Evaluation of economic consequences of electricity transmission and distribution losses in Nigeria

Abstract

The aim of the study is to identify the causes, estimate economic consequences and recommend solutions to the electricity transmission and distribution losses emanating from Electricity Distribution Companies (DisCos) in Nigeria. Secondary data from Nigerian Electricity Regulatory Commission (NERC) and database of International Centre for Investigative Reporting (ICIR) were analyzed using simple percentages based on the cumulative average transmission and distribution losses of the eleven DisCos in Nigeria. In addition, survey of related peer reviewed empirical works served as supplementary data sources after deployment of all the needed energy conversions for conformity with various energy data units available. The study found the rate of electricity transmission and distribution losses to be 53.83%, or about 1,973.318MWelectricity in Nigeria. About 3665.83 Mega Watt (MW) was the estimated generated energy that is sent out to National grid by the generating companies (GenCos) in Nigeria for the DisCos to distribute to all the tariff classes of consumers (Residential, Commercial, Industrial, Special and Street Light) relative to band hours. The results translate economic loss in billions of naira from the existing DisCos, with YolaDisCo having the highest industrial monetary transmission and distribution losses amounting to Fifty billion, forty-two million, eighty-three thousand, six hundred and seventy (N50, 042,083,670) Naira based on maximum of 16 hours electricity supply at N66.04 for the year 2020. Identified causes of the electricity losses were overloading on transformers, vandalization of transmission equipment, poor maintenance regime which is recommended to be reversed to give positive; economic, health, and social benefits.