 10th March, 2006

  2. About Nigeria • Located in West Africa • Total area of ~ 923,770 sq km (about the same territory as France & Germany combined). • Climate varies from equatorial (in the south), tropical (in the central area) and arid (up north). • Population of over 130 million people (multiethnic, multicultural, secular society) with an average pop. growth rate of ~3% p.a.

  3. Sector Reform (on-going) • Perhaps the single most profound step taken under the reform process has been the internal unbundling & decentralization of PHCN’s operations • NBUs have been operating as semi autonomous units over the past 2yrs (while they await full corporatization in April 2006). • With increased autonomy came the need for greater accountability; performance monitoring & benchmarking.

  4. PHCN’s Benchmarking & Performance Monitoring Initiatives

  5. Target Setting • Based on realistic expectations rather than international benchmarks • Challenges in the local environment taken into account (Weak/ fragile electricity infrastructure; Network limitations etc) • Customer Service Charter also taken into consideration

  6. Target Setting………………………cont’d • A consultative approach is adopted in target setting (Targets are agreed with the NBUs not “handed down”). • Adjustments are made where necessary based on the peculiar situation of an NBU. • Targets are monitored by the Planning & Strategy Dept./ Market Operator • Ranking circulated at the end of each month

  7. Some KPIs for the Generation NBUs • Generation Unit Cost - Total Expenditure (Naira) TotalEnergyDelivered(KWH) • Generation Utilization Index -Actual Generation (MW) Available Capacity (MW) • Capacity Utilization Index - AvailableCapacity(MW) Installed Capacity (MW) • Fuel Cost per Unit Gen.-Total Cost of Fuel (Naira) Total EnergyGenerated (MWH)

  8. KPIs for the Generation NBUs …………cont’d • Staff Cost Index - Total Expenditure (Naira) Number ofEmployees • Staff Productivity Index - Total Energy Delivered (MWH) Number ofEmployees • Breakdown Mtce. Index-No of Breakdown defects rectified No of Breakdown defects reported • Plant Reliability Index -TimeofReporting Period Total DowntimeofunavailableUnits

  9. Some Performance Monitoring Charts Target Reliability Index Chart (Jan – Dec 2005) Maintenance Index Chart (Jan – Dec 2005)

  10. Some KPIs for Transmission • Grid Loss Ratio - Energy dispatched to distribution Energy Received from Generation • Transformer Cap. Utilization -Transformer Max. Load Installed Capacity • Transmission Cost Index - Total Monthly Expenditure Energy Received from Generation • Staff Productivity -Energy Received from Generation Ave. no. of employees

  11. Some KPIs for Transmission…………………..cont’d • Dispatch Unit Cost - Total OperationExpenditure (Naira) Energy Delivered to Distribution • Transmission Losses - Energy sent out from PS (MW) – Energy delivered Energy sent out from P.S (MW)

  12. Some KPIs for the Distribution NBUs • Fault Clearance Index - Total faults Cleared Total faults reported • Collection Efficiency -Total Monthly Cash Collection (Naira) Monthly Billing Revenue (Naira) • Capacity Utilization Index - Maximum Monthly Load (MW) Installed Capacity (MW) • Metering Ratio -Total no. of Customers metered Total number of customers • Customer Response Time -Time from customer enquiries/complaints To time of resolution

  13. Impact of Performance Monitoring / Benchmarking • Has triggered various innovations by the NBUs • Helped to build up managerial capacity • More efficient resource allocation • NBUs have a foretaste of “full blown” reform (as the now “compete” against each other) • Now more willing to embrace new ideas eg: innovations under CREST

  14. More About the CREST Programme • Commercial Reorientation for Electricity Sector Tool Kit (CREST) • Designed to address some of the downstream issues of the Industry (metering, billing, revenue collection, customer care etc). • Commenced in 2003

  15. Distribution Efficiency Enhancement Initiatives under CREST • High Voltage Distribution System (HVDS) • High Voltage Panel Metering • Customer Care Centres • Rapid Response Vehicle • Spot Billing • Scratch Card system • Split pre prepayment meters. • Performance rewarding initiative

  16. High Voltage Distribution System in Other Distribution Business Units (DBUs) (i) HVDS – Substation Ibadan DBU (ii) HVDS – Substation Eko DBU (iii) HVDS – Substation Ikeja DBU (iv) HVDS – Substation Kano DBU (v) HVDS – LV Distribution using insulated cables + LV Distribution Board Kano DBU

  17. HVDS – SUCCESS STORYACROSS THE BUSINESS UNITS

  18. High Voltage Metering In-door HT Panel Meter Out Door HT Panel Meter

  19. HT Panel Metering Success storymonthly revenue improvement across the business units

  20. Split Pre-Payment Meters – Mambolo Abuja

  21. Scratch Card Initiative Telephone vending possible Internet vending possible More care of customer is not required 20 Digit Codes

  22. Pre-Payment Meters Success Story at Mambolo Abuja • No more unbalanced load due to disconnection and re-connection of customer • No more bills and debt accumulation • Commercial Losses reduced • Improved relationship with customers (no bad reading, no disconnection and re-connection fees) • Customer manages his consumption • Up-front payment

  23. TYPICAL CASH COLLECTION PERFORMANCE REPORT ABUJA ZONE: JAN 2003 TO DECEMBER 2005

  24. Rapid Response Vehicle - Abuja

  25. Customer Care Center Garki - Abuja

  26. Naira Yield 2005: N3.23/Kwh Naira Yield 2001: N1.87/Kwh

  27. Consolidating on the Gains • Sector reform leading to privatisation will ensure that the gains made are improved upon (Privatization to commence in 2006—2GenCos and 2 DisCos) • PPP initiatives being introduced with the corporatization of PHCN in April, 2006 • The outsourcing programme will run parallel to the privatization programme and is designed to add value to the DisCos and significantly improve their financial positions

  28. Conclusion • The Nigerian power sector is gradually recovering from two decades of neglect (the pace may be slow but a consistent upward trend has clearly emerged) • Target Setting, Performance Monitoring & Benchmarking have been key tools in this transformation process • Finally, we must commend the WB for the support/ assistance of the on-going power sector reform programme through projects such as the NTDP; CREST and more recently the NEDP.

  29. Thank you for your attention

More Related