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Different sources of electricity in Cameroon

production means the quantity of electricity generated by any means and any ancillary transport activity to the high voltage busbar positions of power. Source of production comes from hydropower and thermal power.

Hydropower is almost 95% of electricity production in Cameroon, and Sanaga River [1] is the main source of production. On its course, dams are built Song-Loulou, which has a capacity of 390 MW, and Edea, whose capacity was about 263 MW. Of dams, (Mape, and Bamendjin Mbakaou) were constructed upstream of the Sanaga to regulate its price in periods of low flow. The total capacity of these dams is about 7.8 billion m3.

During 2001/2002, the total capacity of these dams has risen to 5.1 billion m3, down from 3.7 billion m3. There has been gradually increasing this capacity in 2002/2003, but the level reached was lower than the year 2000/2001. The direct consequence was the decline in electricity production. The figure below shows the changes in the production of electricity from two main sources, namely hydro and thermal.
[1] During the dry season, the natural flow of the Sanaga can drop 5000m3 / 80m3 S / S.

There is a decline in electricity production in 2002/2003 following the decrease in flow of the Sanaga River. The direct consequence was the decline in production from hydropower. It also notes an increase in production in 2003/2004. This upgrading of the production is partly due to increased production of thermal origin in early 2003.

Increased electricity generation from this source overcomes the shortcomings can be observed in periods of low flows. It is one of the priorities of AES-Sonel who in two years, has built new power plants in Yaounde (Oyomabang) Douala (Log-Baba Bassa and IIIB) and Bafoussam for additional production of 47 MW. The total cost of these investments was estimated at 35 billion FCFA. In addition, the company has invested nearly 25 billion CFA francs in the construction of a power of 80 MW Limbe running on heavy fuel and is already operational. The AES-Sonel also intends to build a gas power plant of 150 MW will be operational in 2006. In addition, 64 billion CFA francs were invested in the year 2004 and CFAF 30 billion will be injected in 2005 to improve the functioning of the network.

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Measuring the Welfare?

This can be done from a function of social welfare or social surplus.

measurement from a function welfare
A social utility function is a rule or group aggregate levels of individual welfare. Consider the following program is to maximize social welfare:

Let the consumption vector of consumer i and , the vector of available resources.

If you look at a variation of the initial resources , with corresponding changes in consumption , with prices constant, the resolution of this program leads to the result below:

This result shows that the change in welfare is equal to the variation of resources weighted by price.

Measuring the social surplus
This method is to calculate the social surplus from the cost functions and demand. The surplus Social is defined as the sum of consumer surplus and producer surplus. The method of calculating the social surplus and the loss of welfare due to monopoly is shown in the figure below.

The pricing at marginal cost (MC) is the point F defined by the OA and the price level of output Q *. In this situation, the monopoly was forced to sell at a loss. He recorded a deficit equal to fixed costs ABCD.

The pricing of the average cost is the intersection of the curve of average revenue and average cost (C). This second situation is more favorable the producer than the last, as it covers its production costs, but it causes the decrease in welfare for the community. Indeed, passing from F to C, the consumer surplus is reduced by the surface of the trapezium AFCD, while producer surplus is increased by the rectangle ABCD. The net loss of welfare is the triangle BFC.

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Electricity demand in Cameroon

The evolution of the total number of subscribers is préssentée in the table below

This table shows an increase total subscribers over time. It is noted that before privatization, consumers were grouped into three categories: Consumers in low voltage, medium voltage and high voltage. Subscribers to the low voltage class represent more than 95% of the total number of subscribers.

After privatization, we find that low-voltage, 89% of customers use electricity for exclusively domestic, 10% are business subscribers and subscribers using 1% of electricity for public lighting . Medium-voltage, over 85% of the subscribers belong to general scheme. Regarding the high voltage, five subscribers are classified in this category it is mainly ALUCAM SOCATRAL, PPC (ex CELLUCAM), and CIMENCAM CICAM.

The distribution of consumption will be presented following types of voltage: low voltage (LV), medium voltage (MV) and high voltage (HV). The figure below shows this distribution.

The total electricity consumption has increased over time and with the number of subscribers. It is found that consumption of high-voltage customers representing over half the consumption total each year. The annual consumption of subscribers at low voltage is about 25% of total consumption, and that of the middle class subscribers voltage is about 23%.

Moreover, consumption in domestic use, professional and public lighting are proportional respectively to 66%, 32% and 2% of total consumption low voltage. Average voltage, 57% of total consumption is allocated to the general system subscribers.

After the privatization of SONEL, electricity consumption increased at the same time that tariffs; figure below shows this trend.

We can see that the total electricity consumption has increased substantially after privatization, and coincided with increased rates of consumer categories low and medium voltage. However, rates for subscribers of high-voltage class have not suffered a significant increase, although they consume more than half of electricity generated.

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The optimum consumer

The goal of rational consumer is to maximize its usefulness in its budget constraint. Suppose that consumes an amount Electricity x1 x2 and a quantity of other goods, the problem can be written as:

The budget constraint or budget line defines a line in the plane (x1, x2). Solving this program yields the optimal quantities of electricity x * 1 x * 2 and other goods that maximize consumer utility.
Graphically, this optimum can be characterized as follows:

This figure characterizes the optimum of the consumer. The utility is maximized point of tangency of the curve and the budget line. The pair (x * 1, x * 2) represents this optimum. It also shows that the increase in electricity consumption would automatically lead to reduced consumption of other goods, so that the budget constraint is saturated.

This defines the demand function of a property. The figure below shows the demand function of good X1.

function of electricity demand expresses the optimal choice of the consumer depending on the price of electricity and how much income it provides. The demand curve is an inverse relationship between the quantity of electricity consumed and its price.

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The optimum power producer monopoly: evidence from the case of SONEL

The problem of the producer is to determine the quantity Q that maximizes its profit (the difference between its revenues and its cost of production). Profit л (Q) = PQ - TC is a function of the quantity produced. Its maximization leads to equal marginal revenue and marginal cost. The selected production is thus defined by this equality. The figure below shows this equilibrium.

The function Q (P) which combines the selling price the amount produced is called supply function of the company. She is represented by the portion of the marginal cost curve lying above the average cost curve (MC). Is an increasing function of price.

A monopoly operates so at a point where price is above marginal cost, whereas a competitive firm operates at a point where price is set at marginal cost. Monopoly, as is the case for AES-Sonel, the price will be higher and output lower (PM and QM), whereas in a competitive situation (P * and Q *) is the otherwise. The consequence is that electricity consumers will benefit from a lower level of satisfaction when the sector is organized as a monopoly rather than as competitive.