MYTO-II - Nigeria Electricity Privatisation (PHCN)

Report
Transaction and Industry
Review Conference
Dr. Sam Amadi
Chairman, Nigerian Electricity
Regulatory Commission
28th November 2011
Table of Contents
• Tariff Principles
• MYTO Methodology
• MYTO II Model Structure
2
Tariff Principles
• MYTO sets tariffs for the three electricity sectors based
on certain principles and assumptions, namely:
– Cost recovery/financial viability – licensees recover efficient
costs, including a reasonable return on capital
– Signals for investment – tariffs should encourage an efficient
level and nature of investment (e.g., location)
– Certainty and stability of the tariff framework enables
private sector investment
– Efficient use of the network – tariffs should reflect the
marginal costs that users impose on the system, influence
efficient use and reduce cross-subsidies
– Allocation of risk – the tariff framework should allocate risks
efficiently to those best placed to manage them
3
Tariff Principles
– Simplicity and cost-effectiveness – the framework
should be simple and not costly to implement
– Incentives for improving performance – it should
incentivise cost reduction and quality of service
– Transparency/fairness – it should be transparent and
ensure open access to monopoly networks
– Flexibility/robustness – it should cater to unforeseen
changes in the market
– Social and political objectives – it should provide for
the achievement of social goals such as universal
access and demand-side management
4
MYTO MethodologyFrom General Assumptions to Disco Retail Tariff
Inputs to the tariff – forecasts of load, capacity, fuel costs, investment,
levels of losses, customer numbers, O & M costs and other economic and
technical data
Generation costs,
life cycle cost
methodology
Transmission tariff
Building Blocks
Distribution & retail
Distribution
tariff & retail
tariffBlocks
Building
Building Blocks
Final retail tariff
To consumers
5
MYTO II Model Structure
INPUT
Control
Data / Assumptions
Generation, Transmission & Distribution
Load Forecast
Load Calculations
COMPUTATION
Generation
New Entrant Model
Investor
Module
(IPP)
Generation
Wholesale Prices
Regulatory fee
OUTPUT
Transmission
Costs
Distribution
Distribution–11
Distribution–11
Distribution–11
Costs
(11)
Costs
Costs
Costs
Transmission
Depreciation
Distribution
Distribution–11
Distribution–11
Distribution–11
Depreciation
Costs
Costs
Costs (11)
Transmission
Tariffs
Distribution
Distribution–11
Distribution–11
Distribution–11
Tariffs
(11)
Costs
Costs
Costs
Regulatory fee
BT Charges
Tariff Summary
(End-user Tariff)
Regulatory fee
Investor
Module
(DISCO)
Asset Valuations
Company
Fair Values (N’000)
Abuja Disco
55,166,801,609.01
Benin Disco
44,392,977,373.20
Eko Disco
55,742,985,576.66*
Enugu Disco
44,724,247,826.38
Ibadan Disco
58,343,210,274.70
Ikeja Disco
73,889,325,642.56*
Jos Disco
32,111,457,674.59
Kaduna Disco
51,133,316,916.91*
Kano Disco
56,319,019,893.70*
Port-Harcourt Disco
41,361,539,400.22
Yola Disco
19,692,038,556.13
Revenue Requirements
Regulated costs (N '000)
Total Generation
Total Transmission
Total Distribution
Total
Regulated Tariff
Average tariff (NGN/MWh) (PreSubsidy)
2012
2013
326,629,494 461,297,088
2014
2015
650,085,498
788,237,416
62,521,172
78,482,958
96,057,671
233,240,333 264,282,475
296,040,852
329,767,831
46,405,795
606,275,622 788,100,735 1,024,609,308 1,214,062,918
24,073
22,717
23,172
23,917
8
Tariff Schedule
(Post-Subsidy)
2011
Tariff Code
Residential R1
Residential R2
Residential R3
Residential R4
Commercial C1
Commercial C2
Commercial C3
Industrial D1
Industrial D2
Industrial D3
Special 1
Special 2
Special 3
Street Lightng S1
Fixed
N/month
50.00
300.00
12,509.00
78,178.00
272.00
11,340.00
70,874.00
201.00
69,733.00
70,874.00
240.00
31,250.00
31,250.00
451.00
2012
Fixed
N/month
360.00
18,763.50
117,267.00
326.40
17,010.00
106,311.00
241.20
104,599.50
106,311.00
288.00
37,500.00
37,500.00
541.20
2011
% Increase
20%
50%
50%
20%
50%
50%
20%
50%
50%
20%
20%
20%
20%
2012
Energy
Energy
N/Kwh
N/Kwh % Increase
2.20
2.64
20%
10.00
12.00
20%
15.60
23.40
50%
15.60
23.40
50%
14.40
15.03
4%
14.50
21.75
50%
14.50
21.75
50%
11.70
17.55
50%
15.20
22.80
50%
15.20
22.80
50%
11.20
16.80
50%
11.20
16.80
50%
11.20
16.80
50%
8.60
12.90
50%
9
THANK YOU
Contact us at:
Adamawa Plaza, Plot 1099 First Avenue,
Off Shehu Shagari Way,
Central Business District,
Abuja
Website: www.nercng.org
E-mail: [email protected]
10

similar documents