Factors Effecting Electricity Pricing in Nigeria

Research areas: Year: 2013
Type of Publication: Article Keywords: Electricity Pricing, Cost of Electricity
Authors:
  • and Okpeki Ufuoma Kazeen, P. N. Onwuachi-Iheagwara
Journal: Journal of Engineering and Energy Research Volume: 3
Number: 1 Pages: 33-37
Month: June
Abstract:
The paper seeks to model electricity price based on publicly available information. With the model the relationship between the cost of electricity generation and the price for consumption; based on the supply-demand equilibrium was studied and forecast made. The input into this system includes variables from the market forces dynamics, regulatory and legislative factors and changes, the cost of using depilating equipment vs. cost of new equipment and machinery as well as the increasing fuel costs and deprecation. With these analysis the trend in electricity pricing, strategies and the role they can play in forcing electricity price upward and the attendant rate increases by utilities. The contributions by confounding and latent variables into the system were acknowledged. Some of these factors are politically (Power supply in Nigeria has become politicized over the years) and the people’s rating of administration is influenced by it. For this study such confounding and latent variables are treated as “noise” and ignored.