Effect Of Covid-19 Pandemic On Power Sector Recovery, And Market Growth Plan In Nigeria
This study was on effect of COVID19 pandemic on power sector recovery, and market growth plan in Nigeria. The total population for the study is 200 staffs of PHCN in Abuja. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made HRMs, marketers, administrative staffs and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies.
- Background of the study
The Coronavirus (COVID-19) has resulted in mass production shutdowns and supply chain disruptions due to port closures, causing global ripple effects across all economic sectors in a rare “twin supply-demand shock. The Covid-19 coronavirus was first identified in China’s Hubei province in December 2019 and has since become a global health threat, impacting 140 countries and triggering the World Health Organization (WHO) to declare it a global pandemic.
The power industry is among the sectors affected. Power Technology spoke to major stakeholders about Covid-19’s impact on generation and supply. The COVID-19 lockdown has led to shut down of all but essential commercial activities across the country. Consequently, the electricity demand from industrial and, commercial customers has reduced significantly while the residential demand is expected to have increased.
The Coronavirus Disease 2019 (COVID-19) pandemic is impacting the electric power sector directly (e.g., illness and fatalities among workers) and indirectly (e.g., reduced electricity sales). Most indirect impacts to date have been caused by the economic effects of the pandemic. Electricity customers may be unable to pay their monthly electricity bills if they have lost income because of the pandemic. Under normal conditions, utilities and their state or local regulators put in place procedures to stop electric service to non-paying customers (these procedures are commonly known as shutoffs). Many utilities have voluntarily suspended shutoffs and many states and cities have banned shutoffs as part of their COVID-19 response. Many of these shutoff moratoria are temporary, raising some concerns that shutoffs may resume just as the summer season increases the need for air conditioning. Many utilities anticipate losing revenue in the near term, from a combination of reduced sales and shutoff moratoria. It is unclear how any resulting lost utility revenue may be addressed when normal conditions return. Revenue shortfalls are often recovered by higher electricity rates in future years, though regulators could be reluctant to increase rates if economic activity remains low. It is also unclear what actions utilities and state or local regulators may take if customers accrue large unpaid bills during a shutoff moratorium. Most shutoff moratoria do not include bill forgiveness customers must ultimately pay for the electricity they use
Statement of the problem
COVID-19 may affect industry investment, potentially raising issues for Congress. In the near term, companies may not be able to complete planned construction activities in time to meet deadlines for expiring tax credits for wind, solar, and carbon capture projects. Electricity customers may be unable to pay their monthly electricity bills if they have lost income because of the pandemic. Under normal conditions, utilities and their state or local regulators put in place procedures to stop electric service to non-paying customers (these procedures are commonly known as shutoffs). Many utilities have voluntarily suspended shutoffs and many states and cities have banned shutoffs as part of their COVID-19 response. Many of these shutoff moratoria are temporary, raising some concerns that shutoffs may resume just as the summer season increases the need for air conditioning.
Objective of the study
The objectives of the study are;
- To ascertain the level COVID19 pandemic has effect power sector
- To ascertain the effect of COVID19 on market growth
- To ascertain whether COVID19 is the basic causes of non-stable of power supply
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
H0: the level COVID19 pandemic has not effect power sector.
H1: the level COVID19 pandemic has effect power sector
H02: there is no effect of COVID19 on market growth
H2: there is effect of COVID19 on market growth
Significance of the study
The study will be very significant to students, power sector and the Nigeria government. The study will give a clear insight on the effect of COVID19 pandemic on power sector recovery and market growth plan in Nigeria. The study will also serve as a reference to other researchers that will embark on the related topic
Scope and limitation of the study
The scope of the study covers the effect of COVID19 pandemic on power sector recovery and market growth plan in Nigeria. The researcher encounters some constrain which limited the scope of the study;
- a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
- b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
1.7 DEFINITION OF TERMS
INFECTIOUS EPIDEMIC: Infectious diseases are caused by pathogenic microorganisms, such as bacteria, viruses, parasites or fungi; the diseases can be spread, directly or indirectly, from one person to another
COVID19: Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.
Power sector: The Electricity sector in Nigeria generates, transmits and distributes megawatts of electric power that is significantly less than what is needed to meet basic household and industrial needs.