nateevs:

No one has asked the crucial question?

What is the need for tariff increase?

an even more crucial question is. . .how much does it cost to produce said electricity?

sincerely, i dont understand a lot of u guys here, increase in tariff again is nothing but a bigger fraud! Till date , am on estimated bill and those fools called PHCN just charge me anyhow. Just 3 of us in my apartment, my bill use to be around 2-3k a month. now they charge me 5k after the increment. Now we talking of another rise in tariff. and to make matter worse, they serve my area with 2 days on and one day off, NONSENSE!!!

an even more crucial question; why are they still not supplying the self charge meters?

Atleast people will know they are paying for what they are using whatever the rate


_{and this fallacy about 'almost everyone use a generator' you ever been to my village?}


the truth is these so called private investors will ask for more every three years, instead of competing against themselves for customers
In about four years time they'll form a cartel, fixing prices citing 'massive' improvement with their investments
Almost like the rail companies in the UK with their annual increase

I am ready to pay more. We are enjoying electricity for nonesense fees in this country truth be told. I spend over 60,000 naira monthly on petrol. Then I pay abt $3000 monthly to NEPA, too sad.

kalokalo:

@ Topic

Even this tariff increase is still not enough to attract private investment in the power sector. The people best placed to set tariff are private power companies based on their cost to generate and distribute this power. The government will never set a cost reflective tariff due to political backlash.

Private firms will set cost reflective tariffs as they are not charities. It is when PHCN successor companies have been privatized that we will really know real prices to pay. The NERC is putting the cart before the horse by setting prices now when the companies are still being run by the government.

When our power sector is being run by private firms; losses and theft, poor billing, bribery will reduce or disappear. The above named ills used to happen when Nitel ran the telecom sector and has virtually disappeared under private telcos. You pay upfront for what you use.

Dauchman:

How does increasing tariff help sort out the light situation in Nigeria when the infrastructure to deliver steady power supply does not exist. Someone mentioned telecoms, if I remember clearly it was even more expensive when we only had 090, so what is the rationale.

I say bring in companies to deliver and generate power supply and let them through market forces set the price and see if people would not pay when they have 24x7 light.

If the proper infrastructure is in place, e.g e-meters, when you don't pay your bills you don't get electricity. That automatically deals with people who refuse to pay their bills and officials who take payments and issue fake receipts. Increasing tariff without the product would only lead to more chaos.

You guys need to understand the problem here. It is a very simple problem, but complex solution. Here is the problem is conversational mode:

Government: Please private investor, come build power station, we have a very large market for power.

Private Investors: Indeed, you have a large market, but your security situation is bad, and tariff is slow, increase tariff so that I can try face the security risk in the worse case.

Government: I will increase it gradually, hence Nigerians will resist it. NLC, and Power Workers are already resisting privatisation

Private Investor: We are in business of profit making. If the tariff is not right, we will not come. Keep increasing it, while we wait. We dont trust your policy trust. We could invest so much only for your NLC to go on strike and ask for reduction.

Government: We are really desperate, pls help. Infact, if you can't build yours, pls buy mine and operate.

Private investor: We will buy yours, but all the same, we need the tariff raised, because we cannot afford invest and wait endlessly to recoup our investment. We are not even sure if your country will still be in 5 years with all these ethno-religious violence.

Government: Well, we will do our best to increase it to the optimal, but mind you, time is running and we cannot continue to wait or beg you to come. So will will start building more power stations on our own, whenever you are ready, let us know.

Private Investors: Then we have an understanding. Let see how this pan out; we are by the way still consulting with our home government.


Guys, that is an illustration of the challenges faced by government in tackling the power problem. Privatization,
while still the best option is fraught with the potential for ransom and blackmail especially in view of the size of funds and maturity time required.

Time to start preparing on how to by pass my A/Cs and Treadmill. I have been preaching against this to all my neighbors but i guess its time to join them.

hmmmm increase in Tarrif with unstable electricity God go punish any Nepa wey come close to my Gate

Nigerians are funny people!
We always have an excuse for every failure!

These argument reminds me of the "Petroleum Pricing Reform" that  happened Seven (7) Times in Eight years, under OBJ!

The same "lame excuses" that were being offered at every price increase, is the same excuse l am reading here again!

Whats the problem with Nigerians? Brain dead?
Why do we always believe that "the more expensive something is, the better it is"?

Check all the fake products in our midst, we will buy them once the "seller/faker" prices them higher/costlier!
Or have you never bought a fake drug or car spare parts before?

What irks me most is that all these so called technocrats know NOTHING!

Infact, their "definition" of reforms begins and ends with PRICE INCREASE!
Yea, just increase the price and everything will be fine, right?

Just like their mates in the industries/business, their ONLY definition of "Corporate Reform" Starts and ends with "Staff Retrenchment"!

Hmmm, this "suffer-head" will never stop, l pity Nigerians so much!
Peace-loving, docile and foolish at the same time!
Blessed with vultures and vipers as leaders/decision makers!

(shakes head in sadness but sheds no-tear for a foolish generation under siege from corrupt leaders!)

We can pay it comfortably as long as there is a steady power supply

^^^ if you want stable electricity come to Republic of Benin

@ Compaq, God bless u wt greater wisdom.

@ PointB, u try small bt u no get am finish.

@ all,

Price increase is sine qua non to electricity improvement in Nigeria. D electricity marketing system has been too cheap to make any private investor want to come and participate.

E.g

1. NGC supplies d gas to generating station at ridiculously low amount compared to international market price.

2. PHCN generates at ~#14:50 and distributes and sells at <#7

3. Private owners/investors will source gas at standard market price. (can't value quote off hand here, but worked on it years back)

4. Compete wt PHCN on same distribution/consumer market.

It's obvious enough dt PHCN pricing isnt economically feasible. Already d business entity runs at loss, d price adjustments r mere gradual attempts to bring pricing at reasonable par wt cost. Nothing profitable yet. When d pricing reaches d normal/proper range ( circa #14:50, wc is about average unit pricing internationally), it becomes attractive enough for private Investors to come In.

Also note dt despite d vice-away price PHCN gets gas feedstock, its still generating at abt same cost wt ones buying at standard rates. That shows high system inefficiency at above 60% just few years back. Meaning dt if dey got their stock at full market value, it wld be much over #20.

Average cost of generation using private gen set is ~#45.

All fact presented above if frm work wt Energy Commission of Nigeria in 2007/2008.

How much does diesel cost per hour? If it is constant then this might be good.