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

Daily Trust - - BUSINESS - By Si­mon Echewo­fun Sun­day

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

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