Buy Nigeria to grow Nigeria yet the government has made it practically impossible to do this because of their deliberate inability to fix the power sector.

pocom16:


If you want private sector in there.. subsidy in electricity must end

That's why they have introduced Band A. Unfortunately, some people are turning it to politics. They don't have alternatives but will keep criticising a govt that is trying to solve the problem. Obis supporters will list all the problems but will not state one single solution. They are arm - chair critics. Why didn't Obi apply all his solutions to transform Anambra or current Otti.

Now that the dollar rate is down you guys have started singing new tunes.

iamtoofan:



Believe that junk of lies at your own Peril,, you know

If globacom had not come on board, till today Mtn & airtel would still have being explioting Nigerians citing high cost of production as a Valid excuse ..
If not for Airpeace , Nigerians would have continue paying through there nose for flight, now look at the price competition going on in the aviation industry, what happened to high cost of operation claim ... the elites class are easily bamboozled becos they think its the economic they read in school in play
TSTV if allowed would have exposed Dstv, cost of operation is valid but over abused

All we need is Just one sincere player in the power Sector and you will see all there Lies lose grip

Well, even then, globacom and air peace.dont have their prices set by government. They can raise or reduce their prices as they see fit

Power companies cannot, as a result all.the mess they have.

nairalanda1:


Well, even then, globacom and air peace.dont have their prices set by government. They can raise or reduce their prices as they see fit

Power companies cannot, as a result all.the mess they have.

If you understand economic well enough, even govt setting the price is not ideal,
competitive market is what should set the price, that is the organic measure that can trickle efficiency and satisfaction

If you are not a GenZ, Ntel had as much mess as whatever Mess you envisage in Power companies but there is no sector TRUE reforms can not fix, they are not just ready nii

If Govt is ready let them fully unbundle and decentralized transmission company into state-owned, however most of these power plants are sold to politicians and not real investors that should be re-visited & fixed

iamtoofan:



If you understand economic well enough, even govt setting the price is not ideal,
competitive market is what should set the price, that is the organic measure that can trickle efficiency and satisfaction

If you are not a GenZ, Ntel had as much mess as whatever Mess you envisage in Power companies but there is no sector TRUE reforms can not fix, they are not just ready nii

If Govt is ready let them fully unbundle and decentralized transmission company into state-owned, however most of these power plants are sold to politicians and not real investors that should be re-visited & fixed

So why are you opposed to discos setting their prices so that they can have enough profit to pay for improvements, pay the gencos and pay the TCN? And the gas companies?

Why do you oppose.the true deregulation of the power sector,which would mean more investment into things like mini grids.?

There is nothing like cheap power. Power sector suffers from lack of a cost reflective tarrif. That's why there is a lot of mess in the sector. Even with privatization for the last 11 years?

nairalanda1:


So why are you opposed to discos setting their prices so that they can have enough profit to pay for improvements, pay the gencos and pay the TCN? And the gas companies?

Why do you oppose.the true deregulation of the power sector,which would mean more investment into things like mini grids.?

There is nothing like cheap power. Power sector suffers from lack of a cost reflective tarrif. That's why there is a lot of mess in the sector. Even with privatization for the last 11 years?

Investment preceeds Profit not the other way round, the reason we are resistance to disco setting there price is because nothing they have on ground can reflect "value for money".. You don't expect people to be paying for darkness, infact cost reflective is subservient to value for money
Lemme give you an instance, If you build a hotel calling it a 5star is not what makes it a 5star, the service, furnitures & fittings is what makes it a 5star hotel ... you can't put plastic chair in a standard room, charge 100k and expect customers to pay because you promise you will upgrade to upholstery as the money is coming in. you go gree pay
In the last 16yrs over $29bn as being invested in the power sector without results, thats tell there is a root cause that needs to be address ... cos even if Disco make all the money and corruption remains, nothing will ever change

whatever profit wan do for disco, $29bn suppose don do am

iamtoofan:




Investment preceeds Profit not the other way round, the reason we are resistance to disco setting there price is because nothing they have on ground can reflect "value for money".. You don't expect people to be paying for darkness, infact cost reflective is subservient to value for money
Lemme give you an instance, If you build a hotel calling it a 5star is not what makes it a 5star, the service, furnitures & fittings is what makes it a 5star hotel ... you can't put plastic chair in a standard room, charge 100k and expect customers to pay because you promise you will upgrade to upholstery as the money is coming in. you go gree pay
In the last 16yrs over $29bn as being invested in the power sector without results, thats tell there is a root cause that needs to be address ... cos even if Disco make all the money and corruption remains, nothing will ever change

whatever profit wan do for disco, $29bn suppose don do am

Well, supplying power costs money, and all people look for return on investment

You won't charge N100 for a room in your hypothetical five star hotel, yet you want the DISCOS to do the same.

And when the inevitable happens you complain about bad service.

Face it, power costs money. A ton of money. And cost of things have no respect for any one's pockets.

We can get the discos to invest and give us 24 hour light, but they won't be able to maintain it on starvation tarrifs.

nairalanda1:



Well, supplying power costs money, and all people look for return on investment

You won't charge N100 for a room in your hypothetical five star hotel, yet you want the DISCOS to do the same.

And when the inevitable happens you complain about bad service.

Face it, power costs money. A ton of money. And cost of things have no respect for any one's pockets.

We can get the discos to invest and give us 24 hour light, but they won't be able to maintain it on starvation tarrifs.

Seems you enjoy putting the cart before the horse, business generally cost money

if i setup a illusional 5 star hotel with plastic chair and bed infested with bedbugs customers will price me anyhow

Any investor keen on huge ROI must be also ready to invest huge, no be say you go do patch patch wan dey charge exorbitant fee.

Should disco invest well enough to guarantee 20hrs supply they will reap there money wella ... all they have to do is learn from Dstv

iamtoofan:



Seems you enjoy putting the cart before the horse, business generally cost money

if i setup a illusional 5 star hotel with plastic chair and bed infested with bedbugs customers will price me anyhow

Any investor keen on huge ROI must be also ready to invest huge, no be say you go do patch patch wan dey charge exorbitant fee.

Should disco invest well enough to guarantee 20hrs supply they will reap there money wella ... all they have to do is learn from Dstv

LIke I said, DSTV did not have their prices set by government. Power companies have their prices set by government, which is why they can't make an adequate profit, because government is forcing them to charge below what it costs to produce one kwh of power.

Na you wey dey miss cart for horse. Would your business prosper if government forces you to charge at a loss?

You guys want free stuff. APC PDP, LP Members. Y'all better wake up, ELectricity is very very expensive.

Like that DSTV. It was and always has been expensive. THat's why your analogy is wrong.

4tomandchi:
That's renewed hope. We are just starting una never see anything. When a house is built on a wrong foundation e no go last.

"Subsidy is gone'

None of his people have responded to El - Rufai claim that FG now pay more for subsidy

North go open una scam for us to see they're everywhere

If fg is paying such a humongous amounts as subsidy why is faac increasing? And why is there convergence between parallel and official market? Unlike what we used to experience before in parallel and official market when Naira -dollar was pegged.

nairalanda1:


LIke I said, DSTV did not have their prices set by government. Power companies have their prices set by government, which is why they can't make an adequate profit, because government is forcing them to charge below what it costs to produce one kwh of power.

Na you wey dey miss cart for horse. Would your business prosper if government forces you to charge at a loss?

You guys want free stuff. APC PDP, LP Members. Y'all better wake up, ELectricity is very very expensive.

Like that DSTV. It was and always has been expensive. THat's why your analogy is wrong.

If you don't understand my point don't misconstrue, what you don't know ask
Dstv did not have there price set by govt cos it is FULLY owned by a private investor unlike Power sector where[b]govt have a stake hence the price subsidizing [/b] ... note the difference

When i say Power sector should learn from dstv, i meant power sector should learn how to protect it investment from all loopholes, only then they can amasse desired ROI

Dstv will spend any amount to block hacking, dongles or vandalization, dstv is ready to out spend any prospective rival that,
When hitv out bid dstv for premier league dstv did price reduction, and make sure they out bid hitv for longer period ... then they hike there prices thats business acumen

Dstv were not crying to nigerians to 1st pay exorbitant fee so they can get back premier league tv right. Dstv is the most expensive paytv in Nigeria but it is the most acceptable brand .... why ?? think

iamtoofan:




If you don't understand my point don't misconstrue, what you don't know ask
Dstv did not have there price set by govt cos it is FULLY owned by a private investor unlike Power sector where[b]govt have a stake hence the price subsidizing [/b] ... note the difference

When i say Power sector should learn from dstv, i meant power sector should learn how to protect it investment from all loopholes, only then they can amasse desired ROI

Dstv will spend any amount to block hacking, dongles or vandalization, dstv is ready to out spend any prospective rival that,
When hitv out bid dstv for premier league dstv did price reduction, and make sure they out bid hitv for longer period ... then they hike there prices thats business acumen

Dstv were not crying to nigerians to 1st pay exorbitant fee so they can get back premier league tv right. Dstv is the most expensive paytv in Nigeria but it is the most acceptable brand .... why ?? think

Yeah, and because government sets the price, the power sector cannot work, hence the problems it has...because no profit.

Nothing like cheap power, and cheap petrol. Years of price controls in both sectors has shown why

You want power to be cheap. I want it to be priced appropriately so that they can have the profit to give everyone power.

Time we removed subsidies on power

(And government has no stake in power supply..tis all private mostly).

iamtoofan:




If you don't understand my point don't misconstrue, what you don't know ask
Dstv did not have there price set by govt cos it is FULLY owned by a private investor unlike Power sector where[b]govt have a stake hence the price subsidizing [/b] ... note the difference

When i say Power sector should learn from dstv, i meant power sector should learn how to protect it investment from all loopholes, only then they can amasse desired ROI

Dstv will spend any amount to block hacking, dongles or vandalization, dstv is ready to out spend any prospective rival that,
When hitv out bid dstv for premier league dstv did price reduction, and make sure they out bid hitv for longer period ... then they hike there prices thats business acumen

Dstv were not crying to nigerians to 1st pay exorbitant fee so they can get back premier league tv right. Dstv is the most expensive paytv in Nigeria but it is the most acceptable brand .... why ?? think

Just for you..

From solving the liquidity crunch in the power sector. Shows how your favoried solution of price controls wrecked the power sector. Was not written by APC Or PDP By the way.

I'm done. Good afternoon

iamtoofan:




If you don't understand my point don't misconstrue, what you don't know ask
Dstv did not have there price set by govt cos it is FULLY owned by a private investor unlike Power sector where[b]govt have a stake hence the price subsidizing [/b] ... note the difference

When i say Power sector should learn from dstv, i meant power sector should learn how to protect it investment from all loopholes, only then they can amasse desired ROI

Dstv will spend any amount to block hacking, dongles or vandalization, dstv is ready to out spend any prospective rival that,
When hitv out bid dstv for premier league dstv did price reduction, and make sure they out bid hitv for longer period ... then they hike there prices thats business acumen

Dstv were not crying to nigerians to 1st pay exorbitant fee so they can get back premier league tv right. Dstv is the most expensive paytv in Nigeria but it is the most acceptable brand .... why ?? think

And just one more thing....and please do not read this...

IN 2013, Nigeria decided to privatise the sector. But 10 years after, the expected yields from the privatisation of the NESI have been hampered, in part, by the inability of the Distribution Companies (Discos) to charge cost-reflective tariffs.

As a result, all operators in the NESI value chain have been affected, effectively constraining investment in the downstream, comprising the Discos; midstream, where the Transmission Company of Nigeria (TCN) holds sway and upstream segment, comprising the gas producers and Generation Companies (Gencos).

With such constraints, although total national installed generation capacity stands at 13,000MW, Nigeria barely manages to get a third of that to where power is needed. The rest is stranded.

Thus, what this means is that there’s a misalignment of the entire value chain from gas to consumers. Without cost-reflective tariffs, the federal government has been forced to subsidise the real cost of electricity.

An energy expert and Country Director, Energy Market and Rates Consultants Limited (EMRC), Rahila Thomas, believes that in some way, this has hampered the operation and growth of the power sector.

“Every six months, the regulator is expected to review the tariff using economic indices to bring pricing to market level. Some of these variables are inflation, forex, and generation capacity.

“A review ought to have happened in July and the realities of the inflation and forex mean that tariff ought to have gone up. But for political reasons, this hasn’t been done. Government is now paying subsidies that have amounted to N3.34 trillion. Out of that, the government has paid N2.8 trillion to support tariff.

“Unfortunately, all these monies are resting on the books of the Discos and have impaired their ability to attract funding to improve their networks,” Thomas who spoke during a panel session at the just-concluded NESI roundtable in Abuja said.

sauce

nairalanda1:



Just for you..

From solving the liquidity crunch in the power sector. Shows how your favoried solution of price controls wrecked the power sector. Was not written by APC Or PDP By the way.

I'm done. Good afternoon

These are just filmsy excuses that as left the Power sector behind, all they do is forever complain,
In business, challenges/problem are inevitable, how you chose to mitigate is what gives a leverage to advance

Oga are you aware disco don't even have infrastructures that can transmit 4000mw a day ... what disco transmit everyday is below total generated power ...is that not under utility/wastage

If discos are recording loss its becos People can't be paying for darkness .. in my area total light supply we've had in 14days no reach 20hrs, and most houses here are on prepaid meter how disco no go loss, they crookedly pounce on postpaid customers with estimated crazy bills an expect them to pay for what they did not use ... go le werk, patch patch service will attract patch patch money simple

iamtoofan:




These are just filmsy excuses that as left the Power sector behind, all they do is forever complain,
In business, challenges/problem are inevitable, how you chose to mitigate is what gives a leverage to advance

Oga are you aware disco don't even have infrastructures that can transmit 4000mw a day ... what disco transmit everyday is below total generated power ...is that not under utility/wastage

If discos are recording loss its becos People can't be paying for darkness .. in my area total light supply we've had in 14days no reach 20hrs, and most houses here are on prepaid meter how disco no go loss, they crookedly pounce on postpaid customers with estimated crazy bills an expect them to pay for what they did not use ... go le werk, patch patch service will attract patch patch money simple

If you were running a business, you won't run it well if government told you to sell below wholesaler price and import cost to help the poor.

You want cheap things. All this long explanation is really going nowhere. Sadly, nothing like cheap things. Especially power supply.

nairalanda1:



And just one more thing....and please do not read this...



sauce

I can't believe you are talking about "cost reflective tariff" in a system where over 60% of electricity users are on estimated bill ... what about "value for money"

Customers are king and any sensible investor should know whatever is deem expensive must be worth it, until discos start thinking from the customer side of the table they will keep wallowing in loss

iamtoofan:




I can't believe you are talking about "cost reflective tariff" in a system where over 60% of electricity users are on estimated bill ... what about "value for money"

Customers are king and any sensible investor should know whatever is deem expensive must be worth it, until discos start thinking from the customer side of the table they will keep wallowing in loss

Well, no one has a magic money tree to do the things you want.

You can type this stuff, because GSM companies were allowed to charge cost refiective tarrifs. Yes, most of the money they used to give us good service came from our pockets.

Things cost money. Ye can't deny it. NO one would invest in a company that cannot charge cost reflective tarrifs...meanwhile, people can invest in gsm because they know they would see their money because...cost reflective tarrifs.

nairalanda1:


If you were running a business, you won't run it well if government told you to sell below wholesaler price and import cost to help the poor.

You want cheap things. All this long explanation is really going nowhere. Sadly, nothing like cheap things. Especially power supply.

Should Govt have a stake in my business govt will definitely regulated my price, check all the sectors govt have a stake they regulate and subsidize price its not only pertinent to discos

Over $30billion invested in power sector we havent exceeded 7000mw what does that tell you ..
you are fetching water in a basket nd all your brain is telling you is if the tap can rush well enough the basket will full .... does that change/address the problem

OGa corruption is the basket,that must be address 1st, discos are inefficient until that changes "cost reflective tariff" is not tenable

iamtoofan:



Should Govt have a stake in my business govt will definitely regulated my price, check all the sectors govt have a stake they regulate and subsidize price its not only pertinent to discos

Unfortunately, the price controls goverment put in place, are why the power sector cannot make enough of a profit...something like 3 trillion annually, to fix things in power.

Over $30billion invested in power sector we havent exceeded 7000mw what does that tell you ..
you are fetching water in a basket nd all your brain is telling you is if the tap can rush well enough the basket will full .... does that change/address the problem

Hoo boy, that 30 bn is a drop in the ocean. We need 100 billion over five years to guarantee everyone has power. (Nairametrics analysis).

OGa corruption is the basket,that must be address 1st, discos are inefficient until that changes "cost reflective tariff" is not tenable

Yeah, when you got no point, you resort to accusing me of defending corruption

The corruption is a side effect of lack of cost reflective tarrif. When una no pay someone well, he or she is going to resort to corrupt behaviour.

NO such corruption exists in GSM because they can charge a cost reflective tarrif.

nairalanda1:


Well, no one has a magic money tree to do the things you want.

You can type this stuff, because GSM companies were allowed to charge cost refiective tarrifs. Yes, most of the money they used to give us good service came from our pockets.

Things cost money. Ye can't deny it. NO one would invest in a company that cannot charge cost reflective tarrifs...meanwhile, people can invest in gsm because they know they would see their money because...cost reflective tarrifs.

If you don't have money to provide a luxury service then leave it for those that can, ... the investor should go look for business there money can run ... it simple

Cost reflective tariff is conducive in a competitive environment, thats what telecomm and aviation has that is missing in power sector "Competition"

I was listen to radio, and the OAP is begging Nepa to please give light the heat is tew much ... telecomms provided infrastructure that guarantees value for money,
what does discos have, community contrubute money to buy transformers, wires,poles and even maintainance whatever disco is giving back is it a match/commensurate

iamtoofan:



If you don't have money to provide a luxury service then leave it for those that can, ... the investor should go look for business there money can run ... it simple

Cost reflective tariff is conducive in a competitive environment, thats what telecomm and aviation has that is missing in power sector "Competition"

I was listen to radio, and the OAP is begging Nepa to please give light the heat is tew much ... telecomms provided infrastructure that guarantees value for money,
what does discos have, community contrubute money to buy transformers, wires,poles and even maintainance whatever disco is giving back is it a match/commensurate

It does not matter, the experts have spoken

Cost reflective tarrif.