Home > Library > ICEPT 2021:The Business Of Profitable Bulk Sale Of Electric Energy- A Case Study Of IPP Okpai, Delta State, Nigeria (Ref. CS000106)

ICEPT 2021:The Business Of Profitable Bulk Sale Of Electric Energy- A Case Study Of IPP Okpai, Delta State, Nigeria (Ref. CS000106)

ABSTRACT

Power generating companies involve in bulk sale of electric energy should at end of the investment, be at least able to get back their capital they invested in the business in addition to some profit made. The returns of the business is brought about by the energy tariff of the investor. However, care should be taken in fixing tariff for the bulk sale of energy to keep customers, make profit and remain in business. This paper have presented and compared two ways of fixing two – part tariff for bulk sale of energy for power generation companies to adopt and use depending on what and how they want to market their product (electric power) to consumers. These are the ascending and descending tariff plans. For the systems used as a case study, the result showed that the investor should peg his tariff at ₦239.08/kWh and ₦0.072/kWh for ascending and ₦257.54/kWh and ₦0.072/kWh for the descending plans for the start for the variable and fixed tariff respectively should be adopted to make a net profit of 5% if the investment capital. These figures will be increasing and decreasing with time for ascending and descending methods respectively.

Keywords: Fixing, Tariff, Methods Comparison, Electricity

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The Business Of Profitable Bulk Sale Of Electric Energy

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