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LOWER ENERGY TARIFFS
LOWER ENERGY TARIFFS
Optimizing the Blended Cost of Energy (BCOE)
In the current Nigerian energy landscape, the true cost of power is never just the NERC-regulated grid tariff. For most commercial and industrial consumers, the Blended Cost of Energy (BCOE) is a mix of grid supply and high-cost captive power (Diesel/Gas generators).
The Dynamics of the Power Mix
- Grid-Dominant Mix: Consumers receiving near-constant grid supply pay a BCOE closest to the statutory tariff (currently above ₦200/kWh for Band A).
- Generator-Dominant Mix: Those relying on standby generators for 12–20 hours a day face a drastically higher BCOE. This is because generating power via diesel is significantly more expensive than grid-supplied energy.
Every hour that the national grid fails, your blended tariff climbs. When diesel prices are high, your “real” cost per kWh can easily triple the grid rate.
The X-Tend Impact on Your Bottom Line
The most effective way to lower your blended tariff isn’t just by hoping for more grid hours—it’s by reducing the specific fuel consumption of your generator fleet.
Consider this hypothetical scenario:
Assume a facility relies on a generator-heavy mix where the current cost of power is ₦850/kWh, largely driven by a daily consumption of 500 litres of diesel to maintain operations.
By integrating X-Tend Performance Conditioners, that same facility can reduce daily consumption from 500 litres to 380 litres through improved combustion efficiency and reduced internal friction.
From High Expenditure to Managed Efficiency
Reducing your diesel volume directly slashes your operational expenditure (OPEX). By lowering the fuel input required to generate the same kilowatt-hour, X-Tend effectively “pulls” your blended tariff down, moving it closer to the affordable grid rate and away from the punishing costs of raw diesel generation.
In an era of ₦200+/kWh grid power and ₦1,200 – ₦1,800 / litre diesel, you can no longer afford to ignore the efficiency of your combustion. X-Tend doesn’t just treat fuel; it optimizes your entire energy balance sheet