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Please what is the ease of getting an Electrical Engineering job in Australia with a “recognise graduate” subclass 476 work visa? Cheers

Lets me try and explain electricity tariff in simple terms as possible, probably it might help.

Electricity bill is divided into two: The fixed component and the Variable component.

The variable component is made up of variable Operation and Maintenance cost (repairs, overhauls etc) and Fuel (Gas, coal etc) which makes up 90% of the variable component of the tariff and its usually pass through.

The fixed component is made up of the CAPEX (89%) and fixed Operation and Maintenance (e.g. staff salaries, insurance, NERC fees, taxes etc)
Electricity infrastructure (generators, turbines, transmission and distribution line, transformers etc) transform the energy present in your fuel e.g. gas to electricity and transmit the electricity to you house. Technically the electricity you use is fuel transformed, remember basic physic: energy cannot be created nor destroy but transformed from one form to another.

The variable component of your bill is mainly fuel (90% fuel). As electricity consumption increase fuel consumption increases, this is the unit you consume. This portion of your electricity bill can be managed by consuming less electricity or switching off you source...remember how you manage fuel consumption on your portable generators.

The electricity infrastructure is very capital intensive estimated at USD1M/MW to build. The banks usually fund this capital intensive project based on a payback term or say 10 - 15 years. The payback of this huge loan cannot be based on the variable component of the tariff as you and I might decide not to use electricity or go on vacation for 6 month. Therefore in order to guarantee loan repayment, profit (Return on equity) and other commitment such as salary, insurance, tax, NERC fee, security etc. there should be a guarantee component…your guess is as good as mine ….the FIXED CHARGE.

In a simple term the fixed charge is the cost of providing you the electricity supply infrastructure (either you use it or not) while the variable component (units purchased) is the cost of fuel/electricity you use.

For example your can take a loan from the bank to buy a generator for your house, either you use it or not you have to repay the loan with some interest to the bank…..That is the fixed charge. If you decide to use the Generator, then you have to travel to the filling station and buy the fuel that is the variable component….the unit you buy from PHCN.

The fixed component usually calculated using lot of variables such as cost of infrastructure (CAPEX), debt term, interest rate, gearing ratio (debt and equity portion), inflation rate etc.

I hope I am able shed light on the fixed portion of the electricity tariff.

I am current working with a private company in the electricity sector in Nigeria.
I am turn between two choices: a job with a Nigeria Federal Government Agency or a PhD in Electrical Engineering.
Career path till date: BSc (Nig) - worked for 2 years (Nig) - Msc (UK) - currently working (Nig).
Age: very late twenties, single.
Your advice will be greatly appreciated.