Optimal EDC bill-mix through parameters tuning in an optimization model

Abstract

There has been the problem of inappropriate billing of customers by Electricity Distribution Companies (EDCs) in Nigeria. We considered an explicit minimization constrained optimization model where the objective and constraint functions are all linear, for a scenario involving bills (EDCs) generate for their customers. Our model optimizes the bills for different household types. To get a bill-mix that is optimal in the view of customers, model parameters are tuned to fit in with field data collected by the companies. The model was implemented using the computer software, Solver, and the results are presented.