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 if we refine locally at high capacity utilisation, and we spend less transporting, distributing and marketing.

feaworaoja007:
wot!!!! Thats like the price of a set of brand new tyres! Bros, no woRry!!! na me Find trouble!

Lol

Truthhurtss:

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?

calm the fugk down, i didnt deny that in some cases there would be an increase, so it is you that needs to shut up. I am very certain for the average nigerian using prepaid meter, with much emphasis on the average and prepaid meter , with the current level of power supply, the cost will be in the neighbourhood of N2,000. The problem is that without prepaid meters, the officials rip off and bring estimated bills not commensurate with the power consumption. Except your definition of majority of Nigerians are those with high power consuming appliances like Air conditioners, and lots of electronics. Nigerians do not conserve power usage at homes, once they are aware charges are estimated, what this means is that some will pay little or nothing for the power they use and some others will pay way higher than the power they use. Ask anyone using prepaid meters if they have to pay as much as N10,000 at their homes, even with high usage of electrical appliances they will tell you no. An argument was canvassed by the miniser of power that what would guarantee supply of gases to some of power plants is an increase in tarriff, so that distribution coys can service their debts to gencos, that is open to debate.

omohayek:


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.

its obvious you have no knowledge of what Foreign reserve means vs Value of a Currency against the dollar.

read my initial statement and I made mention of Naira vs dollar .

you are business quoting links without relevance.

Seems you are just a copy and paste person without assimilation of contribution made.

Before you embarrass yourself again, make sure you quote Russia, Saudia Arabia, Venezuela currency to the Dollar from The last 6 months and compare it to the Naira depreciation within the same period.

****Your parents were paying sch fees you were busy Wondering around

TechWalker007:


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.

No, you are not getting the point, the increase in tarriff for prepaid meter users does not necessarily mean they will now pay more, for some it might mean they will pay less now., and in some cases they will pay more. Anyone paying roughly 2,500 per month using prepaid metre in time past will still pay roughly the same with increase in tarriff , courtesy scrapping of service charges.

QuiverBox:


its obvious you have no knowledge of what Foreign reserve means vs Value of a Currency against the dollar.

And I'm supposed to be taking lessons from a semi-literate like you?

QuiverBox:

read my initial statement and I made mention of Naira vs dollar .

you are business quoting links without relevance.

Seems you are just a copy and paste person without assimilation of contribution made.

I actually brought statistics and references to the table: where are yours, oh wise one?

QuiverBox:

Before you embarrass yourself again, make sure you quote Russia, Saudia Arabia, Venezuela currency to the Dollar from The last 6 months and compare it to the Naira depreciation within the same period.

If you weren't an idiot, you could easily have done this very thing, using the links I already provided. Again, where are your links? Where are your numbers?

QuiverBox:

****Your parents were paying sch fees you were busy Wondering around

Your last sentence shows you up for exactly what you are: a foul-mouthed semi-literate with a total ignorance of economics and finance, who can think of no better way to rebut anything that counters his uninformed opinions than by throwing insults. I'll respond to you in language you can understand: go f*ck yourself, you worthless waste of seminal fluid.

kolnel:
The abolition of fixed charges makes it desirable
Or how do you describe paying 750 mandatory on an imaginary light every month
Nlc should fight a better fight

Well on point bro. The congress leadership seems lost in the happenings around the power sector. People-oriented labour union would have relentlessly agitated for the removal of that "fixed charge". Instead they allowed politics to becloud their primary purpose of existence. Integrity and dialogue are hallmarks of labour unionism. NLC should pls rebrand to march current dispensation. Events in their last leadership elections are still fresh on the minds of many Nigerians.

When ignorant people go into an intelligent discussion that is above their comprehension they begin to insult and use swearing words.

I Understand your predicament.

Endure you read hard and educate yourself the next time ur parents give you the opportunity.

omohayek:


And I'm supposed to be taking lessons from a semi-literate like you?



I actually brought statistics and references to the table: where are yours, oh wise one?



If you weren't an idiot, you could easily have done this very thing, using the links I already provided. Again, where are your links? Where are your numbers?



Your last sentence shows you up for exactly what you are: a foul-mouthed semi-literate with a total ignorance of economics and finance, who can think of no better way to rebut anything that counters his uninformed opinions than by throwing insults. I'll respond to you in language you can understand: go f*ck yourself, you worthless waste of seminal fluid.

When ignorant people go into an intelligent discussion that is above their comprehension they begin to insult and use swearing words.

I Understand your predicament.

Endure you read hard and educate yourself the next time ur parents give you the opportunity.

omohayek:


And I'm supposed to be taking lessons from a semi-literate like you?



I actually brought statistics and references to the table: where are yours, oh wise one?



If you weren't an idiot, you could easily have done this very thing, using the links I already provided. Again, where are your links? Where are your numbers?



Your last sentence shows you up for exactly what you are: a foul-mouthed semi-literate with a total ignorance of economics and finance, who can think of no better way to rebut anything that counters his uninformed opinions than by throwing insults. I'll respond to you in language you can understand: go f*ck yourself, you worthless waste of seminal fluid.

COMPAQ:



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

OK, the government told u their intension is to increase it, and cause hardship right ?

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..

GBAM!

darlenese:


OK, the government told u their intension is to increase it, and cause hardship right ?

To the best of my knowledge, the government didn't say that too!

But all I know is that they are trying to be professional by charging a market rate. Otherwise the privatisation is a bloody waste of time. I personally don't like things getting more expensive....who does? But as a proper student of economics, I can totally see the rationale. As my dad once said don't pray for prices of things to come down, pray that you can continue to afford it even as they go up.

COMPAQ:


To the best of my knowledge, the government didn't say that too!

But all I know is that they are trying to be professional by charging a market rate. Otherwise the privatisation is a bloody waste of time. I personally don't like things getting more expensive....who does? But as a proper student of economics, I can totally see the rationale. As my dad once said don't pray for prices of things to come down, pray that you can continue to afford it even as they go up.

Ur dad is absolutely right , and I totally buy it

chinchum:
No, you are not getting the point, the increase in tarriff for prepaid meter users does not necessarily mean they will now pay more, for some it might mean they will pay less now., and in some cases they will pay more. Anyone paying roughly 2,500 per month using prepaid metre in time past will still pay roughly the same with increase in tarriff , courtesy scrapping of service charges.

My friend, stop preaching to the Pope.
I just showed you an actual case study and you're still talking gibberish.

darlenese:


OK, the government told u their intension is to increase it, and cause hardship right ?

Follow Fashola’s legacy and you'll know it's in line with his personal beliefs.
I live in Lagos and have experienced it for years.
Wait a while, it will also get to housing and works.
Watch out for Land use charges and tolls on highways.

A Toothless bulldig

TechWalker007:


My friend, stop preaching to the Pope.
I just showed you an actual case study and you're still talking gibberish.

I thought i was conversing with someone intelligent. Your daft case study is not absolute, it is subject to variables.

chinchum:
I thought i was conversing with someone intelligent. Your daft case study is not absolute, it is subject to variables.

The problem with your likes is that you are smart in your own foolishness.

The example I gave is an actual spend from a prepaid meter. And it was just one of many cases of different people from a survey.

With the new tariff, the only people who will pay less are people who don't have electricity daily. For areas with average to good supply, your bill will go up by 15% and above.
Don't dispute facts except you have facts and figures to support your position.

TechWalker007:


The problem with your likes is that you are smart in your own foolishness.

The example I gave is an actual spend from a prepaid meter. And it was just one of many cases of different people from a survey.

With the new tariff, the only people who will pay less are people who don't have electricity daily. For areas with average to good supply, your bill will go up by 15% and above.
Don't dispute facts except you have facts and figures to support your position.

It is either you suck at comprehension or you are a bad maths student, you claimed you did a survey , what was the survey population?

This is a testimony of a ppm user on page 1 of this thread

rabzy01:
I use PPM and I know how terrible that fixed charge is.
Take it from me, NLC has nothing to fight here. In fact abolishing the fixed charge makes this increment a blessing on a lot of people. Do your calculations and you will realize that instead of increase in cost you will actually get savings in the cost of electricity depending on your consumption.

As for power supply, I put it to you, that this year is the best in my area.

A 45% increase in tarriff + service charge removal on PPM will shoot up the cost of electricity for some, but it will also lower the cost for others, i dont claim to have clear data, but due to the relatively low supply of power, i can bet the number of beneficiaries who will pay less due to new tarriff policy will outnumber the once who will now pay more. For those who have good power supply who you claim will now pay more 15+%, is that not a better option to powerimg generators with petrol/diesel at exhorbitant cost ?. Dont be penny wise, pound foolish.

chinchum:
It is either you suck at comprehension or you are a bad maths student, you claimed you did a survey , what was the survey population?

This is a testimony of a ppm user on page 1 of this thread



A 45% increase in tarriff + service charge removal on PPM will shoot up the cost of electricity for some, but it will also lower the cost for others, i dont claim to have clear data, but due to the relatively low supply of power, i can bet the number of beneficiaries who will pay less due to new tarriff policy will outnumber the once who will now pay more. For those who have good power supply who you claim will now pay more 15+%, is that not a better option to powerimg generators with petrol/diesel at exhorbitant cost ?. Dont be penny wise, pound foolish.

You referred me to someone who also don't have figures?
With the fixed charge and average to good supply you'll still pay at least 15% less than what you'll pay with the new tariff. The "removal of fixed charge" is actually a disguise to increase tariff.
Do you know what 15% increase would be for a company that pay tens of millions in electricity yearly?

Do you even know how much a KW of electricity is across states and/or regions? Or how much VAT is paid?

I don't have enough time to teach you. Stay with your "knowledge"

TechWalker007:


You referred me to someone who also don't have figures?
With the fixed charge and average to good supply you'll still pay at least 15% less than what you'll pay with the new tariff.
Do you even know how much a KW of electricity is across states and/or regions? Or how much VAT is paid?

I don't have enough time to teach you. Stay with your "knowledge"

Oh my goodness, you are proving you suck at maths, i dont need to know how much a kw costs across states, the variable is a 45% increase on the previuos tariff cost . VAT is a constant =5%, or has it being increased too. If you suck at maths, confess to me, i will guide you.

Do you know what 15% increase would be for a company that pay tens of millions in electricity yearly?

The tarriff was canvassed to guarantee improved supply, should power supply improve drastically to the coy, it will end up as a blessing, as they coy will now cut off heavy bills on diesel /petrol + maintenance costs on heavy duty generator.

TechWalker007:


Follow Fashola’s legacy and you'll know it's in line with his personal beliefs.
I live in Lagos and have experienced it for years.
Wait a while, it will also get to housing and works.
Watch out for Land use charges and tolls on highways.

Hmmmn
May God help us!

chinchum:


Oh my goodness, you are proving you suck at maths, i dont need to know how much a kw costs across states, the variable is a 45% increase on the previuos tariff cost . VAT is a constant =5%, or has it being increased too. If you suck at maths, confess to me, i will guide you.

You see why it's terrible to assume you are smart and then let out your ignorance?
The rate is not the same across states and hence the 45% you mention is something you pulled from your false knowledge (ignorance actually)
IKEDC for example had 60.15% increase. Different from Eko Distribution Company.
That's how it varies across states and DISCOS.

Go get educated before coming to argue what you don't know.

chinchum:


... canvassed to guarantee improved supply, should power supply improve drastically to the coy, it will end up as a blessing, as they coy will now cut off heavy bills on diesel /petrol + maintenance costs on heavy duty generator.

This is by far the most ignorant of all your submissions.
Since when does increased tariff guarantee improved supply? You think it's tomatoes?
You don't know infrastructure will have to be built to increase power generation. Do you even have the slightest understanding of IPPs, I think I've been wasting my precious time.
Do have a good day!

TechWalker007:


You see why it's terrible to assume you are smart and then let out your ignorance?
The rate is not the same across states and hence the 45% you mention is something you pulled from your false knowledge (ignorance actually)
IKEDC for example had 60.15% increase. Different from Eko Distribution Company.
That's how it varies across states and DISCOS.

Go get educated before coming to argue what you don't know.

You wont give up, will you? my first response to you today is that your daft case study is not absolute, it is subject to variables. The average tarriff increase is 45%, Even the body of the op made mention of the 45%. Does Nigeria starts and end in Ikeja distribution company? Even service charge for customers varies, for some it is 700, 750, even 800., but the average is 750.

TechWalker007:


This is by far the most ignorant of all your submissions.
Since when does increased tariff guarantee improved supply? You think it's tomatoes?
You don't know infrastructure will have to be built to increase power generation. Do you even have the slightest understanding of IPPs, I think I've been wasting my precious time.
Do have a good day!

Tarriff is the cost it takes to produce power along all the chains to the end user., if the cost is not good enough for investors to invest in the production chain, how can you guarantee improvd supply? Do you have the global price/tarriff to consumers /kwh to benchmark? I have said it earlier, we cant afford to be penny wise and pound foolish. The Same Nigerian resisting to pay extra 2,000 /month for good supply will then be spending 500 daily to power gensets, does that make sense

chinchum:
Tarriff is the cost it takes to produce power along all the chains to the end user., if the cost is not good enough for investors to invest in the production chain, how can you guarantee improvd supply? Do you have the global price/tarriff to consumers /kwh to benchmark? I have said it earlier, we cant afford to be penny wise and pound foolish. The Same Nigerian resisting to pay extra 2,000 /month for good supply will then be spending 500 daily to power gensets, does that make sense

When you lack knowledge, the humble and smart thing to do is to ask, not expose your ignorance.
Increase tariff will not increase the electricity generated beyond the capacity it can generate.
The past admin built over 10 IPPs, investors are glad to still invest. We don't have a problem of investors not wanting to come in. China, General Electric and other mega investors are all in. So shove that naive excuse of bringing in investors.

It's because of blind followers like you they'll succeed in implementing tolls on roads and force land use charge like the other theif in Edo State is doing. And you will stupidly give excuse for them and explain why it's a good thing.

In your small mind, once we start paying extra N2000 power generation will jump from 3000MW to 20000MW and we won't need to use generators anymore. I don't know if you're stupid, blind, ignorant, zombie or all.
Wait till 2016 when you or your family starts spending half their earnings on extra bills for the same service they were getting. It's already happening with fuel.

TechWalker007:


When you lack knowledge, the humble and smart thing to do is to ask, not expose your ignorance.
Increase tariff will not increase the electricity generated beyond the capacity it can generate.
The past admin built over 10 IPPs, investors are glad to still invest. We don't have a problem of investors not wanting to come in. China, General Electric and other mega investors are all in. So shove that naive excuse of bringing in investors.

It's because of blind followers like you they'll succeed in implementing tolls on roads and force land use charge like the other theif in Edo State is doing. And you will stupidly give excuse for them and explain why it's a good thing.

In your small mind, once we start paying extra N2000 power generation will jump from 3000MW to 20000MW and we won't need to use generators anymore. I don't know if you're stupid, blind, ignorant, zombie or all.
Wait till 2016 when you or your family starts spending half their earnings on extra bills for the same service they were getting. It's already happening with fuel.

As to the boldened, maybe this can educate you.

http://businessdayonline.com/2015/12/cost-reflective-tariffs-top-barriers-to-large-scale-investment-in-nigerias-power-sector-pwc-2/

[size=15pt]Cost-reflective tariffs top barriers to large-scale investment in Nigeria’s power sector – PwC[/size]

Failure to implement cost-reflective tariffs tops the list of barriers militating against large-scale investment in Nigeria’s power sector. In addition, the overall difficulty of raising finance, which in part, arises from failure to implement cost-reflective tariff, according to PriceWaterCoopers (PwC) Africa Power and Utilities Sector survey released yesterday in Lagos. About 83 percent of the…

chinchum:
As to the boldened, maybe this can educate you.

http://businessdayonline.com/2015/12/cost-reflective-tariffs-top-barriers-to-large-scale-investment-in-nigerias-power-sector-pwc-2/

Go and read..
http://venturesafrica.com/nigeria-ge-flags-off-1-billion-manufacturing-facility/

http://www.vanguardngr.com/2014/02/nigeria-general-electric-sign-350m-mou-power-plants-small-communities/

http://mobile.reuters.com/article/idUSBRE98S0AG20130929

The biggest deal China ever had with any African country is with Nigeria and it's for power - a whooping $12b
http://sweetcrudereports.com/2015/07/19/chinese-grid-company-to-invest-12bn-for-electricity-transmission-projects-in-nigeria/


Now, your naive mind has concluded that cost-reflective tariff must mean Increasing tariff?
No it's not. It simply means appropriate tariffing. Hence the need for prepaid meter. In case you don't know, a larger percentage of Nigerians still use postpaid meter which is mostly fixed. This will not reflect usage.
They use more and still pay the same fixed bill.
So the solution to cost-reflective tariff is the use of prepaid meter which applies proper tariffing across board but not necessarily increase in tariff.
The biggest lost of revenue is as a result of people who pay fixed bills or don't pay at all because they don't even have meters.
I repeat, it doesn't mean INCREASED TARIFF.
Stop defending anti-people policies in the name of blind support.

TechWalker007:

Go and read..
http://venturesafrica.com/nigeria-ge-flags-off-1-billion-manufacturing-facility/

http://www.vanguardngr.com/2014/02/nigeria-general-electric-sign-350m-mou-power-plants-small-communities/

http://mobile.reuters.com/article/idUSBRE98S0AG20130929

The biggest deal China ever had with any African country is with Nigeria and it's for power - a whooping $12b
http://sweetcrudereports.com/2015/07/19/chinese-grid-company-to-invest-12bn-for-electricity-transmission-projects-in-nigeria/


Now, your naive mind has concluded that cost-reflective tariff must mean Increasing tariff?
No it's not. It simply means appropriate tariffing. Hence the need for prepaid meter. In case you don't know, a larger percentage of Nigerians still use postpaid meter which is mostly fixed. This will not reflect usage.
They use more and still pay the same fixed bill.
So the solution to cost-reflective tariff is the use of prepaid meter which applies proper tariffing across board but not necessarily increase in tariff.
The biggest lost of revenue is as a result of people who pay fixed bills or don't pay at all because they don't even have meters.
I repeat, it doesn't mean INCREASED TARIFF.
Stop defending anti-people policies in the name of blind support.

I know you wont give up. you are justifying your points with mous that might not see the light of the day, Nigeria also have several mous on construction of refineries., where are the refineries now??

Cost reflective tarriff means the right value for utility supplied, i earlier asked you if you have global benchmarks of tarriffs, but you have choosen to keep blowing hot air. Is the currently approved tarriff far off the average standards /benchmark ? Dont bother replying me if you can not prove that the tarriffs are above average.

chinchum:
I know you wont give up. you are justifying your points with mous that might not see the light of the day, Nigeria also have several mous on construction of refineries., where are the refineries now??

Cost reflective tarriff means the right value for utility supplied, i earlier asked you if you have global benchmarks of tarriffs, but you have choosen to keep blowing hot air. Is the currently approved tarriff far off the average standards /benchmark ? Dont bother replying me if you can not prove that the tarriffs are above average.

MOUs that have since been implemented or in the process and many already functional, and this one is here talking on things he doesn't know. Go find out how 11 IPPs were built. And please don't quote me again. I've given you enough education for free.