Investigation shows that the Sokoto State power plant will generate electricity at N178 per kilowatt, more than three times its current price in the region.
The 38-megawatt Independent Power Plant (IPP) was built by the state at the cost of N3.8 billion and will consume 33, 000 diesel daily.
Data from the Nigerian Electricity Regulatory Commission (NERC) shows that the highest approved price for residential customers under the Kaduna Electricity Distribution Company (Kedco), where Sokoto belongs, is N45 per kilowatt.
The plant “consumes 33,000 litres” of diesel daily, the director-general of the project, Mr Umar Bande, said during a test run of the plant last week.
Findings show that the state will be spending an average of N6.8 million daily on diesel at a market value of N206 per litre. By this, the plant will consume N204 million worth of diesel every month.
The annual cost of diesel to be consumed by the plant is N2.47 billion per annum, more than two-third of its worth on fuel every year.
By the estimated 33,000 diesel per day, the plant will gulp 868 litres of diesel to generate one megawatt (1000 kilowatt), amounting to N178,808 for every megawatt, using a market value of N206 per litre of diesel. A kilowatt generated by the Sokoto plant will, therefore, cost N178.8.
Kaduna Electric, whose network will supply the power to customers, presently sells electricity at N45.76 per kilowatt hour, according to the 2015 Multi-Year Tariff Order (MYTO) approved by NERC.
The Sokoto plant, which contract was awarded in November 2008, has a multiple type turbine that can use diesel, gas or LPFO, Bande said. Officials also said the plant would commence operation after the transmission infrastructure and other minor aspects are completed.
Kaduna Disco gets an average of eight percent of power daily from the national grid through the Transmission Company of Nigeria (TCN), which it allocates to Kaduna (66 percent), Kebbi (17 percent), Zamfara (nine percent) and Sokoto (eight percent).
The MYTO 2015 shows that residential customers (R2-SP) presently pay N26.37 for every kilowatt hour; the R2-TP pay N28.05; residential customers 3 (R3) pay N42.74, and R4 customers pay N45.76.
Commercial customers under class 1 (C1) pay N33.17; C2 pay N38.88; and C3 pay N44.22. For the industrial customers, D1 customers pay N36.95; D2 pay N39.13, and D3 pay N44.22.
Customers under category A1 (agriculture and public agencies) are paying N33.17, A2 pay N38.56, and A3 pay N39.13. Other customers who use streetlights are put under ST1and they pay N30.30/kilo watt hour.