Johnrake69:
Vote Peter Obi for Presidency. Let's try something different.

Nigeria can't afford the level of waste that has been institutionalised.

If Peter Obi or Tinubu or Atiku wants to change things, they have to do one thing and one thing alone...allow the DISCOS and GENCOS to set their prices above the cost of producing power, and scrap NERC...so that they earn enough money to fix power.

Aboki dey pay Nepa bill?

Subsidywise20:


I hate to defend Buhari, but reversing the privatisation would amount to breaking a contract, which means that the government would be on the hook for millions or billions of naira in compensation to the now fromer owners should they do so.

(Yes, government did look at reversing and took legal advice on the matter. The advice was that if they did it, they pay compensation)

I'm not talking about reversing the privatization but there are things he should have done to make the privatization useless without paying compensation to the evil private owners. This administration should have fully liberalised the sector and given more powers to states to generate, transmit and distribute without consulting or negotiating with distribution companies as they are doing now. Edo state govt went through hell in the hands of Bedc before they could establish the small power company they operate in the state. Federal govt also made gas either too expensive or inaccessible to state govts who engage in power generation, there was a period the Edo state failed to generate power from its company because of issue of gas unavailability\unaffordability. The discos should be made to stop acting like monopolies, let other companies also have power to generate, transmit and distribute within the areas where these discos are operating. Discos don't own the distribution facilities, we bought all the poles, wires and transformer in my area and we still paid BEDC to install them and at the end of the month still pay our monthly bills, many communities and individuals across the country did and keep doing the same thing, discos are only reaping where they didn't sow

Subsidywise20:


If Peter Obi or Tinubu or Atiku wants to change things, they have to do one thing and one thing alone...allow the DISCOS and GENCOS to set their prices above the cost of producing power, and scrap NERC...so that they earn enough money to fix power.

Lol... That's not how it's done. The consumers already invested so much. We pay for transformers, metre and general repairs. Those guys took over those assets without making any investment. Units generated are rejected by discos because they have failed to upgrade their distribution assets.

If you allow every one to fix price of everything then soon we will all be dead. Not when Nigerians purchasing power is at all time low.

We need to curb waste in the system.

oz4real83:
Gone are those days I used to blame GEJ for the evil privatization he did. Seven years are enough for PMB to correct all the errors in the evil privatization but he has absolutely nothing meaningful to offer. Power never improved for once throughout this administration. Bedc should be the worst among all the distribution companies, they don't even care about the public perception of them. Still no prepaid meters from Bedc. It has never been this bad in the history of this country. This administration took Nigeria to a messy state the country has never ever been in

how?correct errors of private companies. If not that they had loan default and amcon took over what could anyone have done.

Subsidywise20:
Not surprised.

IBEDC cannot meet up its demands economically because it has to charge for bills below the cost of producing power, and because a lot of people do not pay their bills in its catchment area.

Combined together, it cannot run at a profit, and has to be taken over by AMCON.

How could you expect people to pay bill for power not consumed?

I know of a certain environment that 2nd of this month makes it a year since they last had power supply because their transformer was damaged completely after they've paid IBEDC severally for the repair

Most areas across Ibadan don't enjoy cummulative of 5hours power supply in a month so how could you expect them to pay?

Where I lives, our transformer is 100% percent ok but the last time we ever smell power supply was mid may and it lasted for less than 15mins. Today is 6th July which means in few days it will be exactly 2months we ever smell power supply.

If there's stable power supply for at least 20hrs in a day, trust me a 2bedroom flat occupant will gladly pays 10k estimated bill because you can at least use your fridge, TV, ac & other electronics to your satisfaction. I spent over 1k on generating set everyday so if I have stable power supply & were billed 20k per month, I will gladly pay before am getting value for the payment & there's no need for me to buy fuel to power my generator again

IBEDC is the worst among these discos

oz4real83:
I'm not talking about reversing the privatization but there are things he should have done to make the privatization useless without paying compensation to the evil private owners.

Well, that's not possible either way. You break a contract, you pay compensation.

This administration should have fully liberalised the sector and given more powers to states to generate, transmit and distribute without consulting or negotiating with distribution companies as they are doing now. Edo state govt went through hell in the hands of Bedc before they could establish the small power company they operate in the state. Federal govt also make gas either too expensive or inaccessible to state govts who engage in power generation, Edo state failed to generate power from its company because of issue of gas unavailability\affordability.

States are free to generate power...the issue is that many can't afford it, and even if they could, many don't like the idea of 'transmitting power to the national grid for everyone to use'.

Plus, the real problem with power...is that the sector itself is not allowed to operate at a profit. When their costs of production goes up, the government refuses to let them raise prices , instead through NBET, the prices are kept low, and they lose money as a result...hence the reason why no improvement.

And if states could generate...what is the use of generating power, and operating at a loss because Federal government says you have to? GENCOS...the private companies, are struggling well well along with the discos.

As for gas....unless you want gas companies to operate at a loss, or government to be setting their prices (see how it is working in the power sector...and it is a big reason why we don't have working refineries...) it is even worse to set their prices, so that we can have cheap gas. Gas producers will just simply close shop, or sell on the black market and make back their investment plus profit. Or export.

Subsidywise20:
Not surprised.

IBEDC cannot meet up its demands economically because it has to charge for bills below the cost of producing power, and because a lot of people do not pay their bills in its catchment area.

Combined together, it cannot run at a profit, and has to be taken over by AMCON.

they are not charging bellow the cost of production. There looses comes from energy theft,non-compliance of customers to pay for electricity bills and all other technical looses that occur every now. The problem with the discos started from the privatization. Government sold the discos to broke Nigerians who does not have the money to manage and upgrade the existing infrastructure. As at today communities and private individuals buy transformer by themselves only for the discos to claim ownership and start bringing outrageous estimated bills.

godoluwa:


How could you expect people to pay bill for power not consumed?

I know of a certain environment that 2nd of this month makes it a year since they last had power supply because their transformer was damaged completely after they've paid IBEDC severally for the repair

Most areas across Ibadan don't enjoy cummulative of 5hours power supply in a month so how could you expect them to pay?

The same way we paid for bad performance for the GSM sector in the first three to four years, till they earned enough profit to make things better. Because their prices were not being set by government.

You make good points, but at the end of the day, the power sector cannot make a profit (and putting meters does not solve the problem...people bypass the meter and enjoy free power by the way)...and cannot make enough to improve things.

Johnrake69:


Lol... That's not how it's done. The consumers already invested so much. We pay for transformers, metre and general repairs. Those guys took over those assets without making any investment. Units generated are rejected by discos because they have failed to upgrade their distribution assets.

If you allow every one to fix price of everything then soon we will all be dead. Not when Nigerians purchasing power is at all time low.

We need to curb waste in the system.

1.We pay for transformers, meters and general repairs because the tarrifs we pay to discos and gencos are not enough for them to do the repairs by themselves..low prices, bad profits.

2.Also it is not true that they did not invest anything. They did. But at the end, they still have to make a profit.

3.And if you fix the prices of everything, it won't just be petrol stations that would be seeing long queues. Am sure if you were a farmer farming yam for sale at market, and government told you to sell that yam at N100 a tuber to help the poor, you won't smile and do that. Not when you have family and dependents to feed.

Businesses have to make a profit. It is because the GSM sector was allowed to make a profit that we have things like home internet.

Subsidywise20:


Well, that's not possible either way. You break a contract, you pay compensation.




States are free to generate power...the issue is that many can't afford it, and even if they could, many don't like the idea of 'transmitting power to the national grid for everyone to use'.

Plus, the real problem with power...is that the sector itself is not allowed to operate at a profit. When their costs of production goes up, the government refuses to let them raise prices , instead through NBET, the prices are kept low, and they lose money as a result...hence the reason why no improvement.

And if states could generate...what is the use of generating power, and operating at a loss because Federal government says you have to? GENCOS...the private companies, are struggling well well along with the discos.

As for gas....unless you want gas companies to operate at a loss, or government to be setting their prices (see how it is working in the power sector...and it is a big reason why we don't have working refineries...) it is even worse to set their prices, so that we can have cheap gas. Gas producers will just simply close shop, or sell on the black market and make back their investment plus profit. Or export.

why must a state transmit power that the state invested its resources to generate to the national grid while the people of the state live in darkness and business keep dying due to lack of power? A state should be allowed to use the power it has invested its resources generate for it's people, not the national grid as the present law requires.

Johnrake69:


Lol... That's not how it's done. The consumers already invested so much. We pay for transformers, metre and general repairs. Those guys took over those assets without making any investment. Units generated are rejected by discos because they have failed to upgrade their distribution assets.

If you allow every one to fix price of everything then soon we will all be dead. Not when Nigerians purchasing power is at all time low.

We need to curb waste in the system.

you have a deep insight in what is happening to those discos. The buyers thought it is come and chop not knowing that it come and invest and wait for 10years before you can break even but no they all left the distribution infrastructure without upgrade and they keep rejecting energy from the transmission company because their infrastructure cannot carry it and the want to minimize cost.

Subsidywise20:


The same way we paid for bad performance for the GSM sector in the first three to four years, till they earned enough profit to make things better. Because their prices were not being set by government.

You make good points, but at the end of the day, the power sector cannot make a profit (and putting meters does not solve the problem...people bypass the meter and enjoy free power by the way)...and cannot make enough to improve things.

They can control this to nearest minimum

There should be law to punish whoever bypass metre & it should be instant judgement

Lastmessenger2:
they are not charging bellow the cost of production. There looses comes from energy theft,non-compliance of customers to pay for electricity bills and all other technical looses that occur every now. The problem with the discos started from the privatization. Government sold the discos to broke Nigerians who does not have the money to manage and upgrade the existing infrastructure. As at today communities and private individuals buy transformer by themselves only for the discos to claim ownership and start bringing outrageous estimated bills.

They are charging below the cost of production. (Google for the PwC paper 'Solving the liqudity crunch in the power sector' for more information on the matter.). Power theft, non-compliance, worsens the matter.

oz4real83:
why must a state transmit power that the state invested its resources to generate to the national grid while the people of the state live in darkness and business keep dying due to lack of power? A state should be allowed to use the power it has invested its resources generate for it's people, not the national grid as the present law requires.

They should be, but at the end, they must charge at a profit, and not at a loss, and people must pay and stop bypassing their meters or chasing people away with cutlass

godoluwa:


They can control this to nearest minimum

There should be law to punish whoever bypass metre & it should be instant judgement

Well, the DISCOS do prosecute people bypassing meters, plus ye have to pay a fine if the meter is bypassed.

Subsidywise20:


They are charging below the cost of production. (Google for the PwC paper 'Solving the liqudity crunch in the power sector' for more information on the matter.). Power theft, non-compliance, worsens the matter.

I have worked with a distribution company. So I know some things. Discos always run at loss not because they charge below production cost because because of losses they encounter every month. Theses loses comes mostly in the form of
1: Energy theft
2 technical looses
3.Non compliance of customers to pay their bills.
How they be called a private company when they charge bellow production cost?

Igboland:
This is the comment of a lunatic
The Disco only distribute, the govt generate n sell to the disco at a certain rate and give a bench mark the Disco should sell at with good enough margin for profit but the bastard Ebele Jonathan / PDP sold the company to want to charge Nigerians trillion naira of what they can't produce. You have to be eternally mad to be defending the disco while blaming the govt.

Thank you for calling me a lunatic.

Good morning.

Lastmessenger2:
I have worked with a distribution company. So I know some things. Discos always run at loss not because they charge below production cost because because of losses they encounter every month. Theses loses comes mostly in the form of
1: Energy theft
2 technical looses
3.Non compliance of customers to pay their bills.
How they be called a private company when they charge bellow production cost?

Even then, still read the PwC paper. It has a more detailed report on the problems in your sector.

When AMCON go take over BEDC?

IBEDC is very cheap, some house are paying 2k monthly in ilorin while eko don nearly choke us for lag

godoluwa:


How could you expect people to pay bill for power not consumed?

I know of a certain environment that 2nd of this month makes it a year since they last had power supply because their transformer was damaged completely after they've paid IBEDC severally for the repair

Most areas across Ibadan don't enjoy cummulative of 5hours power supply in a month so how could you expect them to pay?

Where I lives, our transformer is 100% percent ok but the last time we ever smell power supply was mid may and it lasted for less than 15mins. Today is 6th July which means in few days it will be exactly 2months we ever smell power supply.

If there's stable power supply for at least 20hrs in a day, trust me a 2bedroom flat occupant will gladly pays 10k estimated bill because you can at least use your fridge, TV, ac & other electronics to your satisfaction. I spent over 1k on generating set everyday so if I have stable power supply & were billed 20k per month, I will gladly pay before am getting value for the payment & there's no need for me to buy fuel to power my generator again

IBEDC is the worst among these discos

Here in Port Harcourt when we were having 20hours per day light, a 2 bed room flat occupant refused to pay 10k bill preferring to bypass the prepaid meter. Generally Nigerians just don't like to pay for services which they expect to be world class and it does not work that way.

godoluwa:


They can control this to nearest minimum

There should be law to punish whoever bypass metre & it should be instant judgement

Story

Subsidywise20:


Because if they don't they would collapse.

That they are even able to remit half is a miracle in itself...they barely have enough...plus they don't pay money to the treasury per se as do NNPC.....they pay money to GENCOS and the TCN....

My question is did they put a gun to their head to apply to own discos and gencos? It's a contract for God's same nd they didn't keep to their end of it .

benardtotti:


My question is did they put a gun to their head to apply to own discos and gencos? It's a contract for God's same nd they didn't keep to their end of it .

Well, on the other hand, does the government have to set prices for a business?

The other day a neighbor said it's cheaper to cook with hot plate, electricity than with cooking gas.

Asked her if she uses prepaid meter and she said yes then I laughed and told her she is doing bypass and she said No she is not.

Omihanifa:
Just imagine the kind of questionable people that bought these discos. Nigeria is in a total mess. I can bet everything that apart from Abuja and Lagos discos. Others didn't invest anything to upgrade their assets.

PHED the port Harcourt disco is doing well

So forget that Lagos disco

Subsidywise20:


Well, on the other hand, does the government have to set prices for a business?

Bro the government would have thought otherwise if no-one took up their offer , they would have revised it , but some corrupt fake billionaires quickly lined up to own those discos and then turn around to start blaming govt is a big scam sir ! Govt has no blame in this .

Lastmessenger2:
I have worked with a distribution company. So I know some things. Discos always run at loss not because they charge below production cost because because of losses they encounter every month. Theses loses comes mostly in the form of
1: Energy theft
2 technical looses
3.Non compliance of customers to pay their bills.
How they be called a private company when they charge bellow production cost?

Sorry to quote you again, but as a follow up to my previous response.

The issues facing the Nigerian power sector remains multi-faceted but in our view, top on the list is the non-cost reflective tariff While we acknowledge that the current macroeconomic landscape may not be best suited for another hike in electricity tariffs, we note that the continued adoption of non-cost-reflective tariffs will exacerbate the anemic position of Discos, prevent the overhaul of poor transmission infrastructure, hinder private sector investments and constrain the development of the power sector. With government revenue under significant pressure, we believe government liquidity injections may prove to be insufficient in sustaining the power sector

Source: Nairametrics

Lastmessenger2:
I have worked with a distribution company. So I know some things. Discos always run at loss not because they charge below production cost because because of losses they encounter every month. Theses loses comes mostly in the form of
1: Energy theft
2 technical looses
3.Non compliance of customers to pay their bills.
How they be called a private company when they charge bellow production cost?

You are right but why do DISCOS still charge residents for repair work carried out on transformers? NERC too is not helping matters.