Do we enjoy uninterrupted power supply before?

Are we not running on generators and fuel daily?

My home and office hood are nothing to write home about in terms of power stability

By the way, what happens to ' body language'?

PHCN, kontinu..

kjhova:


You are very correct Goke. Econet and MTN paid almost US$300M each in licensing fees and still spent additionally over a billion dollars to build infrastructure from scratch to the level we are today. They were serious business entities which were already in existence and operations before bidding for the Nigerian licences. They also brought in a functional billing mechanism which put them and not the consumer in charge of bills collection.

The entities GEJ's government sold our power structure to were only briefcase companies with only owners and letterhead papers!! Most of them borrowed funds to pay for the licenses and had no financial nor technical knowhow to improve the structure they were taking over!!!

For those of you who live in Lagos, have you ever seen any IKEDC or EKEDC project around your neighbourhood? Groundbreaking, base cell installation, new 33KVA projects, step down transformers, smart meters that can b remotely tripped off etc

This is not privatisation, no, this is crony capitalism and crass rent collection.

don't mind them, nothing is going on and they want us to swallow their grammar, if they want to raise tariffs, they should provide everyone if not most Nigerians pre-paid meters first afterall, they are doing in some areas, why can't they be patient to achieve that first before raising tariffs.

emzila:
I know this will sound somehow for now, left for me, I had advised Nigerians not to call for the reversal but immediate distribution of card reader metre.

Nigerians have actually been calling for the distribution of the meters right from the beginning but the discos keep dribbling us and taking Nigerians for a ride

Prepaid metres before Increment

I have 2 intuitions about this debate. In principle, the present pricing regime impedes having a viable electricity sector that attracts needed investment. You need higher and more flexible pricing to encourage investors to make the necessary investments in the sector.

My second intution is that higher prices, in a deteriorating macro environment marked by Buharionmics, will expose Nigerians to the downsides of reforms but none of the upsides. International investors are loath to make major investment in Nigeria given the present policy environment. Therefore, the Nigeria consumer might face higher electricity prices without the offseting benefits of higher investment.

Bevista:
Let's put things in perspective a bit.
---
Apart from Transmission, the FG has completely divested from Generation and Distribution of power. The private companies managing the GENCOs and DISCOs are likely not to make any long term investment in the sector if pricing of their services is going to always be politicized rather than regulated by the appropriate agency.
---
15 years ago, even with very low network penetration, we allowed GSM companies to charge Nigerians N25k for SIM cards and N50/min for calls. The companies were excited because that price compensated for their investment risk. They invested billions of dollars in infrastructure, employing thousands of Nigerians and supporting thousands of vendors. Today, SIM cards are less than N100 and calls are less than N7/min. Today, you can practically receive calls from every nook and cranny of the country.
---
My point is that the sooner we accept the initial discomfort of high price, the sooner we will get to the point of constant power and lower tariffs. If we were courageous enough to do this ten years ago, we would probably be generating over 20,000MW today with a much reduced tariff. Postpone it and you postpone progress and development. The price we are not willing to pay today will inadvertently be paid (even more) through high cost of manufacturing and running businesses due to inadequate power supply.
---
The actions of the Senate can only work when trying to force the hand of the Executive, not arm twisting private businesses. The private companies have already invested some money in paying for licenses and setting up offices. GENCOs have invested in buying or building power plants. Investments on further infrastructure will need to come from customer receipts. You don't expect them to go to their bank to borrow money for long term investment without clarity on revenue expectations.

where do we get money to pay all these outrageous bills, don't you get it there is no money in this country for common man. person never see food chop na to pay high electricity bill without light. oshi

Goke7:


if the senate should criminalize estimated billing, does that translate in the provision of pre-paid meters? is it the senate that will provide meters for Nigerians? the present discos privatization should be reversed and made open again with the stakes high for more serious minded fellows to come in instead of the present ones that are not serious at all. This is what am waiting for PMB to do quickly to get us out of this poo.

Criminalising estimated billing doesn't provide meters but it stops the discos from billing customers/ disconnecting them if they don't have a meter. This means if the discos want their money, they need to provide meters.


It makes no sense reversing the privatisation exercise. The country as a whole should be moving forward.

Are you trying to be funny? Wait until they bring such bill to you.

boostdom:


20k power bill for a 2-bedroom apartment, you sure you not running a weed farm?

obailala:
Where would the power come from when the power companies claim they dont have enough revenue to even operate the present facilities, let alone improve?

I would rather say, "pre-paid meters before increment." With that, we know we only pay for what we use.

gbam! simple solution! but I have a feeling those guys are deliberately delaying deployment of prepaid meters..to cheat consumers without..but as for me I d smile coz I have mine

obailala:
Where would the power come from when the power companies claim they dont have enough revenue to even operate the present facilities, let alone improve?

I would rather say, "pre-paid meters before increment." With that, we know we only pay for what we use.

It is a shame that these business men bought these discos hoping to service it with customers money. What happened to loans in banks? Will MTN increase tarriff so as to improve their services? They have to improve services first by investing heavily, overtime they'd recoup these monies...Nigeria has a very large market.
I concur with you on the pre-paid meters but most importantly, they should invest with their own resources not milking their customers.

Is it for lack of imagination or want of clear thinking? You ask people to pay over the odds for what they hardly use.Then, you have the effrontery to ask them to pay more for what has become much more elusive to them.I don't get!

admax:
The senators really needs to be educated on this as most of them don't understand the dynamics. I can't blame them because they only understand politics.

Nigerians are paying the 2nd cheapest electricity in Africa but want to enjoy 24hrs light as if the equipment needed for electricity generation or transmission are cheap!

Azura a 450MW Genco in Edo will spend over $1.2billion to build their plant, sell to NBET who will give Gencos who will sell for stipends while battling with consumer's who don't pay bills and illegal connections etc so Gencos won't be able to pay NBET who won't pay Azura who won't be able to pay their bank loans (and for gas supply)!

Solution: Increase electricity tariff and cancel estimated billing to consumers. Disconnect those that don't pay. This will bring confidence to the market and attract investors!

People are paying 100 times more than the tariff for running their generators!

in summary, Give everyone prepaid meters...

valkingsley:
There have been black out in my area-Awka capital city of Anambra State since last week Friday. I hope they will find a better solution to alleviate the situation. It's killing us.

Where?, Ifite, tempsite, agu awka or inside town..

Bevista:
Let's put things in perspective a bit.
---
Apart from Transmission, the FG has completely divested from Generation and Distribution of power. The private companies managing the GENCOs and DISCOs are likely not to make any long term investment in the sector if pricing of their services is going to always be politicized rather than regulated by the appropriate agency.
---
15 years ago, even with very low network penetration, we allowed GSM companies to charge Nigerians N25k for SIM cards and N50/min for calls. The companies were excited because that price compensated for their investment risk. They invested billions of dollars in infrastructure, employing thousands of Nigerians and supporting thousands of vendors. Today, SIM cards are less than N100 and calls are less than N7/min. Today, you can practically receive calls from every nook and cranny of the country.
---
My point is that the sooner we accept the initial discomfort of high price, the sooner we will get to the point of constant power and lower tariffs. If we were courageous enough to do this ten years ago, we would probably be generating over 20,000MW today with a much reduced tariff. Postpone it and you postpone progress and development. The price we are not willing to pay today will inadvertently be paid (even more) through high cost of manufacturing and running businesses due to inadequate power supply.
---
The actions of the Senate can only work when trying to force the hand of the Executive, not arm twisting private businesses. The private companies have already invested some money in paying for licenses and setting up offices. GENCOs have invested in buying or building power plants. Investments on further infrastructure will need to come from customer receipts. You don't expect them to go to their bank to borrow money for long term investment without clarity on revenue expectations.

It is wrong for you to compare electricity industry with the telecom industry.
We are enjoying the telecom industry today because of the competition. If not for glo that revolutionalised the industry.
But tell me what obtains in the electricity industry today?
Monopoly of supply and choice. ..Price per unit of electricity keep going up and will continue to go up because they (Discos ) don't have competitors.
In which normal society except ours would a sensitive and vital sector like electricity's be privatised without availability of meters.

They had only onething in mind while selling and buying PHCN .... To Milk Nigerians of their hard earned money.
How much have they invested since they bought PHCN over?... Not even a small transformer.
I do not know about supply in your area, where i am .. supply about 3-4years ago is better than what it is now.
We all know they sold PHCN amongst themselves because they saw it as Gold Mine. If they are sincere with their business aim and desire LET THEM PROVIDE NIGERIANS WITH PREPAID METERS. We then shall know how far.

HirstMOG:
APSHIT supporters should keep clapping for Fashola, Daura clown and Lie Muhammed. Fashola is the right man for the job, so don't wail yet. Hypocrite government.

blame the man who sold nepa

omohayek:


And how many investors in the capital markets would be foolish enough to lend money to companies which lack the power to set their own prices? Who would buy the bonds or equity offerings of DISCOs operating in a country where the setting of tariffs is heavily politicized, and both the elites and the masses display zero respect for signed agreements?

I agree that estimated billing needs to go in favor of meters, but most of the complaining about this tariff hike is nothing more than a mixture of wishful thinking, poor budgeting skills, and an inflated sense of entitlement - "private companies should give me cheap electricity at their own expense!". Most Nigerians would be much better off paying even 100% more if it meant they would never again have to rely on their generators, but the short-term mentality is simply too strong in this country for this reality to sink in widely.

Well, a look at this from the perspective of the effect of healthy and continuously growing demand on pricing will obviate your understandable concern on the pricing mechanism and regime. As to the scant regard for signed contracts by The State, truth is, it is navigable with the aid of ADR tools et al. I find your post stimulating! I hail!!!

AZeD1:

Criminalising estimated billing doesn't provide meters but it stops the discos from billing customers/ disconnecting them if they don't have a meter. This means if the discos want their money, they need to provide meters.


It makes no sense reversing the privatisation exercise. The country as a whole should be moving forward.

The senate is not a regulating agency please, the discos are already opposing the recommendation of the senate to increase tariff and you think they will automatically provide pre-paid meters just because of the senate criminalising estimated billing. You have forgotten how lawless we are in this country, there is even a court order restraining the tariff increase which is about to be disobeyed. My brother leave grammar for Hon Patrick, those fellows are not ready to provide any pre-paid meters, if they were, they would have done that long ago.

The privatization process is flawed and can't stand the test of time.

idupaul:
Please would u stop comparing GSM to these thieving discos for the following reasons .

[b]1: GSM firms started with a zero infrastructure and customer base while these discos inherited over 20 million paying customers with 80 percent paying estimate bills.

3: GSM never charged 750 naira as monthly service charge whether or not we use their service but discos did.

4 : GSM companies didn't increase their tariff after 2 years of operation but reduced but these discos instead have increased tariffs thrice in 2 years with nothing to showshow for it.

So so true,
I wonder where all the money Disco generate from all those 80% customer estimated bills and fixed charges plus (money) for prepaid meters money went to...

FG in nigeria need to enforce policies(private/public) that will help in improving the life of the masses(that's where the gov will get money back from taxes/vat/deposit charges etc).
So if the masses are comfortable a bit means we would easier giv back through various means

phlemzy:
The earlier you realise that the current power sector cannot be sustained with the removal of fixed charges and reversal back to old rates,the better. Discos will not do a business without making profits. They need money pay workers' salaries,pay Gencos for the power supplied them, a fraction of their revenues will go to the transmission line maintenance firms, and even out of this revenue,they will still have to pay for the power losses due to the aging transmission lines. At start off point years back,they have loan facilities obtained by them which they still have to service. Getting another loan may not be a right choice for them when they know that the revenue they'll make will not sustain the running of the business. Its very unfortunate that we may keep hovering around 2000-4500MW at generation level since we all are not ready to tolerate any form of increment.

Well said, but I think Nigerians want to see change first before accepting any form of increment. These people are only thinking about turning in profit. Won't be surprised if after increment, its business as usual. First fix the damn light first, then we'll be happy to pay more, even 100% increase.

It shouldn't always be the common man being at the receiving end of these arbitrary call to pay more for everything you can think of.

It was mentioned in the post that the Senate is owing Power firm(s), the 'big men' and government offices and officials should pay up their debt. They shouldn't make us pay to meet their target. Infact these men should sacrifice some of their big allowances for the purpose of infrastructural development.

A lot of money had been pumped into the Power Sector already without commensurate improvement in power supply. They want us to pay monies that will end up in some few people's pocket. I am not convinced that my paying more will translate to any improvement in power supply.

westluska:



It is a shame that these business men bought these discos hoping to service it with customers money. What happened to loans in banks? Will MTN increase tarriff so as to improve their services? They have to improve services first by investing heavily, overtime they'd recoup these monies...Nigeria has a very large market.
I concur with you on the pre-paid meters but most importantly, they should invest with their own resources not milking their customers.

The truth is, whenever you privatise, prices go up, and the prices will remain up until the private investors settle in properly and start recording profits before any price reductions can take place.

The MTN example you gave is a very viable example to also buttress my point, when MTN came into Nigeria, they sold sim cards for over N30k and customers had to pay N50/min (no per second billing) for some of the poorest telecoms services in the world then (hopefully you haven't forgotten that in a hurry). The story has changed today because of favourable competition. In the power sector, Nigerians will never be able to enjoy uninterrupted (or reasonably stable) power supply if the power sector remains in the hands of the government. And the only way the privatisation of the power sector can work is an upward review of tariffs.

In my opinion, I have no problems with an increased tariff especially as fixed charges have now been removed. It would force the power companies to ensure they provide power and it will also force Nigerians to learn to conserve power. The only problem I have with the whole process is the unavailability of prepaid meters.

lacicrips:

Well said, but I think Nigerians want to see change first before accepting any form of increment. These people are only thinking about turning in profit. Won't be surprised if after increment, its business as usual. First fix the damn light first, then we'll be happy to pay more, even 100% increase.

No business works that way, no business man will provide services for free. With the removal of fixed charges, any argument about "improving power first" or "not wanting to pay for service not rendered" is invalid. The only valid argument is for the provision of prepaid meters first.

4Play:
I have 2 intuitions about this debate. In principle, the present pricing regime impedes having a viable electricity sector that attracts needed investment. You need higher and more flexible pricing to encourage investors to make the necessary investments in the sector.

My second intution is that higher prices, in a deteriorating macro environment marked by Buharionmics, will expose Nigerians to the downsides of reforms but none of the upsides. International investors are loath to make major investment in Nigeria given the present policy environment. Therefore, the Nigeria consumer might face higher electricity prices without the offseting benefits of higher investment.

I think this is too pessimistic. The very willingness to stick with the tariff increase, even in the face of vociferous protests against it, would send a strong signal to investors that the Nigerian government does have the will and capacity to protect their interests when necessary.

Ikiriye:
Have you sat down to do a calculation of monthly power consumption in your house.45 percent is wicked bro.what is your salary,has it been increased.let's do maths.having an average consumption of 200kwr = 5250 to include vat.if my salary is 30k and tfare takes 10k and power takes 5250.can you calculate the probably of my survival.we should be reasonable bro.if they step up to 18 Naira per kwr it will be understandable rather than 25naira.

TBH, I don't have any idea what should be the ideal price. My point is that if the price is not right, we will continue to be in a situation where there is no power supply. The sad reality is that these companies cannot continue being operational if their revenue can't cover their cost.
---
Politicizing pricing of private services is not the way to go. We created a regulatory agency (NERC) to represent us. They have said that the way forward is a review of prices. Unfortunately, we all want good things but are not ready to pay the price to achieve it.
---
I wish we could pay lower prices for power, but that is not just going to happen. If only previous governments used oil windfall to invest heavily in the sector, then we wouldn't be here today. We are our greatest enemies but we always want to blame others.

omohayek:


I agree that estimated billing needs to go in favor of meters, but most of the complaining about this tariff hike is nothing more than a mixture of wishful thinking, poor budgeting skills, and an inflated sense of entitlement - private companies should give me cheap electricity at their own expense!

Why would we not complain?
Are you using prepaid meter?
Guy we have the old meter, it is still reading but it's estimated bill we do pay for darkness.

Remember this is the second time they want to increase the tariff, on the 10th Feb 2916, 13k was brought for darkness.
I fuel my gen with 15k least minus oil/service monthly.

Landlord have applied for prepared meter and paid since last year(he photostated the receipt and pasted it near the old meter, till today we are still receiving the estimated bill and the prepaid is yet to be installed, we have complain a lot but you will see new buildings being installed with prepaid, you wonder na same EKEDP

I wanted my own, went with 40k since the prepaid is 39k, I was told of some bribe(settlement) everything will be 45k, got angry and left.

Got tired of paying for darkness, I brought the money(45k), oya giv me the form to fill so that I will go and pay said for now they are not giving prepaid...

So what are you saying,

sddiamond:

where do we get money to pay all these outrageous bills, don't you get it there is no money in this country for common man. person never see food chop na to pay high electricity bill without light. oshi

True, there is no money in the country for the common man. But are we entitled to regular power supply? Who is going to supply it?

phlemzy:
The earlier you realise that the current power sector cannot be sustained with the removal of fixed charges and reversal back to old rates,the better. Discos will not do a business without making profits. They need money pay workers' salaries,pay Gencos for the power supplied them, a fraction of their revenues will go to the transmission line maintenance firms, and even out of this revenue,they will still have to pay for the power losses due to the aging transmission lines. At start off point years back,they have loan facilities obtained by them which they still have to service. Getting another loan may not be a right choice for them when they know that the revenue they'll make will not sustain the running of the business. Its very unfortunate that we may keep hovering around 2000-4500MW at generation level since we all are not ready to tolerate any form of increment.

Yea we better suffer without electricity as we usually do...

Cuz wen u pay bills u still Dnt Hv lite... so wats d essence....

100000 me or 20,000,000mw....we will still Nt hv steady lite...one xcuse from another...

We better stay in darkness as we are used to already..afterall with them we are still using generators....

They shuld go and die....

obailala:
The truth is, whenever you privatise, prices go up, and the prices will remain up until the private investors settle in properly and start recording profits before any price reductions can take place.

The MTN example you gave is a very viable example to also buttress my point, when MTN came into Nigeria, they sold sim cards for over N30k and customers had to pay N50/min (no per second billing) for some of the poorest telecoms services in the world then (hopefully you haven't forgotten that in a hurry). The story has changed today because of favourable competition. In the power sector, Nigerians will never be able to enjoy uninterrupted (or reasonably stable) power supply if the power sector remains in the hands of the government. And the only way the privatisation of the power sector can work is an upward review of tariffs.

In my opinion, I have no problems with an increased tariff especially as fixed charges have now been removed. It would force the power companies to ensure they provide power and it will also force Nigerians to learn to conserve power. The only problem I have with the whole process is the unavailability of prepaid meters.

you use pre-paid meter I suppose, what about those who are still being charged based on the estimated billing system, now that is where the problem lie, no pre-paid meters, no justification for increase simple.

omohayek:


I think this is too pessimistic. The very willingness to stick with the tariff increase, even in the face of vociferous protests against it, would send a strong signal to investors that the Nigerian government does have the will and capacity to protect their interests when necessary.

It's a strong signal but it is insufficient. Take the problem of the fixed currency regime. Suppose ESKOM wants to invest in a domestic project with an estimated cost of circa 200bn Naira. If they wanted to finance this using external financing, despite the actual or market value of the project being $550m (assuming 360 Naira to $1 exchange rate), they face the prospect of having to raise $1bn to meet the official exchange rate. It's difficult to successfully deregulate a sector when the macro-framework has a command economy policy bias. Raising prices in one sector without addressing some major structural defects like the currency regime is a fast route to a rentier industry beneficial for the incumbents but which does not generate sufficient investment to offset the additional costs increased prices impose on consumers.

Bevista:
TBH, I don't have any idea what should be the ideal price. My point is that if the price is not right, we will continue to be in a situation where there is no power supply. The sad reality is that these companies cannot continue being operational if their revenue can't cover their cost.
---
Politicizing pricing of private services is not the way to go. We created a regulatory agency (NERC) to represent us. They have said that the way forward is a review of prices. Unfortunately, we all want good things but are not ready to pay the price to achieve it.
---
I wish we could pay lower prices for power, but that is not just going to happen. If only previous governments used oil windfall to invest heavily in the sector, then we wouldn't be here today. We are our greatest enemies but we always want to blame others.

There is no politics here bruv, the privatization process is flawed and the way to go is a more comprehensive privatization process that will bring more serious players than this skelewu dancers we presently have. They are the problem, do you know that we would have been at the mercy of fuel marketers and be buying petrol at a very high rate now if not for the timely intervention of PMB and his tactical removal of subsidy? That is what we need right now in the power sector, we need to be free from the whims and caprices of the unserious dicscos

obailala:
No business works that way, no business man will provide services for free. With the removal of fixed charges, any argument about "improving power first" or "not wanting to pay for service not rendered" is invalid. The only valid argument is for the provision of prepaid meters first.

@the bolded, 'which the discos are not ready to provide' That valid argument is the reason why most guys can't support any increase now.

Make meter available bfor increment.

Shikena...