TheFacelessMan:


The tiered system is an excellent one... but I am not sure Nigeria is ripe for it yet.

People will seek ways to bypass or tamper with meters to fall into lower tiers.

What I think needs to be done is ensure EVERYONE utilising electricity pays. When incomes rise, then you can start thinking of tiering.

See, it is an open secret that some just blatantly refuse to pay despite enjoying light. Let's get them to stay paying for it and revenues will rise.

I don't think it can make the issue of bypass any worse than it currently is. Current levels of electricity theft is very high.

But i agree that everyone needs to pay for what they use now. I often wonder how hard it is. If it were me in charge of say EKEDC, I'd ensure that house is mapped to their meter number and location identified on google maps. After that, its a simple case of running a program to see which meters havent been recharged in a while. Those are clear candidates to be checked for byepass.

And then have teams monitoring those who have tapped electricity directly with no meter at all, like barbers, welders, batcha folks etc The teams should go around with heavy assortment of police,, knowing fully well that people get violent when you try to cut their light.

And lastly, those caught either tapping light illegally or by passing their meters should be charged to court and fined.

Honoredeblazac:
Government should removed their hands from electricity Kpata Kpata so that private peope will develop and run these things and charge the people what they want.

Those Igbo men running fidelity can really turn the place around if they are left to do what they need to do without tribalism.

will you agree to be paying soo much for electricity the way you pay soo much for fuel?

nairalanda1:
This is what happens when government controls prices and pays and subsidy. Debt results

Says so in the article. Sub economic tarrifs. That means that government forces the discos to charge prices below the production cost, which in turn forces them to operate at a loss.

And then they find it difficult to pay loans , hence the lender taking over.

But because of sub economic tarrifs, the companies cannot make a profit. So despite the new management, the companies lose money


Moral of the story is electricity is not cheap. It has to be priced appropriately to make a profit.

You are preaching to the gallery , an average Nigerian believes fuel and light should be free , and we have some diabolic politicians who keep feeding the narrative that govt can pay for everything, the greatest error Gej made was the electricity privatisation, it can't work the way it was setup .

nairalanda1:


Government already subsidies power. Severely even.

Hence all the discos losing money

Plus,paying for a subsidy means money has to be raised for it. And with our very low tax to gdp ratio, that won't be possible

I know u would be here, You are like the default defender of the political elites & government in Nigeria especially when it comes to providing for the masses!

You always want ur political godfathers to enjoy the largase of office & tax payers money while Nigerians work like slaves to sponsor them.


Anything subsidy that would benefit the ordinary Nigerian & reduce d enjoyment of ur political bosses is a no to you.


You want Nigerians to pay bills like developed countries without subsidy....THEN TELL UR godfathers TO PAY NIGERIANS ACCORDING TO INTERNATIONAL STANDARD

treesun:
https://dailytrust.com/fg-to-sell-kaduna-electric-over-n110bn-debt/

This is the beauty of privatisation and capitalism- it’s either you sail or you sink. Unlike communism and socialism that gives bottomless subsidies to government owned businesses.

When will my people be wise enough to reject communism and socialism that is wrapped up in fake progressive robes

When are they going to sell BEDC?

treesun:



https://dailytrust.com/fg-to-sell-kaduna-electric-over-n110bn-debt/

Since they would keep hoarding prepaid meters, how will they be profitable?

Elsueno:


I know u would be here, You are like the default defender of the political elites & government in Nigeria especially when it comes to providing for the masses!

You always want ur political godfathers to enjoy the largase of office & tax payers money while Nigerians work like slaves to sponsor them.


Anything subsidy that would benefit the ordinary Nigerian & reduce d enjoyment of ur political bosses is a no to you.


You want Nigerians to pay bills like developed countries without subsidy....THEN TELL UR godfathers TO PAY NIGERIANS ACCORDING TO INTERNATIONAL STANDARD

So, set up a business, and sell your goods at low prices to help the poor then.

It is also amusing that saying that power companies should be free to set their prices, the same way GSM companies, foodstuff sellers and so forth are free to set their prices means i

1.Support government

2.Work for some god fathers.

That is very strange thinking from you.

As for me, no matter what you think of me, if a company cannot make a profit, it cannot do business. It cannot pay suppliers, cannot pay taxes, cannot even pay workers global standard salaries.

SO HOW IS CALLING FOR A COMPANY TO HAVE THE RIGHT TO MAKE A PROFIT supporting government and rich people.

Mass subsidies has been tried before in communist countries. They all collapsed economically.

The mess we have is the result of politicans sacrificing economic sense to earn votes. How is my opposing it then mean that I support them politicans.

LOL.

MasterJayJay:

Your agenda still never change.
Do you know that Nigerians pay for blackout?
Give every customer a prepaid meter.
Is data cheap? But Nigerians are paying for internet data.

Even if we give every Nigerian a prepaid meter, and they did not bypass the meter, so long as government forces the price of electricity below what it costs to produce it, it won't change anything.

This type of business na bad one for Aboki region

Aboki no dy pay nepa Bills, Dem no dy use prepaid meter

So, how business wan take survive... Even their government offices, institutions dy owe billions in Naira

Aboki, change your ways abeg, support struggling business especially this Disco people

Discos in SS and SW especially Lagos are flourishing na cos the people in that region are enlightened and know what to do

nairalanda1:
This is what happens when government controls prices and pays and subsidy. Debt results

Says so in the article. Sub economic tarrifs. That means that government forces the discos to charge prices below the production cost, which in turn forces them to operate at a loss.

And then they find it difficult to pay loans , hence the lender taking over.

But because of sub economic tarrifs, the companies cannot make a profit. So despite the new management, the companies lose money


Moral of the story is electricity is not cheap. It has to be priced appropriately to make a profit.

Oga, don't blame them.Kaduna people don't pay for electricity.go and check all their prepaid meters.na bye-pass.

lolu2019:
Oga, don't blame them.Kaduna people don't pay for electricity.go and check all their prepaid meters.na bye-pass.

Nawaoo, all this Aboki sha

And their government do nothing about it but they can intercept truckloads of beers and destroy

eteebanky1:


Nawaoo, all this Aboki sha

And their government do nothing about it but they can intercept truckloads of beers and destroy

not only the aboki's there.both the Igbo and Yoruba that are living there are also included.

Elsueno:


I know u would be here, You are like the default defender of the political elites & government in Nigeria especially when it comes to providing for the masses!

You always want ur political godfathers to enjoy the largase of office & tax payers money while Nigerians work like slaves to sponsor them.


Anything subsidy that would benefit the ordinary Nigerian & reduce d enjoyment of ur political bosses is a no to you.


You want Nigerians to pay bills like developed countries without subsidy....THEN TELL UR godfathers TO PAY NIGERIANS ACCORDING TO INTERNATIONAL STANDARD

Oga, I am quoting you again, because I don't really get your reasoning.

The problem with your reasoning is that

1.You don't know the issues with the power sector. The power sector is under a subsidy. Your power is subsidised. But this means in practice companies make too low a profit to break even, and cost of production are always rising...meaning a subsidy that covers well this year may not cover well this year.

Remember the value of naira has fallen.

2.Because discos cannot make profit, they cannot pay GENCOS well. As a reuslt, they have to reject power, otherwise they would be in even worse debts.

3.Subsides lend themselves to corruption. You know that they are budgeted for , and the problem is, the amount may rise during the year.

4.At the end, this causes a deficit, which causes problem.

Oga, I don't support government. I never voted for APC. I work for no effing politican, so I don't know where you get your thinking from. But HOW COME GSM works well nationwide? Because at the end, GSM companies can set their prices how they want. DISCOS cannot. And phones are expensive, and phone services cost money well well , just like power.


What even annoys me is that you think I am working for government. You don't know the half of how I came across my thoughts. It took me several years of reading and studying, and thinking before I came to the conclusions I came.


Oga, just because I disagree with you on subsidy does not mean I hate the poor or support government. At the end of the day, Nigeria is a poor nation. Yet GSM companies work well despite charging to make a profit, and DISCOS don't despite charging to help the poor.

Don't abuse me again. Not everyone that does not think as you do works for government. Haba.

lolu2019:
Oga, don't blame them.Kaduna people don't pay for electricity.go and check all their prepaid meters.na bye-pass.

Bye passing is a part of the problem...though I don't think they all bypass the meter, otherwise KEDC would have collapsed since 2017...but yeah, it is a big issue.

Stevengold:
one of the importance of taking over a company like this is to rigorously drive revenue, the company didn't do well. When Port Harcourt Electricity Distribution Plc started, people hated then cuz they made sure all efforts was thrown at generating revenue and protecting it, PHED stands out as one of the best Electricity company in Nigeria today.

A company that generates 6billiom monthly as KEDC should be able to clear its debt in 3 years max.

You want to drive up electricity revenues in the North on a service that the people there still view as government largesse? Ask the bolting investors and workmen on ground to recount their ordeals.

mastermaestro:


You want to drive up electricity revenues in the North on a service that the people there still view as government largesse? Ask the bolting investors and workmen on ground to recount their ordeals.

Then they cut power to those who are not willing to pay.

Most Nigerians, not just Northerners, see power as government largesse. They haven't accepted the reality of privatization and matters are made worse by government setting prices, giving the impression of government still being in charge.

nairalanda1:
This is what happens when government controls prices and pays and subsidy. Debt results

Says so in the article. Sub economic tarrifs. That means that government forces the discos to charge prices below the production cost, which in turn forces them to operate at a loss.

And then they find it difficult to pay loans , hence the lender taking over.

But because of sub economic tarrifs, the companies cannot make a profit. So despite the new management, the companies lose money


Moral of the story is electricity is not cheap. It has to be priced appropriately to make a profit.

even when u don't get to see the light??


Government have always being making life difficult for the masses. So how do they expect them to pay such heavy tariffs.



It the FG's fault

aceman88:
The irony is that, over there, the monthly electricity bill is strange to most of the locals, almost non existent, they believe it is the duty of government to pay for their basic utilities, and this is a region that enjoys nearly 24 hours power supply everyday; whereas, most households in the southern region pay between 5k to 10k monthly for electricity bill and most of the places don't enjoy up to 5 hours of electricity supply everyday. Nigeria is such an irony.

bros most areas even pay up to 25k estimated billing

Fidelity Bank top over Kaduna Electric Distribution Company. Kaduna Electric Distribution Company is now in debt. Peter Obituary is the majority shareholder of Fidelity Bank. That's the idiot that wants to run Nigeria

adesegun121:
Imagine

110billion debt

By Peter Obituary's company

U09ce:
I was told that the only viable discos are Eko and Ikeja. Even Abuja disco is struggling - due to the neighboring franchise states (Niger, Kogi and Nassarawa). The privatisation of PHCN was ill thought and badly implemented. The power sector is unlike telecommunications where strong competition entrenched fairer prices. The value chain for power sector is longer--the gas supply part of it is dollar dependent. Thus, it's prone to several vagaries.
The minimum wage for workers is currently a measly 30k. The average take home of Nigerian families is probably less than 50k monthly. A KWh of electricity is now at least 60 Naira. A modest house spends up to 20k per month for 15 hours of electricity. How do you expect such a family living in penury to pay the power costs?
The government needs to get a viable solution to this mess

my point Exactly

khattab02:
even when u don't get to see the light??


Government have always being making life difficult for the masses. So how do they expect them to pay such heavy tariffs.



It the FG's fault

Well, the problem is the government has been charging low prices for power. This means that the power sector does not make enough money to pay for improvements that would guarantee 24/7 power. This has happened even AFTER privatisation.

Add the fact that 40% of Nigerians do not pay for power nationwide (higher in some localites)...and that is why you don't have power.

Government mistake is that they control prices, and the subsidy they pay does not adequately cover losses. Here we are.



Now see GSM. Obasanjo let them set their prices. Phones were so expensive then, only the very rich could afford one line. But they earned enough money to build things up, expand services, and bring down prices.


Oga, when you are running a business and you are allowed to set prices, services improve, not degenerate. Wonder why coca cola is available everywhere.? Because they can set prices as they like. Profits reuslt...improved service.

nairalanda1:



Oga, I am quoting you again, because I don't really get your reasoning.

The problem with your reasoning is that

1.You don't know the issues with the power sector. The power sector is under a subsidy. Your power is subsidised. But this means in practice companies make too low a profit to break even, and cost of production are always rising...meaning a subsidy that covers well this year may not cover well this year.

Remember the value of naira has fallen.

2.Because discos cannot make profit, they cannot pay GENCOS well. As a reuslt, they have to reject power, otherwise they would be in even worse debts.

3.Subsides lend themselves to corruption. You know that they are budgeted for , and the problem is, the amount may rise during the year.

4.At the end, this causes a deficit, which causes problem.

Oga, I don't support government. I never voted for APC. I work for no effing politican, so I don't know where you get your thinking from. But HOW COME GSM works well nationwide? Because at the end, GSM companies can set their prices how they want. DISCOS cannot. And phones are expensive, and phone services cost money well well , just like power.


What even annoys me is that you think I am working for government. You don't know the half of how I came across my thoughts. It took me several years of reading and studying, and thinking before I came to the conclusions I came.


Oga, just because I disagree with you on subsidy does not mean I hate the poor or support government. At the end of the day, Nigeria is a poor nation. Yet GSM companies work well despite charging to make a profit, and DISCOS don't despite charging to help the poor.

Don't abuse me again. Not everyone that does not think as you do works for government. Haba.

I agree with you 💯 from points 1 to 4.

But my brother, U do support the government & elites, any time subsidy talk of any type comes, You always blame the average Nigerian

On the bolded, Nigeria is not a poor per say( we buy luxury SUVs 4 almost 400 law makers who earn about 25 million a month, 5bn yatch 4 president, 20b renovation etc), its just govern by incompetent people who want the 'poor citizens' to pay bills by international standards while d minimum wage per MONTH IS around $30, even at that, a large chunk of the population dont earn that amount

In case of by-pass, isn't it done by same electricity workers? Isn't SAME ELECTRICITY WORKERS THAT FRUSTRATE YOU WHEN YOU WANT TO GET A METER, till u give up sometimes.

Average Nigerians have thier own problems, but as long as you as a business entity don't compromise..Nigerians would also fall in line. Thats just the case for GSM

nairalanda1:


Well, the problem is the government has been charging low prices for power. This means that the power sector does not make enough money to pay for improvements that would guarantee 24/7 power. This has happened even AFTER privatisation.

Add the fact that 40% of Nigerians do not pay for power nationwide (higher in some localites)...and that is why you don't have power.

Government mistake is that they control prices, and the subsidy they pay does not adequately cover losses. Here we are.



Now see GSM. Obasanjo let them set their prices. Phones were so expensive then, only the very rich could afford one line. But they earned enough money to build things up, expand services, and bring down prices.


Oga, when you are running a business and you are allowed to set prices, services improve, not degenerate. Wonder why coca cola is available everywhere.? Because they can set prices as they like. Profits reuslt...improved service.

yeah. The real problem is the standard of living of Nigerians. Government have to try and improve that.


And also improve the services of power. All these talks of Grid collapsing is nonsense

Elsueno:


I agree with you 💯 from points 1 to 4.

Okay

But my brother, U do support the government & elites, any time subsidy talk of any type comes, You always blame the average Nigerian

LOL...I am not blaming the average Nigerian. It is you who thinks so. I am just stating that for a business to work, it has to earn a profit. Subsides don't help that thing.

On the bolded, Nigeria is not a poor per say( we buy luxury SUVs 4 almost 400 law makers who earn about 25 million a month, 5bn yatch 4 president, 20b renovation etc), its just govern by incompetent people who want the 'poor citizens' to pay bills by international standards while d minimum wage per MONTH IS around $30, even at that, a large chunk of the population dont earn that amount

Yes, and it is wrong, and I don't support it, and it should not happen.

But the amount we spent on SUV cannot pay for petrol subsides in one month, or even two weeks. Ditto power.

Again, that i support subsidy removal does not mean I think that government is right to spend money on SUV or whatever. Thinking i support that is a strawman, and a flimsy one at best.

In case of by-pass, isn't it done by same electricity workers? Isn't SAME ELECTRICITY WORKERS THAT FRUSTRATE YOU WHEN YOU WANT TO GET A METER, till u give up sometimes.

Yeah, and they are wrong. That they do not give meter is also wrong. But the abuses are happening because they cannot make a profit in the business.

Bring in subsides, and at the end of the day, there would be abuses like the above, because at the end the companies are losing money.

Do GSM companies do something similar? No...because they can charge their money, and make profits to make service better.

Average Nigerians have thier own problems, but as long as you as a business entity don't compromise..Nigerians would also fall in line. Thats just the case for GSM

[/quote]

Don't compromise, and at the end of the day, free companies to set their prices. Government cannot force them to operate at a loss. After all salaries, taxes, suppliers, etc must be paid, and since 2013, government does not spend a dime on discos and gencos.

khattab02:
yeah. The real problem is the standard of living of Nigerians. Government have to try and improve that.

As one other nairalander once said, we really cannot afford to pay for power at market price. Nigeria has a large poor population.

But at the end, when government was running the power sector, at a point, the population grew beyond our ability to pay for it. That is where DIVERSIFYING THE ECONOMY, and widening the tax net comes it.

And also improve the services of power. All these talks of Grid collapsing is nonsense

TCN relies on the revenue discos raise. And as you know, discos are undercharging for power on government orders. TCN , despite being a government entity does not have the cash to pay for improvements. (yes, SIEMENS is currently improving the transmission carrying capacity of our grid...).

nairalanda1:


As one other nairalander once said, we really cannot afford to pay for power at market price. Nigeria has a large poor population.

But at the end, when government was running the power sector, at a point, the population grew beyond our ability to pay for it. That is where DIVERSIFYING THE ECONOMY, and widening the tax net comes it.




TCN relies on the revenue discos raise. And as you know, discos are undercharging for power on government orders. TCN , despite being a government entity does not have the cash to pay for improvements. (yes, SIEMENS is currently improving the transmission carrying capacity of our grid...).

And the FG owns TCN 100%. We learnt TCN does not have the capacity to hold what Gencos produces

Sell to an American company or the Chinese

nairalanda1:
This is what happens when government controls prices and pays and subsidy. Debt results

Says so in the article. Sub economic tarrifs. That means that government forces the discos to charge prices below the production cost, which in turn forces them to operate at a loss.

And then they find it difficult to pay loans , hence the lender taking over.

But because of sub economic tarrifs, the companies cannot make a profit. So despite the new management, the companies lose money


Moral of the story is electricity is not cheap. It has to be priced appropriately to make a profit.

The major problem is endemic poverty in that region. The electricity users there are either unable or unwilling to pay their bills. The way out is to enforce use of prepaid meters otherwise, any company that buys KEDC will also go bankrupt.

MrEverest:


The major problem is endemic poverty in that region. The electricity users there are either unable or unwilling to pay their bills. The way out is to enforce use of prepaid meters otherwise, any company that buys KEDC will also go bankrupt.

Poverty plus companies not being allowed to charge prices.

Meters do not solve the problem. Many people bypass them sadly. Another problem created.

Also, GSM companies do a rip roaring business in the North. They set their prices, so they make enough profit to invest in improvements and bring down prices (at least compared to the 2001-5 period.).