Electricity price rises as power hits 5,000 mw in 2016

Nigerians should be ready to pay more electricity bills in 2016 when the national grid is expected to hit a steady 5,000 megawatts (mw).

The 10-year Multi-Year Tariff Order (MYTO) 2.2 submitted by the 11 electricity Distribution companies (Discos) to the Nigerian Electricity Regulatory Commission (NERC) indicates a significant increase in the Energy Charge (EC) component of consumers’ bill with a significant reduction in the Fixed Charge (FC) section of most Discos.

It is also consulting customers and members of the public in Abuja today before approving the plans submitted by the Discos.

Available statistics obtained from the MYTO 2.2 submissions of the four Discos of Abuja, Kano, Eko and Ikeja, as obtained from the NERC, showed that about 5,465mw of power may be available for distribution from January 2016. This could translate to having a minimum of 18 hours daily supply of electricity across major cities in the nation if transmission (evacuation) loss remains at a minimal of 8.05 per cent.

With this in anticipation, Daily Trust reports how this capacity may be shared across the Discos, what customers should expect as payment relative to the Discos’ customer size and their Capital Expenditure (CAPEX) requirements.

Grid allocation and network requirements

Abuja Disco gets 11 per cent of the national grid, translating to 3,786 gigawatts hour {Gwh} (over 400mw). The figure is expected to rise to 4,692gwh (over 500mw) in 2016. The Kano Disco, on its part, receives 8 per cent, which is 2,551Gwh (over 300mw). It is expected to rise to 3,264Gwh (about 400mw) in 2016.

For Eko Disco, it is 11 per cent of the grid capacity, which translates to 601mw in 2016, a rise from the 477mw it is getting in 2015. This is expected to rise to 792mw in 2017 when generation capacity would have reached 7,199mw. Ikeja Disco gets 15 per cent of power grid, translating to 6,120Gwh (about 700mw). It is expected to rise to 8,174Gwh (about 900mw).

The Discos, during the privatization exercise, were mandated to reduce losses in their networks to the barest minimum. Calculated as Aggregate Technical, Commercial and Collection