Case studies in electric power utility management

This series from Der Spiegel International is utterly fascinating. 

German Energy Agency Chief: 'We'll Need Conventional Power Plants until 2050'

SPIEGEL ONLINE - November 15, 2012 Stephan Kohler, the head of the German Energy Agency, says the country must act smarter and more realistically in its transition to renewable energy. The "feel-good" subsidies for locally produced wind and solar power have had unintended consequences, he says, and the environmental movement is often part of the problem. more... [ Forum ]

Quagmire in the Sahara: Desertec's Promise of Solar Power for Europe Fades

SPIEGEL ONLINE - November 13, 2012 As recently as three years ago, many thought that it was only a matter of time before solar thermal plants in North Africa supplied a significant portion of Europe's energy needs. But Desertec has hit a road block. Industrial backers are jumping ship, political will is tepid and a key pilot project has suddenly stalled. By Joel Stonington more... [ Forum ]

The High Price of Clean Energy: Tax Breaks and Subsidies for Industry Divide Germans

SPIEGEL ONLINE - October 26, 2012 Major industry is being spared of the costs relating to Germany's expensive shift from nuclear to green energies. The burden is being placed on small and medium-sized business as well as German consumers, who pay the second highest price for electricity in Europe. Resentment is starting to grow. By Jörg Schindler and Gerald Traufetter more...

Rising Energy Prices: Germans Grow Wary of Switch to Renewables

SPIEGEL ONLINE - October 15, 2012 Germany's switch to renewable energies is driving up electricity bills across the country, with a green technology surcharge set to rise by nearly 50 percent next year. With frustration over the high price tag, it promises to become a key issue in next year's election campaign. more...

 

Merkel's Blackout: German Energy Plan Plagued by Lack of Progress

SPIEGEL ONLINE - October 10, 2012 Germany plans to abandon nuclear power by 2022, but its government hasn't been doing enough to ensure that the project succeeds. Needed infrastructure and technology is lacking, and coordination is a mess. Meanwhile, weary consumers are paying more for electricity, and the supply is in jeopardy. By SPIEGEL Staff more... [ Forum ]

Flexible Fossils: A New Role for Coal in German Energy Revolution

SPIEGEL ONLINE - September 07, 2012 One of the biggest challenges of Germany's ambitious energy revolution is the fact that renewables such as wind and solar are subject to large fluctuations in output. Coal has long been considered their dirty alternative, but a new generation of power plants may herald a glowing future for the fossil fuel. By Stefan Schultz more... [ Forum ]

Find more here: Spiegel.de/.../Energy

Can reduced government spending enhance our economy?

A few approaches to answering this good question:

Anti-corruption - At this time, we need to reduce the financial reward for political officeholders to discourage "do-or-die" politics and perhaps encourage eggheads like me ;)

Economic growth - Produce more (consume less?) is the current imperative.  To produce more, we need to get infrastructure up, and rent-seeking down.  We must get more small-chunks of resources to productive hands, and disperse the glut of resources at the center (mostly from oil receipts).  This is understood but implementation is slooow.

Electricity - If we would get electric power provision right, we would spend less next year on diesel, generators, transport, communications, health and so on.  Ok, this has little to do with reduced government spending, but it's so important for our economic growth that I had to sneak it in.

Inflated budgets - Study the details of the budgets proposed for various agencies, ministries, etc.  Clearly most are overbudgeting: multiple requests for the same items, wage bills that can't possibly be explained by multiplying the small take-home pay by the number of staff, ... and other inconsistencies.  Why?  And what is the way forward?  Can we encourage these units to review their budgets, come up with new numbers, and maybe reward the rank-and-file staff with extra pay from the savings?  We could create a dropbox for such reviews.

Nine zeros is a billion. I can hear you say "What the hell is the National Judicial Council"

Proven unproductive sectors - a lot of the civil service and political class is unproductive, in the sense that their work has little positive effect on society.  Here are some of the ways this is so:

- Some of the staff doesn't exist i.e. ghost workers

- Some of the staff shouldn't exist e.g. We pay a stupendous pension to the families, multiple widows, and children of former military rulers and other presidents, and governors.  Why? Should they not also work?

- Some of the staff is actually anti-productive e.g. creating redtape and harassing citizens so as to collect bribes.  We ought to put such people in jail.  Instead we keep paying them to further destroy the lives of Nigerians.  For example, multinational wants to set up shop in Nigeria, you refuse unless you (not your people) can get a cut.  God will punish you.  You throw away qualified resumes sent to your boss so that you can sell the open position or give it to your cousin. 

- Where work is done, some of it is unproductive e.g. a workday that consists mostly of the effort to groom oneself, take stressful transportation methods, then settle in to gossip and or power-seeking at the office before heading back home.  It does not add anything to the world, except pollution maybe.  A legislator that can't or won't consider policy that would move the country forward but would travel all over for training (read sightseeing), seat-warming at high-tables, oversight functions like inspection of construction projects.

- A lot of the staff is good-for-nothing on the job, since the process of getting the job doesn't emphasize competence e.g. Last-minute money-sharing will get you to the National Assembly.  Being somebody's cousin will make you their paid assistant.  

- Some of the staff is redundant.  Because they do not have the necessary skills, additional skilled staff has been hired to get the job done.  There must be a stylish and humane and supportive way of either retraining them or relieving them of their duties maybe with a severance package and a business loan or school loan.

Sharing the pain -  Before the protests against subsidy removal this January, the president announced a move to cut salaries in government.  If we have given up our fuel subsidies and are making do with less, where is the matching contribution from the ruling class? How is it that they carry on wasting, carry on being overpaid, carry on receiving multiple "official" vehicles, while we are sacrificing for the future? 

Summary: Some belt-tightening may have occurred in the Nigerian government, but with a 70-30 allocation between recurrent and investment spending, the situation is far from satisfactory.  Government spending needs to be further reduced in favour of more productive spending. 

Read more:
- Budget Proposals at the Budget Office, Federal Ministry of Finance, Nigeria
- Nigeria needs to reduce rent-seeking (search result includes Udah and Obguagwu 2011, Coolidge and Ackerman World bank)
- Jonathan cuts salaries of government officials by 25% (reported January 7 2012).  He said in his speech: For the year 2012, the basic salaries of all political office holders in the Executive arm of government will be reduced by 25%. Government is also currently reviewing the number of committees, commissions and parastatals with overlapping responsibilities. The Report on this will be submitted shortly and the recommendations will be promptly implemented. In the meantime, all Ministries, Departments and Agencies must reduce their overhead expenses.

NES 18: Deregulation, Cost of Governance, and Nigeria's Economic Prospects

The NESG is holding its 18th annual summit in Abuja (December 3-5, 2012)

Day One Intro:
President Goodluck Jonathan will lead the presidential policy dialogue at the opening session of the 18th summit and continue the frank and open interaction...
H.E, Shaukat Aziz, former Prime Minister of Pakistan will share the Pakistan experience on deregulation in a keynote address during the presidential policy dialogue.

Day One Info:

I'm not there, but here are highlights - Tony Elumelu's tweets, and a burning question - will Nigeria actually make it to the top 20 of world economies by 2020, or will we get stuck at say #27 ?

Coming Up:

• Dr Ngozi Okonjo-Iweala, Coordinating Minister of the Economy will lead the Economic Management team in a dialogue on 'Economic Transformation through Deregulation' 
• Governor Sanusi of Nigeria's Central Bank will lead the session with Financial Regulators on 'Achieving financial inclusion for Nigeria'. 
• A special plenary on the PIB and the future of Nigeria's oil industry will be led by top public and private sector stakeholders. 
• A conversation with young Nigerians on the state of the nation will take place during the Emerging leaders Forum** 
• The newly introduced Civil Societies Forum will seek to create a framework for collaborative advocacy on critical policy issues among civil society organizations. 
• A Legislators' Forum underscores our determination to engage our elected representatives on their role in the attainment of key national developmental objectives.

** The Emerging Leaders Forum will have Audu Maikori, Nmachi Jidenma, Toyosi Akerele, and others.
I was on the emerging leaders panel at NES#16 - all I can say is hope it's counted.