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ELECTRIC POWER OUTAGE COST TO ELECTRICITY DISTRIBUTION COMPANIES IN NIGERIA.
Abstract: Over the years, customers and distribution companies have suffered psychological and social-economic losses due to power outages. These have led to a reduction in living standards, an increase in production cost, and stagnated national economic growth. However, little study exists to show the impact of power outages on the distribution companies. Hence in this work, the financial implication in terms of potential revenue loss to the distribution companies as a result of outages on their distribution feeders was analyzed. To achieve this, an important energy index such as Energy Not served (ENS) was used to estimate the consequent lost revenue based on the prevailing electricity tariff. From the analyzed outage data (from 2015 to 2018 for Ehor, Ubiaja, and Uzebba 33kV feeders of Irrua Transmission Station), it was discovered that the feeders experienced 4520 interruptions during the time under review. As a result, a total energy of 164,398,401.67kWh was not served which amounted to a loss of 4,415,428,094.48 Naira to the distribution company. Therefore, it was suggested that vandalizers of power equipment should be sanctioned to avoid the outages that are caused by such act. Also, the distribution companies should always carry out routine preventive maintenance and capacity increment on their network. The off-peak electricity tariff should be specially reduced to encourage people to use electricity in the nights to remove the interruptions caused by system overloading during peak load times of the day. Contrary to some public opinions, it is hoped that this study will make the populace to appreciate the fact that it is never in the best interest of distributiIJSER on companies to
allow/cause power outages. Also, it will serve as a guide for policy makers in the regulation of the power industry.
Keywords: Energy not served, Outage Cost, Power Outages, Electricity Cost, Nigeria Power Sector, NERC, NEMSA.