ratchy:
may God embezzle all your blessings just like Alison madueke embezzled Nigerian petroleum money

Why curse him. You should have simply typed Amen to his prayer since you like what APC is doing.

One of the very first legislations the senate made was the removal of the fixed maintenance charge from electricity bills and 6 months on we are still waiting for its implementation. Is it not mind boggling that the barber at a street corner pays the same maintenance charge as an industry as large as Guiness or Dangote. Nigeria is a joke!!!

NLC always fighting against price

I hate people who do not have standard, when will nigerians grow? I wonder if all the people that make statements here are in nigeria or they are in another country? Maybe they are paid to be writing rubbish.

Let us face the fact, this government is not sincere, they are not helping nigerians, I am tired of their lies and I cannot keep praying for people who are not sincere.

Let them wake up and do something to make our country better.

People are abusing NLC, what will they say about the moderators of nairaland and seun?

I am not afraid of them blocking me but I have to say the truth.
Let us wake up and call a spade a spade and not a working tool.

Happy celebration to all Nigerians.

[quote author=philtex post=41293453][/quote]k is d single work dat means so Much, u too receive brain.

I am tired of nigeria

2n2k:
Government is the one putting itself in trouble with this so-called labour union. If govt claimed that the electricity companies have been privatized, why is it involved in announcing the increase in tariffs? They are private companies, they should be left to handle their pricing subject to regulations.

The prices of electric cables and fittings that I buy from 'OkeyGod International' were jerked up by 30% last week just because he heard that dollar exchange rate has gone up to N280. Nobody will shout about that but if it had been govt that did that, we would be out on the streets. Traders jerk up prices anyhow during festivities with no whimper from anyone.

With low naira value, there is no way the power sector is going to survive on the old tariffs. Simple.

If the Government had solid monetary policy the Dollar won't have gone up to N280 and ' OkeyGod International' won't have jerked up his price

Demainman1:


Why curse him. You should have simply typed Amen to his prayer since you like what APC is doing.

its 50/50 thing, he gave me his word and i gave mine back. Abi fight dey there?

oluseyiforjesus:
Uncle Fashola let's hear ur own side of the story. Meanwhile this Fuel scarcity could be a blessing in disguise; some pple have been Mark 4 death on their way to celebrate xmas but the fuel scarcity stop them. Let somebody shout Hallelujah.

Hallelujah

chinchum:
No point, they should rather fight hard to ensure prepaid meters are distributed at no cost, and the value can be recouped over the years. There are no service charges any longer on the prepaid meters.

I wonder why Naija things are always different. Some 'cabal' are just using this meter thing to rip Nigerians off. Electric meters are the property of the electricity provider p world over. It is supposed to be installed and serviced regularly by the company at no extra cost whatsoever. Jeez.

On a more serious note. In as much as the FIXED CHARGES has bn removed, am ok with the hike price now. Because no light no money for phcn

Demmocrats:


Are we the only nation in the world that majority of there income is through Oil, why are we the only Nation suffering, even during the Oil boom some ijiat Governors refused to pay minimum wage of 18,000 now the price of Oil is slashed we are still hearing the same story from our Governors, why are few Nigerians controlling resources meant for millions, why can't our leaders change this country for good.

I like your post gidigidi gaan ni!

These people see us as fools to be exploited.

price increase HAS NEVER BEEN a panacea for better services ............ never in the history of Nigeria.



Lastpage!

QuiverBox:


If the Government had solid monetary policy the Dollar won't have gone up to N280 and ' OkeyGod International' won't have jerked up his price

There is no sane monetary policy on earth that could have defended the value of the Naira in the face of an oil price crash from $110 per barrel to $36. The only way to keep the old value without creating a black market like we have now would have been for the CBN to jack up interest rates to levels that would have destroyed every business with a loan in the country. The fact is that Nigeria is earning a lot less foreign income, and the purchasing power of the Naira must reflect that.

[quote author=philtex post=41293453][/quote]
Tell them o. Tariff increas and Fixed charges removed, foolish NLC still dey complains

Why did it take them a week to react, they have sold their destiny for a porridge.

#toothlessnlc

Toktee:
Iam a Buhari suppoerter,but this tarrif of a thing is madness,in the month of oct/nov,i can count how many times i saw light in my area,at the end of november phcn supprised us with N13,000 in november alone,first bill in the new house,,on december 14,they show up again with december bill,and i asked,where do you guys got the billing from for i have not used light up to a month.
it is total madness,,now instead of hitting the streets to protest this madness,some people will soon appear here to blame buhari as if tarrif increase started under him.

Dont pay that 13K.
Just pay what YOU think is reasonable (like 3K).

When they come to cut your light, prevent them if possible or reconnect it back.

Just ensure you pay "something reasonable" every month.

Its a matter for the courts eventually.
The new NERC law (tariff order 2015) states that "if you dispute a Bill, PHCN cannot disconnect your power during the period of dispute..... but you keep paynig the old rate you normally pay"



Lastpage!

2n2k:
Government is the one putting itself in trouble with this so-called labour union. If govt claimed that the electricity companies have been privatized, why is it involved in announcing the increase in tariffs? They are private companies, they should be left to handle their pricing subject to regulations.

The prices of electric cables and fittings that I buy from 'OkeyGod International' were jerked up by 30% last week just because he heard that dollar exchange rate has gone up to N280. Nobody will shout about that but if it had been govt that did that, we would be out on the streets. Traders jerk up prices anyhow during festivities with no whimper from anyone.

With low naira value, there is no way the power sector is going to survive on the old tariffs. Simple.

Thank you for being a voice of reason in this discussion! Too many Nigerians seem to start their "reasoning" from thinking about what will benefit them, rather than analyzing situations objectively.

Tariff values were already too low for the gencos to cover their costs, but the weakening of the Naira over the last year has only made the problem worse: it's no surprise they're producing less electricity, as every extra watt they generate is at a loss, and these are supposed to be for-profit entities. Why would anyone would expect from a power company what they would never think to ask of their local butcher or trader?

I am no defender of this government, but the reality is that Fashola's announced tariff increases are probably less than what the gencos would charge if they were free to set their own prices. As long as prepaid meters are handed out as promised, people will have little justification for complaining. I personally would rather pay twice as much for a steady power supply that I can rely on than a "cheaper" service that comes and goes erratically.

banio:
NLC rejects everytin so that they will be appeased. How can 9ja move forward when we have many clogs on the wheel of progress.
My only concern is that I need prepaid meter, even if it means buying it. Am saying so because I pay 4 power that I don't use.

Reminds me of Gov Oshiomole (as NLC President) and Reuben Abatti (as Guardian Newspaper Editor), during the fuel hike protest under OBJ.

These traitors sold the struggle out for parcels of land and a lot of money (which Oshiomole finally used to launch his Governorship ambition) ..
...and Reuben Abatti got paid back by being made a mouth piece of the Government, as Spokesman to OBJ Govt.

NLC is a sellout, they just want to use the masses to advance their own personal cause!



Lastpage!

omohayek:


Thank you for being a voice of reason in this discussion! Too many Nigerians seem to start their "reasoning" from thinking about what will benefit them, rather than analyzing situations objectively.

Tariff values were already too low for the gencos to cover their costs, but the weakening of the Naira over the last year has only made the problem worse: it's no surprise they're producing less electricity, as every extra watt they generate is at a loss, and these are supposed to be for-profit entities. Why would anyone would expect from a power company what they would never think to ask of their local butcher or trader?

I am no defender of this government, but the reality is that Fashola's announced tariff increases are probably less than what the gencos would charge if they were free to set their own prices. As long as prepaid meters are handed out as promised, people will have little justification for complaining. I personally would rather pay twice as much for a steady power supply that I can rely on than a "cheaper" service that comes and goes erratically.

..And shouldn't we have the "steady power supply FIRST".... to justify the incessant increases in tarrif?

Again, what has "dollar rate" got to do with the power tariff or is power "imported" from somewhere overseas, into Nigeria?
let me point out that power is generated majorly from GAS, which Nigeria has in abundant supply ... and the price, like that of crude, is falling drastically. So, its not even an imported product talk-less of "dollarising" it

Like any capitalist, GENCOS would like to increase tariff to a million Naira, if allowed since people have no choice in power supply but that does not make it right nor make the "small increase" welcome development.

These GENCOS bidded for, and warn the contract to supply power and l want to believe they did their homework before bidding.
All these noise about "not meeting production cost" is a farce and it is because those that make laws or are in a position to increase tariff, are the ssme "backyard" owners of the GENCOS.
They are just feeding their cash-cow from the pocket of the masses. Its called GRAND DECEPTION

If l can get that list of owners of each GENCO, l will past it here so you all see what l am talking about.

That wicked NERC Chairman, SAM AMADI, was used to do the "dirty job" even when he has only TWO DAYS left in office, he implemented this policy, despite the SENATE not approving it! He did not wait to ensure that Pre=Paid Meters were distributed in almost all homes FIRST, but was in a hurry to implement higher tariffs.
That is how wicked the ruling elites (Those with authority in Nigeria) are.



Lastpage!

chinchum:
20% increase for you, it could be 20% decrease for others or more. It is not simply black or white.

The fixed charge used to be n750/monthly, so if you use avg of n1,000 supply monthly 1.e a total of 1,750, you will now pay 1,450(45% increase over 1,000), you can see in that scenario, it is a reduction in power cost.
if ur monthly avg consumption costs is 1,500, before removal of service charge, you paid 2,250, now u will pay 2,225,i.e about the same price.

Shut the hell up.
You made an error in your second calculation Naughty Professor. It should be 2,175 and not 2,225

You are trying to deceive Nigerians by calculating with very low monthly charges in other to favour % 45 increase over #750 fixed charge.

Only charges below #1667 monthly supply is favourable to consumers when % 45 increase is applied.

Charges above #1667 monthly supply will make #750 fixed charge favourable to consumers compared to % 45 increase. Mind you majority of Nigerians consume far above the #1667 mark.

Example: If one consumes an avg. of N2000 monthly supply i.e total will be N2750 (fixed 750), but now we pay N2900 (% 45)

@ N5000/month i.e total is N5750, but now we pay N7250.
@ N10,000 /month i.e total is N10,750, but now we pay N14,500.

Now calm down and ask yourself, does it make sense to ban importation of small generator and increase electricity tariff without improving power generation and distribution?

omohayek:


There is no sane monetary policy on earth that could have defended the value of the Naira in the face of an oil price crash from $110 per barrel to $36. The only way to keep the old value without creating a black market like we have now would have been for the CBN to jack up interest rates to levels that would have destroyed every business with a loan in the country. The fact is that Nigeria is earning a lot less foreign income, and the purchasing power of the Naira must reflect that.

Naira has depreciated by over 70% since the fall of Crude oil. Saudia Arabia, Russia, Venezuela etc have not witnessed upto 5% depreciation of their currency since the drop of crude.

What is your Point?

Hmm increasing electricity tariff n reducing minimum wage. Dats wickedness of d highest quality

QuiverBox:


Naira has depreciated by over 70% since the fall of Crude oil. Saudia Arabia, Russia, Venezuela etc have not witnessed upto 5% depreciation of their currency since the drop of crude.

What is your Point?

Perhaps you should actually check your facts before making ridiculous statements like this. A cursory Google search would have been enough for you to know your claim is nonsense.

The Russian Rouble has nearly halved against the dollar in the same period.
http://www.xe.com/currencycharts/?from=RUB&to=USD&view=1Y

Saudi Arabia has gigantic foreign reserves it can use to defend the Riyal, but even so it has lost more than $90 billion doing so.
http://www.bloomberg.com/news/articles/2015-10-28/saudi-net-foreign-assets-drop-for-eighth-month-in-september

Venezuela is an economic basket case where people queue for toilet paper, and it is creeping towards bankruptcy:
http://www.bloomberg.com/news/articles/2015-10-19/venezuela-foreign-reserves-fall-to-12-year-low-as-payments-loom
http://dailysignal.com/2015/11/09/venezuelas-economic-crisis/
You actually managed to choose a country that makes Nigeria's condition seem like heaven by comparison!

Next time do some homework before disparaging anyone else's claims.

If you like increase the tarriff to #1000 per whatever unit u desire.

As long as my Fuelless Generator dey Tandagidigba, wetin concern me?

Copper wire, magnet, resin, iron fillings, iron rods, inverter, pvc pipe still dey available so to hell with PHCN.
Awon ode.

mideactive:
U'r only Wasting ur time,buhari won't giv u ppl bribe.NLC has lost it's integrity during d 2011 subsidy battle btwn d govt.n Nigerians.they're even makin matters worst by collectin bribe from state governors 2 avert worker strike.no one 'l ever take NLC seriously,in fact they are part of the corruption we want Buhari to help us crush..

I agree with you. NLC lost its integrity during that showdown. If they want to go on strike they should do that in their secretariats and not say it is for the interest of the masses. They don't have the interest of the masses at heart, only their selfish interests. And very likely, they are corrupt.

May God help this country

chinchum:
20% increase for you, it could be 20% decrease for others or more. It is not simply black or white.

The fixed charge used to be n750/monthly, so if you use avg of n1,000 supply monthly 1.e a total of 1,750, you will now pay 1,450(45% increase over 1,000), you can see in that scenario, it is a reduction in power cost.
if ur monthly avg consumption costs is 1,500, before removal of service charge, you paid 2,250, now u will pay 2,225,i.e about the same price.

No you're wrong.
Presently, N3000/month gives about 156kw at N13.30/kw and N750 fixed charge and 5% vat.

With the increase, IKEDC for example will have N8 increase per kw.

This will take it to N21.30/kw.
Now devide N3000 by N21.30 and you get less than 135kw including 5% vat.
Note, some states have increase as much as N13 added by kw.

Now do the maths. It's actually more than 20% increase in many states, I was just been conservative.

Dannyset:

Can you pls help us with the calculation?

Tho I knew it immediately it was said, that if the thing is properly calculated, we'll be at the losing end.

Please help if you can.

Presently, N3000/month gives about 156kw at N13.30/kw and N750 fixed charge and 5% vat.

With the increase, IKEDC for example will have N8 increase per kw.

This will take it to N21.30/kw.
Now devide N3000 by N21.30 and you get less than 135kw including 5% vat.
Note, some states have increase as much as N13 added by kw.

Now do the maths. It's actually more than 20% increase in many states, I was just been conservative.

iteleaye:






It is pure leather, and a little above 30k

wot!!!! Thats like the price of a set of brand new tyres! Bros, no woRry!!! na me Find trouble!

darlenese:
I support NLC
The removal of fixed charge is a scam, do ur calcation , its ,more expensive

The government never said it's intention was to reduce it.

Is it that NLC don't understand economics or they purposely blind themselves to the truth. Petrol prices are not crashing here because we do not operate a deregulated market system. If we had allowed delegation like ten years ago, it would be reasonable to expect the pump prices to be crashing.

Also prices 'may' increase locally because in as much as we are refining outside of the country, we will be billed in USD. With naira having devalued to 200 (official) it makes it more expensive locally. Assuming we were refining locally, the local price would be more inelastic to the exchange rate.

However having said that I belive we could potentially do away with subsidy even at N87 at current crude prices.

Also, while I agree that the minimum wage is too low at N18, we shouldn't necessarily tie it to the devaluation of the currency. First of all not every single thing we consume is imported. Secondly any serious importer should be passing his transactions through cbn and the rate there has been stable at 200 for awhile. It's usually those who are doing illicit business or who do not want to declare their goods, pay duties etc who insist on buying forex at the black market. You can't tell me Toyota is buying for ex at 280 to import their cars. Likewise Samsung or LG etc.

Some rough analysis:
Average US price per gallon is about $2 = N400. This equals about N100 per litre as a gallon contains roughly 4 liters. The US price is made up of about 20% taxes. So if we back that out it may come to about N80 per litre.

So mathematically we probably shouldn't be expecting it to come down much further. Only possibility is of we refine locally at high capacity utilisation, and we spend less transporting, distributing and marketing.