PROBLEMS AND PROSPECT OF MARKETING OF ELECTRICITY SERVICES IN ENUGU
(A CASE STUDY OF NEPA HEADQUARTER ENUGU)
ABSTRACT
This research is on problems and prospect of marketing
electricity services in Enugu. It is made up of five chapters, each of
the chapters dealt with a particular aspect of the research work.
The
research work aimed at identifying the extent which marketing strategy
is applied for effective and efficient services to customers four
research question were set. The instruments used for data collection.
The was questionnaire containing fourteen questions relating to the
study. The sample size used was determined by the Nwana (1981)
osculation as such 131 persons we used. The persons were NEPA staff rich
are also users. Responses for the respondent were presented in as and
analyzed using simple percentage method only.
Finally, some
recommendations and suggestions in some areas for user research were
made. Among these recommendation are NEPA should adoption philosophy of
marketing concept in its daily activities.
2. Government should discourage the monopolistic syndrome practiced by NEPA
3. NEPA should create room for effective bill distribution and meter reading.
These
and more are the recommendations advanced to NEPA to assist them in the
marketing of the electricity services. Assistance or the other to see
this project a reality. They include Ezeji Emeka, Chinedu, Obiora
Chidiebere, Chinaza Chinaelo, and most importantly Akunne Obichukwu J
who computerized this project
TABLE OF CONTENTS
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Purpose of the study
1.4 Scope of the study
1.5 Research questions
1.6 Significance of the study
1.7 Definition of terms
CHAPTER TWO
2.0 Literature review
2.1 Invention of electricity in Nigeria
2.2 Electricity corporation of Nigeria
2.3 Niger dams authority
2.4 National electric power authority
2.5 Marketing mix for electricity services
2.6 Product
2.7 Pricing
2.8 Distribution
2.9 Communication/promotion
2.10 Summary of related literature reviewed
CHAPTER THREE
3.0 Research methodology
3.1 Research design
3.2 Area of the study
3.3 Population of the study
3.4 Sample and sampling procedure
3.5 Instrument for data collection
3.6 Validity of the instrument
3.7 Reliability of the instrument
3.8 Method of data analysis
3.9 Method of data collection
CHAPTER FOUR
4.0 Presentation and analysis of data
4.1 Summary of result
CHAPTER FIVE
5.0 Discussion of results
5.1 Discussion of results /finding
5.2 Conclusion
5.3 Implications of the result
5.4 Recommendations
5.5 Suggestions for further study
5.6 Limitations
Reference
Appendix
LIST OF TABLES
Tables
1.1 Distribution according to sex
1.2 Response on whether you live in house with NEPA installation
Responses on what you use electricity for
Responses on the services providely by NEPA Enugu
Responses on whether electricity bill is higher than you can cope with.
Response on whether electricity outages only last for short period
Response on whether you refers continuous current supply with high electricity bill
Response on whether electricity bill reaches you on time
Responses on whether NEPA officials disconnect your line without notice
Response on how you rank the computation of electricity
4.1 Response on the criteria for electrifying an area.
4.12 Response on the demand for electrifying in Enugu urban
4.13 Responses on electricity network
4.14 Response on the amount owed by customers by customers between 1996 – 2001
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
This research titled problems and prospects of marketing Electricity services in Enugu state using the NEPA Headquarters Enugu as a case study will slightly take our minds back to the parameter or yardstick for proper and genuine development of a nation especially Nigeria to be precise.
There is now an increasing realization of the need for effective electricity supply in the country as a result of rapid growth in all sectors of the economy and expansion in the use of electricity appliances.
National Electric Power Authority (NEPA) is a public enterprise established to provide electricity services to its numerous customers both in the urban and in the hinterland. As a public corporation, it is essentially a non- profit making organization, it is therefore expected to exploit its consumer (the users) In the name of profit maximization. However, it is expected to be financially self supporting, and therefore should be able to regard its customers as the central focus of its action.
According to Henson (1959), the country is anxious to develop economically has no has no alternative but to use public enterprise on a considerable scale, at the very lest in order to get things going.
Bearing the development of Nigerian economy in mind NEPA was established with the objective of supplying energy at the lowest possible cost, seeing to the effective distribution and rendering services to the consumer. Unfortunately, consumers whom the establishment was meant to serve have not derived the expected satisfaction from its services. Commenting on the extent of consumer frustration and disenchantment of NEPA services.
Akpo (1984) has this to say ”that NEPA has elbowed into inglorious state of being the most sickly and a ling parastatals that this country appears cursed with”. Although NEPA is cursed, the criticism stems either for ignorance of what it takes to supply electricity efficiently in a rapid developing environment or in some case, some knowledgeable section of the public here ave made up their minds never to see anything good effort of the NEPA .
Marketing has been variously defined one of the definitions is that which looked at marketing as “the performance of business activities that direct the flow of good and services from the producer to the consumer for use. In other words, all activities that are taken to faciliate the flow of goods and services come under marketing.
This definition fails to look at marketing as consumers needs identification and way of satisfying them.
Another notable definition is that which viewed marketing as the performance of business that directs the flow of god and services from producer to consumer or user in order to satisfy customer’s wants and accomplish the firms objective.
The definition places the customer at the for-front, it also places emphasis on achieving the firms goal. For the purpose of this study, therefore the definition given by mecarthy is more appropriate with regard to these problems and prospects of marketing electricity; marketing is defined as the application of marketing strategy. In the electricity industry with the view to satisfying the consumer efficiently. The service industries are generally behind the rest of other business in adoption of the marketing philosophy. Realising the importance of marketing in economic growth and electricity supply as a social amenities/symbol of industrialization and economic progress it is therefore important to integrate marketing philosophy in service industries.
1.2 STATEMENT OF PROBLEM
There is an increasing demand for energy consumption in Enugu arising from tremendous growth in national income, rapid and vigrous industrialization, exploding urbanization and to some extent over all affluence of people within and outside Enugu in particular and Enugu state in general; Nationa Electric power Authrity (NEPA) does not meet the energy demand of its numerous customers which is relected in constant power cuts and back outs. Ironically, consumers pay dearly for this in terms of high electricity bills in hospitals. Patient die. In the operating theatre, electrical appliance damages at various homes, and so many food item damage in cold stores or refrigerator as a result of irregular supply of power. Manufacturing industries roadside welders, musical and electronic dealers, cabinet makes and simialr professions suffer immeasurably muisance due to power failures. This is because they are not supplied with energy as often as they need to and sometimes stay idle for days until electricity is supplied. As an alternative they resort to purchasing of expensive power generating plants which could have been used for other profitable investments. This situation deserves attention, the solution to it is for the researcher to examine the problems and problems and prospects of making electricity services in Enugu. At this junction one might attempt to enumerate marketing NEPA, some of which include:-
1. Inefficient distribution network
2. Inadequate pricing system
3. Unreliable bill distribution
4. Dearth of experienced and competent marketing staff
5. Inadequate funding, lack of co-operation from consumers. Basically the researcher is interested in marketing problems of NEPA, Enugu. The implication is that other problem areas not connected with marketing will have to be de-emphasized.
1.3 PURPOSE OF THE STUDY
It is necessary that every work must have an objective and those that this study aims at determining are:
1. Whether or not electricity distribution network in Enugu is efficient
2. To ascertain the nature of bill distribution effects NEPA services.
3. To verify the validity or invalidity in the claim that death of experienced and competent marketing staff contribute to poor marketing of NEPA services.
4. To find out the extent on how inadequate pricing system affects marketing of NEPA services.
1.4 SCOPE OF THE STUDY
The scope of this study is limited to the population of the members of staff of NEPA, headquarters, Enugu which are also the users of electricity.
However, among this scope, some groups of staff were still eliminate, the Abakpa branch staff, the New Haven branch and the Emene branch including the Agbani road branch.
1.5 RESEARCH QUESTIONS
The following question have asked to guide the study:
1. To what extent does electricity distribution network in Enugu affect marketing of NEPA services?
2. To what extent does unreliable bill distribution affect NEPA services?
3. To what extent does death of experience and marketing staff contribute to poor marketing of NEPA services?
4. To what extent does inadequate pricing system affect marketing of NEPA services?
5.
1.6 SIGNIFICANCE OF THE STUDY
(i) The study is meant to identify the pattern of electricity distribution network in Enugu. An identified problem is already half-solved. If NEPA could identify the pattern of electricity distribution network, they it should think of imbibing maintenance habit and giving: adequate training to their technicians to improve in experience and competency.
(ii) It also helps NEPA to make a plan for bill distribution. The present is predicted effectively from the past and an ahead plan of action ie. The plan is made from the previous performance. If NEPA plan their pattern of administering the NEPA bill with reference to previous experience, a positive turn-up will be experienced.
(iii) This study also help NEPA to incorporate the philosophy of marketing concept in its daily activities or possibly have a marketing department in its branches to take care of all marketing activities in the organization.
(iv) It is used to correct the inadequate pricing system by recruiting of experienced and competent computing off officers that are capable of giving out adequate and reliable pricing system.
(v) This study also brings about the idea of appointing people with proven entrepreneurial integrity and skills as NEPA board members.
1.7 DEFINITION OF TERMS
“Words have the meaning we them for the purpose specify” for the purpose of this study, the following term used are defined for purpose of clarity.
SERVICES:
Services are any activity or benefit that one party can offer to another essentially intangible, and does not result. In the ownership of anything its production may or may not so tried to a physical product.
LOAD SHEDDING
This is the cutting –off supply of current on certain line when the demand for current is greater that supply.
GRID
The network of electricity supply wires connecting the power stations, for distributing electric current overlarge areas.
