COMPARATIVE COST OF ANALYSIS OF ENERGY UTILIZATION FROM PHCN AND CAPTIVE POWER GENERATORS :- CASE OF A BEVERAGE INDUSTRY
Abstract
Energy and its effective utilization are a paramount importance especially in this era of ever increasing demand for energy coupled with incessant interruption of power supply from the national grid. This study investigated the financial implications of incessant power outages by power holding company of Nigeria PHCN.
In this survey work, 7up bottling company Ilorin was used as a case study. For this fair assessment, data on energy used for three consecutive years i.e. 2004, 2005 and 2006 were collected. The sources of energy used were identified and evaluated. Specifically, the study compared the use of diesel through the use of 3 captive power generators and electricity supplied by PHCN. The data collected was processed and analysed. The cost of obtaining electrical energy from each source of supply was also calculated.
From the study, it was found out that, the percentage of PHCN to diesel energy used for years 2004, 2005 and 2006 were 61%,7.76%and 76.08% respectively. In the similar manner, the corresponding values obtained for percentage energy supplied by captive power generators (diesel) were 39%, 29.4%, and 23.92% for 2004,2005 and 2006 respectively. The study also revealed that, the average cost of the product using electricity supplied by PHCN and diesel during outages is N1.66 per litre of the products, while energy cost per litre of the product without interruption in supply by PHCN is N0.625. However, if the company had relied on diesel alone, the cost of product per litre would have been #2.498.
The study concluded that, though, electricity supplied by PHCN is cheaper, the company would have lost about 47.86% of its expected profit, if the company had depended solely on the power supplied by PHCN due to incessant interruption in her supply.
