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The Nigerian Electricity Supply Industry

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5.1 Conclusion
Following the data analysis performed in the fourth chapter. The following are the findings of this study:
I. The unit cost of energy provision in Nigeria’s power sector varies by region. The region covered by the Yola and Ikeja distribution company had the highest and lowest marginal costs of providing one unit of electricity – respectively - over the period of three years from 2015 – 2017. Also, the cost of distributing one unit of electricity makes up the highest percentage of the unit cost of energy provision, which can be attributed to the large metering gap currently in existence within the sector.

II. The revenue generated from providing a unit of electricity to the average end consumer varies by region. The …show more content…

This will increase the efficiency of revenue collection while also cutting down the costs incurred from distribution activities. DisCos should also be made to purchase locally manufactured meters from the instead of importing “so-called” smart meters and incurring higher costs.

II. Having established that prices are charged on a region-to-region basis. It is recommended that tariffs should be made 100% cost reflective with no provision for sculpting given DisCos inability to raise fund from commercial banks to finance under-recoveries built into the tariffs. The level of tariff sculpting (if any), should be determined by each individual Disco, however, this will be dependent on DisCos signing up to activating their contracts, making full payment and bearing stiff sanctions in case of default. Also, reviewing meter pricing (in the tariff structure) that is still benchmarked to a foreign currency exchange rate of N160. This is one of the reasons why there is a shortage of meters in the market. Furthermore, the DisCos need to open up their financial records and be more accountable to enable the GenCos and the TCN to collect the monies due to them by law.

III. Prices set using the MYTO methodology are only cost-reflective when their underlying assumptions are met, therefore:
a.

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