The Role of Pricing Policies in Electric Power Systems The Case of Sudan

Sudan is facing acute shortage in electricity supply, where demand is always overshooting the supply. This has resulted from delays in implementing energy projects due to lack of external and internal financing as well. In. addition, the subsidized prices of electricity has resulted in increased household energy consumption reaching 52% of total electric energy consumption. Since June 1996, the NEC has introduced new pricing policies so that it can cover operation and maintenance cost, reduce subsidies and direct electric energy to productive sectors rather than services. To assess the effect of those policies, data concerning electricity generation and consumption in different sectors in the period 1987/88 to 1996/97 were collected from NEC monitoring reports. hi spite of discrepancies in household consumption of some years, street lighting and internal NEC consumption, the data are quite indicative and sufficient for the intended analysis. In, this analysis, two years data after implementing the new pricing policies were compared with previous consumption pattern. Further, most of the analysis will concentrate on the National Grid (N.G) with special emphasis to Khartoum State, as being the major consumer of the generated electricity in the country and major industry is clustered around Khartoum. This is unlike regional cities which rely on isolated stations with limited generating capacities. This study is meant to assess and present the effect of the newpricing system on consumer behavior and its role as . an energy conservation mechanism that will enable NEC to reserve more energy to productive sectors.