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LOWER ENERGY TARIFFS
LOWER ENERGY TARIFFS
The tariff charged by the Electricity Distribution Companies is determined by the National Electricity Regulatory Commission. The tariff finally paid by the consumer is a blend of the cost of generating energy from the sources ( back-up generators, solar, wind turbines, etc ) relied upon by the consumer.
Consumers who receive nearly 24hrs of electricity from the national grid will pay tariffs closer to what has been advised by NERC. Those who rely on stand by generators will pay higher as the cost per KWH of generating power via petrol / diesel / gas generators is much higher than the cost from grid generated power.
Anyone receiving a power mix of 20hrs from the grid and 4hrs from other sources e.g generators will of course pay a blended tariff higher than the tariff if all power was generated from the grid but definitely lower if the power mix were 4hrs from grid and 20hrs from generators.
Assume the tariff for a 4hrs grid and 20hrs generator mix was N200/KWH mainly because the volume of diesel required to generate power for 20hrs was for the sake of argument in this case 200 litres.
This is hypothetical. Every time the power from the grid reduces and consumers rely more on back up power the tariff would increase.
However reducing the volume of diesel required to generate power for 20hrs from 200 litres to say 120 litres via X-Tend would directly affect the diesel expenditure cost.
Reducing the diesel expenditure directly reduces the power generation cost and by extension the tariff to be charged moving the tariff back in the direction closer to the tariff charged if all power were from the grid.
In other words say goodbye to N200/KWH and hello to tariffs closer to N96/KWH. .