It would be accurate to describe Nigeria’s power sector as both “broad” and “complex.” We speak of a sector with a regulator, an overseeing ministry, seven governing parastatals, at least 18 generating companies, 11 distribution companies and over 61% of the country’s population as consumers (based on the 2006 National Census figures). These stakeholder groups play essential roles in delivering a working and sustainable sector, but one factor remains a significant determinant to their success – communications.
Role of Communications in the Electricity Industry
The power sector by design has several moving parts; each delivers a specific mandate that varies from the rest. Each of these parts, however, must collaborate to complement one another’s efforts. Effective communication is needed to this end. Communications ensure consistent sector-wide coverage and information exchange within (and between) operating agencies, private investors (generating and distribution companies), donor agencies, the media and consumers. It streamlines processes across the multifaceted sector by keeping each sector player informed of critical events and developments.
Beyond the informative role communication plays in the sector, it also impacts investment. Good communications along key statistical outcomes afford the sector a transparent outlook, which is vital for investor confidence. Where this communication is absent, investors are unable to measure market feasibility or make investment decisions.
Appreciating the Communications Gap
The need for power sector communications may not have been fully understood six years ago when power sector processes were simply an affair between a government and its people. Under this arrangement, a one-directional communications approach may have sufficed. With privatization in 2013, the sector has now assumed a decentralized structure where each player is isolated and functions independently. The new structure of Nigeria’s power sector now demands more consistent cross-wise communication between stakeholders, but this is a reality that has not been fully embraced.
We still have some distribution companies whose only communication to their customers is their electricity bill. In cases where these bills are estimated, there is no clear justification for the figures stated. Moreover, no prior notification is given in the event of a technical downtime; nor is any follow-up communication established when the issue is resolved. This communication shortfall leaves electricity consumers guessing, with no feedback structures to share their opinions on the quality of service delivery they get, recall that this is a service they pay for! There is also poor communication on the procedures and delivery timelines for meter acquisition from the distribution companies beyond information accessible by word of mouth at the office.
On the governance side of things, it is usually a long-drawn battle obtaining correlating, up-to-date data from sector operators and regulatory authorities, which usually claim that they do not have the clearance to publish these figures. Where there is access, the process is usually burdensome, with the only available means of data extraction limited to manual review and input. Also, policies formulated are practically dumped in the public domain for whom-it-may-concern. There is little effort to conduct proper communications around them, simplify technical jargon, and deepen understanding of the general audience. How can these policies gain compliance if they are not clearly understood in the first place?
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Power Sector Stakeholders and their Communications Needs
Having established that the power sector is a multi-stakeholder environment that requires effective communication to function, it is needful to outline these communication needs clearly. Power sector MDAs need to be kept abreast of operational developments and compliance patterns across the sector. On their part, they should provide timely reports on laws, policies and regulations to the citizenry who need the information to guide their actions and make informed decisions. It is important to note that the credibility and acceptance of innovations and regulatory policies in the sector depend on the degree to which they are open to the public and understood.
Generation and distribution companies need to maintain constant communication with the relevant authorities regulating their processes. Such communications include frequent updates on the outcomes of their core functions, challenges they face and milestone achievements. These companies need communications to be perceived by their regulators as a working group. They also need to establish feedback systems to obtain reviews from their customers since they cannot address issues they do not know.
Electricity end-users need adequate sensitization on their rights and responsibilities as consumers as well as penalties for defaulters. They need to be educated on energy efficiency and conservation since it will significantly reduce electricity costs. Speaking of cost, consumers need a more simplified approach to tariffs and bills. They will be better incentivized to pay if bills are presented in simple and straightforward terms, and these consumers know that they are genuinely paying only for what they use.
Also, consumers have a right to know instituted policies, why these administrative decisions were taken, and their purposes.
Renewable energy as an alternative means of power generation is fast picking up steam. Still, as long as critical indicators in the space remain vague and mostly inaccessible, potential investors will continue to be hesitant. Donors and investors looking to make significant financial inducements to the sector to accelerate its processes need to see a certain level of transparency and accountability.
Leveraging Communications to Improve Sector Performance
The media, a key sector player, should be front and centre in all power sector processes. Power sector MDAs need to appreciate an independent media role in the further development of the sector and as a vital feedback resource and communications channel. However, the effectiveness of the media in delivering these roles depends on the degree of acceptance and involvement it enjoys from the powers that be. The media needs sufficient information from all sector subsets to function efficiently, and this goes beyond the occasional State of Play press briefings and interviews.
For starters, all sector players should adopt and sustain (with emphasis on the latter) a monthly newsletter that provides updates on critical developments. This newsletter should be impact-based, result-oriented and should describe the next steps and expected outcomes over specified timelines. However, it is not enough to disseminate a monthly newsletter. Keep the conversation going on social media and through frequent website updates.
Conclusion
With adequate sector-wide communications, the challenges associated with core sector processes become common knowledge, making it easier to put them in perspective and devise ideal strategies to mitigate them. Constant surveying across the various units of the sector, accompanied by effective feedback mechanisms, will be vital in addressing the sector’s many problems.
