Name of the Student: Lalatendu Samantaray Enrolment Number: IFHE2301RL1150

SEM 1 / Integrated Project BE/MOB/QM/ITM/FAF

Assessment of Potential Risks under new business environment and its

mitigation through Performance Improvement in High Value Customer management

Synopsis

1. The Project

On March 17, 2023, following a long review and debate, Nigeria’s president, Mohammed Buhari has signed a
constitutional amendment allowing states in the country to generate, transmit, and distribute electricity.

This change in the rule has created an external business environment threat for the existing Power Distribution
companies which have been established after the power sector privatisation initiate conducted in November
2013. Eko Electricity Distribution Company (EKEDC) is one among the 11 distribution companies in Nigeria
started apprehending threat of losing its high value customers to newly conceived state Utilities.

At this stage, EKEDC assigns a consultancy assignment to assess the potential risks and recommend initiatives
to strengthen its business among High Value Customers. Also, the assignment covers the possibility of process
improvement through implementation of Organizational restructuring and deployment of IT tools to curb losses
in the business of High value customers.

Being a consultant to EKEDC, I have the opportunity to advise the client.

2. Statement of the Business Problem (SoBP)

EKEDP being the second most efficient power utility in Nigeria, still feels the challenges of not meeting the
regulatory targets due to inefficiencies within various internal departments. The overall ATC&C losses still
hovering around 25% in last 2 years.

Around 7,500 (1.2% of total customer base) number of High Value customers contribute 45% of total revenue
of EKEDP and the remaining 98.8% customers (household customers) contribute 55% of the revenue. This wide
distribution of customer class raises concern, as a small negligence in the management of high value customers
brings huge loss to the business. As a matter of fact, the business has never achieved its Billing Efficiencies as
set by the Regulator.

Unreliable power supply leading to customer dissatisfaction has always been a point of distraction in the
prioritisation of performance improvement initiatives. Hence, EKEDC envisaged this assignment to improve the
overall efficiency of the business to mitigate the business threat.

Metering and Vigilance unit under Commercial department are the core stakeholder in this assignment.

3. Project Objective
1. Implement strategies, so that High Value Customer may patronise to EKEDP
2. Quantitative Analysis towards targeting Revenue losses.
3. Establish effective Organizational Structure towards effective management of High Value customers
and reduce commercial losses.
4. Implement technology towards monitoring of Meter recertification process.
5. Improve profitability through improved power supply.
4. Methodology

This being a multi-dimensional assignment covers all the five course areas of our MBA program. Following are
the brief description of methodology to be followed during the assignment.

 Business Environments
o Meetings with Chief Commercial Officer and other officers concerned to brainstorm issues.
o Conduct SWOT Analysis
o Device initiative to counter business threats
 Quantitative Methods
o Gathering Billing database from Client
o Trend analysis of customers base on last 12 months billing data.
 Management and Organizational Behaviour
o Review of Industry best practice.
o Reviewing Job Roles
o Design better Key Performance Indicators
o Designing suitable Organisational Structure
 IT for Managers
o Process improvement through design and implementation of specific IT tools to bring more
accountability among engineers handling high value customers’ recertification.
 Foundation of Accounting and Finance
o Performance review of clusters with low supply due to technical constraints
o Development of network strengthening schemes to improve electricity supply.
o Cost benefit Analysis of proposed projects

Formats to be used

 MS Excel
 MS Word
 MS PowerPoint

Key milestones

1) Business Environment - SWOT analysis on change in the external Business Environment and its
recommendations – 30th July 2023
2) Quantitative Analysis – Excel based Analysis of High Value customers’ billing data over last 12
months – by 30th July 2023
3) MOB – Recommendation of new Organizational Structure - 30th July 2023
4) ITM – Report on “Project management support in the process of development of IT Tool – 30th July
2023
5) FAF – Report on ‘Profitability of Analysis of the proposed Network strengthening – 30- July 2223.