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GEOMETRIC POWER LIMITED

Presented by

Professor Bart O. Nnaji

Chairman/CEO

at

National Conference on Electricity Consumers in Nigeria

15 MARCH 2007

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Consumer Rights

Individual Consumer Rights1. The right to safety.

2. The right to basic needs.

3. The right to be informed.

4. The right to choose.

5. The right to be heard.

6. The right to redress.

7. The right to consumer education

8. The right to a healthy environment

Courtesy: Presentation by Dr. Grace Eyoma, Hon. Commissioner, NERC

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Consumer Rights for Electricity Consumers

Right to Electric Service Right to Accurate Electric Watthour Meter;Determination of Average Error

Right to Refund of Overbillings Right to Properly Installed Meter Right to Prompt Investigation of Complaints

Right to Information; Scheduled PowerInterruptions

Right to Transparent Billing

Courtesy: Presentation by Dr. Grace Eyoma, Hon. Commissioner of NERC

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Consumer Rights for Electricity Consumers

Right to Due Process Prior toDisconnection of Electric Service

Right to a Notice Prior to Disconnection

Right to Reconnection of Electric Service

Right to file Complaints before NERC

Courtesy: Presentation by Dr. Grace Eyoma, Hon. Commissioner of NERC

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Summary consumer rights/needs

Reliable electricity (near 100% availability)

Reasonable/affordable price

Good quality power

Access to electricity

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Overall goals of power regulator anddistributor

Regulator is interested in ensuring 100%availability of quality power at reasonable cost to

consumers

A Distribution company is interested in providingnear 100% quality power availability at a cost

that is cost reflective with reasonable return.

Confluence of interests: reliable quality power at

affordable/reasonable return tariff.

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Regulatory requirements

Satisfy new customer connection requests and provide

electricity service to all customers in an equal and non-discriminatory fashion.

Adhere to European and World Bank standards for excellencein management and transparency in governance.

Acquire major equipment and service contracts through anopen competitive process

Meet, within a specified period, excellence in reliability ofservice as defined by an annual SAIFI index of X or less and a

SAIDI of Y minutes or less per duration at the low-voltageconsumer level.

Double, within a period of Z years, the number of residentialand small and medium-sized enterprises with electricity

service.

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Regulatory requirements

Comply with Nigerian and World Bankenvironmental standards and set a target to

comply with the ISO (International

Standards Organization) 14000 family ofrules for environment management andauditing.

Establish an excellent training program

Set tariff benchmark that balances cost

recovery and customer satisfaction

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REGULATOR: tariff setting

Provide a model for tariff setting Use model Plant: 150 250MW

Capture all CapEx & OpEx costs

Equipment Cost/MW for plant capacity Plant Efficiency

Operational Costs

O & M

LTSA

Fuel - - - pass through cost

Other costs

Generate tariff charge for electricity delivered fordistribution

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REGULATOR: tariff setting

Feed generation tariff to a distribution model

Allow for reasonable operation management

costReasonable Staffing

Training

Investment in network upgradeMetering - - - pass through and amortized

Incentive for improving efficiency with new technology

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REGULATORY/INVESTORS& CONSUMERS

OBJECTIVE

KEEP THE LIGHTS ON!!

Culled from speeches by Dr. Ransome Owan, Chairman/CEO of NERC

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Thank you!