Electrical energy poverty among micro-enterprises: Indices estimation approach for the city of Ibadan, Nigeria

In this paper, indices that could evaluate electrical energy poverty among micro enterprises are developed with the aim of pointing out and suggesting the area of intervention to improve productivity of the micro enterprises. These indices are: device suitability index, electricity affordability index, electricity availability index and composite electrical energy poverty index. The indices are measures in a scale of 0-1 with 0 being the least electrical energy poverty (desired value) while 1 denotes 'worst' acute electrical energy poverty. To enhance the understanding and applicability of the developed indices in measuring electrical energy poverty, data relating to electricity usage among micro enterprises for the city of Ibadan is obtained through questionnaire and interview of six (6) most common groups of micro enterprises (barber salon, beauty salon, document & IT, tailoring, sales consumables and sales non-consumables (i.e. clothes, shoes, electronics etc.) in sixteen (16) different locations in the city of Ibadan. The data are then applied to the developed indices in a step wisely manner. Some of the key results reveal that micro-enterprises in the city of Ibadan are doing well in terms of possession of electrical device. However, electricity availability is poor with significant negative effect on business productivity. The developed indices have the capability to suggest the areas that need improvement in order to improve overall electrical energy poverty. This paper serves as a good tool that could aids decision making at improving the business activities of micro enterprises.