Invariably, Generation, Transmission, Bulk Electricity, Distribution and other organizations in the electricity value chain are paid specific amount in the model.
The name of the tariff model used in Nigeria is called MYTO for Multi Year Tariff Order. We are currently operating MYTO 2.1 for April 2015 to December, 2018, Amended.
A number of factors were taken into consideration to determine how much is to be paid by different classes of consumers; the consideration of which is beyond the scope of this write-up.
Suffice to state that the DISCOS (Electricity Distribution Companies) are just collecting agenies and are actually paying for electricity they are distributing to the public.
They don't produce any electricity.
The MYTO is divided into 5 sections, namely: Residential, Commercial, Industrial, Special & Street light. We shall focus on Residential.
Residential is divided into R1, R2,R3 & R4.
Charges on R1 are for rural areas.R2 for low income, high density population, R3 for middle class & R4 for high net worth individuals.
We shall concentrate on R2, where most of us belong.
We are all billed what is called ENERGY CHARGE. Fixed charge has been abolished.
All the 11 DISCOs do not charge the same rate. On R2 for year 2016 Energy charge for PHEDC-24.91, IBEDC-23.09 & IKEDC is N21.80 KW/Hr.
What is the meaning of N21.80 KW/Hr?
© Tunde Y. Salihu, 2016