nairalanda1:



Because, to answer your question... cost-reflective tariffs, plus power stealing mean DISCOS lose money. You cannot give good service under such circumstances

Plus, the government is broke.

See the problem.




Heavy donor-related subsides, plus generics. Next.



You can ask them. All I know is, that due to low oil prices, we were having difficulty funding subsides. That was obvious even as far back as 2011, which is why GEJ wanted to remove subsidies. But you guys said no. Some of us saw the light back then, but we were called government supporters, even when we were not, so silence was the best course.

1. They reject power because they are not making enough money to accept it.....which leads us back to non-cost reflective tariffs, power stealing and so forth

2. Estimated billing is what results when the power sector's profit-making ability is reduced...and when large percentages are not paying for power.


Yes, and they supply at night too. Depends on the band you are on though. (Band A areas don't have that issue.



Imo state is not the entirety of Nigeria.

A lot of meters are attached to homes. That's how it was done in the days of NEPA, and it still happens now. That's where the bypassing happens. I've also seen the meters installed on poles, but they are not the majority.

And even those can be bypassed. Much easier.

Which is why they cannot make a profit. And why they reject power.

Note that GENCOS spend a lot to make power. They pay for gas (most of our power is from gas) in dollars....yes, including Nigeria Gas company. That's part of the problem.

MadamExcellency:


You have repeatedly made the insinuation that the DISCOs are not making money. Who sent you or made you their advocate? We are talking about inefficiency in both the distribution and bill payments/collections.

For instance, in my home town, every community is connected to the National grid through the VH tension (11,000KVA lines) to the transformer and a watt meter is connected to the VHT transformers which shows the total consumption per month and the bills are issued by the DISCO and paid by the communities completely every month. It is not the EEDC that goes from house to house for the collection of the money but members of the communities elected by the communities. I am talking about the sizeable percentage of Aba mega city. The communities sometimes have excess money in their purse from donations and contributions for the electricity projects. If the communities have an excess budget, how then are the DISCOs making losses if not inefficiency?

Secondly, don't you think that the DISCOs are inefficient because of the bulk money they get from intervention funds from the Federal government? These monies come in billions of naira.

There are no excuses worth tendering for DISCOs' inefficiencies. It is mismanagement, gross incompetence and negligence of duty that is bedevilling the system that needs reforms by the shareholders and government representatives for efficient management and redress.

nairalanda1:



Well, for more information, google for the paper ' Solving the liquidity crunch in the Nigerian power sector'. It gives out a lot of information you need

Also, four power discos are now in the hands of their creditors

Finally news reports and lots of reserch from 2013 is why i hold the views i hold.

Finally, you should know that at the end, all i say here is simple. Allow a man to make profits, things will work


Good evening. Once again, the fact that i hold different views from there is no reason for you to have abused me earlier. That was wrong, and you should do better. You are not on the playground. You can disagree on this site without being abusive and petty.

Thank you

And we need something like 30 trillion naira annual investment in power. That 450 bn won't do much

MadamExcellency:


You did not do justice to my submissions. You didn't quote a comment and refused to address the issues raised. Stop reading too much from academic resolutions on papers. These academic exercises are why Nigeria is failing. We need practical and workable formats like the workable one I narrated.

Let me rephrase my comment to enable you to understand better.

You have repeatedly implied that the DISCOs are not profitable. Who authorized you to advocate for them? We are discussing the inefficiency in both distribution and bill payments/collections.

For example, in my hometown, every community is connected to the National grid through Ultra High Tension (11,000KVA lines) to the transformer. A watt meter is connected to the UHT transformers, displaying the total monthly consumption, and bills are issued by the DISCO. However, the collection of money is not done by the EEDC but by elected community members. This arrangement is followed by a significant percentage of Aba mega city. Sometimes, the communities have surplus funds from donations and contributions for electricity projects. If the communities have extra funds, then how can the DISCOs be incurring losses unless there is inefficiency?

Furthermore, do you not think that the DISCOs' inefficiency is due to the large sums of money they receive from intervention funds provided by the Federal government? These funds amount to billions of naira.

There are no acceptable reasons to justify the DISCOs' inefficiencies. It is a result of mismanagement, severe incompetence, and neglect of duty. Reforms are necessary, and both shareholders and government representatives should take measures to ensure efficient management.

nairalanda1:
Ideally, it is the job of the local DISCO, not the job of PHCN. PHCN does not exist. Discos and gencos and TCN have replaced it.

But as to why consumers contribute...this one is easy.


Nigerians are not paying cost reflective tarrifs for electricity. Additionally, over 30% of us do not pay for the power we use.(If you think I am lying...google for the PwC report Solving the Liquidity crunch in the power sector).

As a result, your local DISCO is owing money, and at least 3 of them have been taken over by the banks. Up till today...many of our DISCOS have not broken even. THREE of them, and I mean three of them, have been taken over by their creditors, one has been taken over defacto by the government.

Why...because Nigerians do not want to pay their power bills at market price. We think we must have power for free.


Meanwhile, GSM companies, if the antenna spoil, dem go replace am. Your local provision store owner, if he runs out of milk today, he will replace it within a few hours, if not tomorrow latest....because they are allowed to do something the power sector is not allowed to do. Sell at market price.


This is the result of not letting DISCO set prices.....you will be asked to contribute for your generator.


I went to a private school for primary school, and then for secondary school, na government school I go. My school fees in the primary school were at one point three times what I eventually was paying in the government secondary school I went to....yet in the primary school, in over 6 years of being there it was two times I bought exercise book for myself...the second time, because the supplier was late,and I was advised to buy a book...anyway, normal service was resumed in a few days.

When I entered secondary school, I was paying cheap school fees. Guess what......in my six years there I was buying all my exercise books and stationeries and textbooks while there. Something that in my private primary school..they were issuing us textbook.



Let us all pay a cost reflective tarrif.......and you will see your disco provide you with high quality transformer that would last 300 years. Not this one where we pretend power is cheap, and where in some areas half the population thinks it is free of charge. Ok o.



Modifed.


I thank everyone who has responded to me. As it is, my point is simple. Allow DISCOS to set the price that allows them to make a profit, and you won't have to buy anything for them AT ALL...because they would use their profit to buy it for you.

To all those that abused me, not only do I say shame on you, you guys should not take this site serious. The way you respond, it shows you have allowed me to have so much power over you. You don't have to be my slave, you can be free of me...and be calm.

Okarakwu:
Simple question ...who supposed replace bad transformer ...and you dived into story

MadamExcellency:


You did not do justice to my submissions. You don't quote a comment and refused to address the issues raised. Stop reading too much from academic resolutions on papers. These academic exercises are why Nigeria is failing. We need practical and workable formats like the workable one I narrated.

Let me rephrase my comment to enable you to understand better.

You have repeatedly implied that the DISCOs are not profitable. Who authorized you to advocate for them? We are discussing the inefficiency in both distribution and bill payments/collections.

For example, in my hometown, every community is connected to the National grid through Ultra High Tension (11,000KVA lines) to the transformer. A watt meter is connected to the UHT transformers, displaying the total monthly consumption, and bills are issued by the DISCO. However, the collection of money is not done by the EEDC but by elected community members. This arrangement is followed by a significant percentage of Aba mega city. Sometimes, the communities have surplus funds from donations and contributions for electricity projects. If the communities have extra funds, then how can the DISCOs be incurring losses unless there is inefficiency?

Furthermore, do you not think that the DISCOs' inefficiency is due to the large sums of money they receive from intervention funds provided by the Federal government? These funds amount to billions of naira.

There are no acceptable reasons to justify the DISCOs' inefficiencies. It is a result of mismanagement, severe incompetence, and neglect of duty. Reforms are necessary, and both shareholders and government representatives should take measures to ensure efficient management.

obesse:

No mind am o!
He who knows nothing but tries to prove that he knows a lot is a fool. Just ignore him.

obesse:

You are chatting with somebody with over 30 years of experience in business, as a senior management member and later, an astute entrepreneur.
I wonder if you have ever managed any notable business in your life. Little wonder you try to force your trash down the throat of the gullible.
Guess what, it cannot work on this platform because everybody can see through you!
Inugo?

obesse:

There is a difference between theoretical knowledge and experiential knowledge. Your write-up shows that you lack both.
The only thing you do is to copy information from the internet about specific issues and paste it on Nairaland.
But, unfortunately, you do not understand that, before you can make any sense at all, your argument must be in the correct context.
The only thing you have learnt in your life is that a business must make a profit, but you are not away that there are several ways to make profit without necessarily having to overburden the consumers, especially if it has to do with an essential service like the provision of electricity.

obesse:

You have repeated the same point more than 20 times in this thread alone. This is a clear indication that you are shallow in your thinking!
You cannot grow if you refuse to accept that you are wrong.
So, just continue to wallow in your ignorance!

nairalanda1:


Yeah, and you expect a sector that cannot set its prices and has more than 30 % of its customers not paying for its service to give you 24 hours power.

Aight.

And you are here calling me ignorant.

Good evening. I won't trobule you no more.

obesse:

I am convinced that you have never in your life seen the authentic financial records of the organizations you are defending. Even if you see the records you cannot interpret them.
Also, you have not worked as a senior manager in any of them. So you are not privy to a lot of things going on.
As far as you are concerned, ignorance is bliss! So Continue!

nairalanda1:


Better stop being a bully. It is not good for you.

But you won't listen to this old joker...

Good evening.

obesse:

I can only feel sorry for you and your loved ones who depend on you. You need a good job, not this one you are doing.
Try to send your CV to me. I will see what I can do.
In your reply please include your phone number and your email address.
Good night, I have to prepare for a meeting I will be having first thing tomorrow.

omohayek:

Honestly, you have the patience of a saint. So many Nigerians seem unable to respond to opinions they find disagreeable other than by pouring out invective and abuse. Nigeria's educational system is good at turning out people who know how to cram and pass exams, but it does an abysmal job of teaching the principles of logic and the basics of rational argumentation.

obesse:

There is no need to be shy!
Just send me your CV. I know the economy is biting hard. This is the more reason to help some people the little way you can.
Give me your phone number and email address. I will contact you tomorrow.

obesse:

There is no need to be shy!
Just send me your CV. I know the economy is biting hard. This is the more reason to help some people the little way you can.
Give me your phone number and email address. I will contact you tomorrow.

nairalanda1:


All this because of the fact that power must be sold at a profit.

I really have that much power over you, son.

(You are not as old as you claim, otherwise you won;t be this petty).

obesse:

Well, I have done my own part. Best wishes to you.
I am done here.
NB: The offer is still on the table until the end of this month.
Good night.

nairalanda1:


Vanity and Pride...They are weeds of very sudden growth, and, getting once a start,
They choke the flowers that otherwise would beautify the heart.

M. Taylor.

obesse:

Well, I have done my own part. Best wishes to you.
I am done here.
NB: The offer is still on the table until the end of this month.
Good night.

obesse:

The offer is still on the table.

obesse:

The offer is still on the table.
Right now I am switching off my phone
Good night.