Improved Electricity Transmission Pricing for the Nigerian Network
The restructuring of electricity system in Nigeria has made the pricing of electricity a challenge. Price forecasting has over time become the centre of intense studies. Considering a market where the Electrical industry is segmented, attempts must be made to evolve a good pricing method. This method however should be economically viable to those participating in all the sectors of the market: generation, transmission and distribution. The aim of this work is to develop an improved transmission pricing method for the Nigerian Network. This is important in order to make the network reliable, fair and protect its operations.This study considered the cost of electricity generation and transmission with the gross annual income of average Nigerian and formulated an electricity pricing model that can be adaptable to the Nigerian power system. This work developed a model for an improved transmission pricing method for the Nigerian Network which was used for forecasting of electricity price for a financial planning period of five years. Within the period considered the best price was projected for five years. The results obtained were validated with that of Transmission Company of Nigeria. They confirmed a very low electricity tariff in the country which is grossly disadvantageous to the transmission company. The developed model will aid both electricity producers and consumers to receive fair share of pricing.