the last time tariff review was done was when the exchange rate for one United States dollar was about N190. But now, one dollar is close to N500; and the price of gas in the international market has gone up too.

malele:
Useless country

malele:
Useless country

989900D:


Exchange rate is king! Something needs to be done about it as quickly as possible, or else, commensurate salary increase, which at this time is both undo-able and economic suicide on the other hand.

abdrazak:

He also stated that one reason many Discos had
not metered their customers was due to the huge
debts owed them, as well as the tariff issue.

abdrazak:

“The books of the Discos are so bad that they have
no chance anymore to access finance. These
books do not reflect the cash flow that is
necessary for them to be taken seriously by any
lender.”

AZeD1:

This is a big lie. One of the most effective ways to collect tariff is via prepaid meters. The reason why customers have not been metered is because estimated billings favour the discos as they can charge for power not consumed.

Inspectahdeck:
Make them chop their power o.

Nigeria a country where it's citizens pay for nothing

These Crazy people (disco and genco etc.) will not plan on how to improve power instead we only hear of constant proposal to increase tariff.

abdrazak:

I presumed that if customers were billed according to their power consumption, there won't be any ranting as it is.

Someone was telling me that they were billed #5,495.65k for last month when they didn't even have light for a day.

Cancelling of estimated billing would have been the best then giving out prepaid to customers as substitute.

charliboy654
post=50441884:
Nigerians will be complaining and more than 50% of Nigerians don't pay light bill.

charliboy654:
Nigerians will be complaining and more than 50% of Nigerians don't pay light bill.

Ayoolla:
#105 per Kwh? I guess it's high time to go completely off grid. It will absolutely make more sense to generate your power and sell to other willing consumers at a competitive price- what a way to go!

EternalTruths:
Chaiiiiiii hope Afonjas are enjoying the change.

AZeD1:

This is a big lie. One of the most effective ways to collect tariff is via prepaid meters. The reason why customers have not been metered is because estimated billings favour the discos as they can charge for power not consumed.

AZeD1:

This is a fact but this is not a tariff issue but a management issue. Many of you guys didn't know what you were getting into. Y'all thought you were going to make a killing with little or no efforts.

ExInferis:


You've no idea what you're talking about. Estimated does not favor Discos because of too many problems inherent with estimating energy consumption. Wrong consumer classification, under billing, etc add up to the ATC&C losses especially when historically billed consumers are the ones less likely to pay (being postpaid) AFTER consumption of energy while the Disco still has to pay the MO for this consumed but unpaid energy. That's why sometimes the bills are crazy: other consumers bear the cost of the defaulting ones. And herein is catch 22: any consumer feeling over billed will refuse to pay, thus leading to loss of both revenues.

Metering is always preferred as it's prepay: your revenue comes BEFORE energy is consumed, and all consumers are placed on the proper tariff class.




Nope.

There is a great degree of material and data rot before the utilities were sold off to the Discos, and BPE gave the prospectors false data about the state of things.

Three of the most fundamental problems are:

1. The transmission network is a shoddy mess. And it's still owned by government wholly. System collapses are a daily occurrence. Also, TCN sends energy indiscriminately even into remote or commercially non viable areas where no revenue can be recovered commensurate with the value of energy sent. To the Discos this is a major loss point since energy is a commodity like any other commercial product. There are also so many technical losses on the network occasioned by poor equipment.

2. The customer data from NEBSA is fraudulently inaccurate and incomplete, meaning Discos have to plough resources into customer discovery and enumeration. While this is ongoing, millions of hidden customers are siphoning free energy for which Discos have to bear the financial burden.

3. The tariffs are not cost reflective. Whether post or pre paid, the average tariff under MYTO 2 does not cater for the cost of the industry even if consumers pay 100%. It costs money to buy gas, generate energy, transmit it, distribute it, and pay all costs in the energy value chain. And even without the spiking exchange rate the tariffs are a poor revenue mechanism anyway.

The BPE sold a turkey to the investors in its bid to rid itself of its albatross (fowl pun intended) NEPA, and lied and smoke screened to the buyers.

Now Nerc expects the investors to pump money into the system from funds pulled out of thin air when the losses are mounting.

Consumers expect 24hour electricity at cheap costs without a care to how much it takes to supply even an hour of energy.

Also, consumers are resistant to the doctrine that electricity is a commodity; they prefer to see it as government subsidized service to which they are entitled.

It always amuses me when someone would spend 20k on data and 10k on airtime, but wouldn't spend 2k on electricity.

And he'll want to charge his phone all the time.

AZeD1:

I don't know what you are on but if metering favoured the discos, they'll have metered consumers since

Also most of the owners didn't know what they were getting into, they just saw it as a way to make money without minding the technical challenges.

ExInferis:


Meters aren't free, are they? They're a substantial investment and no one is lending Discos any money while their revenue is shot to hell.

And when the meters are somehow acquired, they've to be discounted to near zero purchase for customers. It'd take some time to recoup the investment. And that's without taking into account energy theft through Meter bypass.

Metering is always the best for any utility company.


As for the claim that most of the investors didn't know what they were getting into...well that's true. But it's only on account of the misleading info the BPE sold the buyers. They were under sold on the technical challenges.

I'm an insider and I have investor friends.