₦airaland Forum

SalamRushdie:
Tommorow the govt will still say Nigerians are not paying for electricity

Generation is not the problem, distribution is the problem, after consuming the electricity, you the masses would not want to pay, they still demand military created subsidies.

So generation companies will always make money.

blacknp:
Generation is not the problem, distribution is the problem, after consuming the electricity, you the masses would not want to pay.

So generation companies will always make money.

You don't even understand how the power sector works ..Gencos sell power to discos who in turn sell to Consumer , the fraud happens when Discos reject the light and any light rejected has to be paid by the FG according to their evil agreement

Otedola don hammer

SalamRushdie:
Tommorow the govt will still say Nigerians are not paying for electricity

FG says, they are paying them 200 billion monthly.

Without this, they would run at a loss.

SalamRushdie:
You don't even understand how the power sector works ..Gencos sell power to discos who in turn sell to Consumer , the fraud happens when Discos reject the light and any light rejected has to be paid by the FG according to their evil agreement

Exactly you reiterate my point, they reject the electricity based on the fraud going on amongst u the consumers.

Like I said earlier, Gencos no get problem, genco generates 56mw, gives distribution 45, distribution gives consumer 21%, consumer pays only 13%.

E no affect genco guaranteed 45% payment demand.

Ojuntana:
I thought power sector was having financial issues

How is a Genco profitable when a Disco is not

Nairalanda1

This is one of the company collecting 200b electricity subsidy

Cmeo:
This is one of the company collecting 200b electricity subsidy

Least u could have done is to try & make sense.

A power generation company collecting subsidy for what?

Ojuntana:
I thought power sector was having financial issues

How is a Genco profitable when a Disco is not

Nairalanda1

Subsidy

IbnB:
Subsidy

Subsidy for power generation company?

History555:
Tomorrow govt will tell you its subsidising light and people are not paying their bills

People can be so dumb, and na person use money send you go school O.

Geregu is a Genco and bound to make money. Na the discos dey struggle to make money largely because they're still enjoying inflow of government money. If government decides to hands off discos, #ENDSARS protest will be a child's play.

Rupertek:
With the volume of profit the Gencos are declaring, is the FG paying for shortage in cost or the big appetite of the Gencos and discos?
At the end all these are covered with corruption, massive corruption. The money from Tarrif is actually enough

Correct. Subsidies in this sector will only enable inefficiencies like it did in the petroleum sector.

Here the issues are more nuanced. Consumers tap power, refuse to pay plus everyone on bands B and below are being subsidised. This means even if the discos collect 100% of what they supply they will still be short and not have enough to pay their Gencos for the supply.

In June 2024, DisCos collected 150.86 billion NGN out of a total billing of 176.57 billion NGN, resulting in a 14.56% collection shortfall. Discos sometimes reject load as a result to avoid being charged and in this cases the FG has to pay for it. Lastly the TCN which owns the power lines connecting the genco’s and discos also tends to have issues from vandalism or old equipment that prevent supply from flowing freely leading to a grid collapse.

free2ryhme:
Look, power companies have been complaining about low tariffs, but earned an impressive ₦137 billion in revenue, with a 71% increase in profits! On top of that, they're distributing ₦21.25 billion as dividends. It seems the "low tariff" excuse no longer holds up

government is subsidising the sector especially consumers not under Band A, FG fill in any shortfall from the discos to the Gencos so that the Gencos obligations to the gas suppliers are not disrupted. Discos collect tariffs from the end users (consumers), remittances are now made to the Gencos via NBET while Gencos pay their gas suppliers

At what rate is this Genco selling its power to Discos. That is what we want to know. Even if it receives subsidy.

blacknp:
Exactly you reiterate my point, they reject the electricity based on the fraud going on amongst u the consumers.

Like I said earlier, Gencos no get problem, genco generates 56mw, gives distribution 45, distribution gives consumer 21%, consumer pays only 13%.

E no affect genco guaranteed 45% payment demand.

I have never stolen electricity please

blacknp:
Subsidy for power generation company?

Yeah dude all the gencos are subsidized by FGN

IbnB:
Yeah dude all the gencos are subsidized by FGN

Subsidized how if I may ask?

SalamRushdie:
I have never stolen electricity please

Opportunity makes a Thief.

Ezmans:
don't be surprise that some villages around this power plant may be in darkness

They are Gencos, their product is for Discos and not consumers.
Besides, it is a business and not charity.

MadamExcellency:
Nairaland1 said power companies aren't making a profit. This is how inexperience degraded the quality of discourse.

I think you are commenting based on ignorance.
Gencos are not Discos.

There are several layers within the power companies.
Gencos are like the generating set, they don't deal with the public.
Their clients are the Discos and government.

MadamExcellency:
Nairaland1 said power companies aren't making a profit. This is how inexperience degraded the quality of discourse.

I think you are commenting based on ignorance.
Gencos are not Discos.

There are several layers within the power companies.
Gencos are like the generating set operators, they don't deal with the public.
Their clients are the Discos and government.
If they don't get paid, they switch off the generator.

kettykings:
If the electricity sector is this liquid and lucrative, how come there is no matching investment

Compare the profits to real life economic metrics and realize that it is nominal profits i.e profits by volume not by value of money. In real economic terms, they are loosing because more the profits doesn't match the naira devaluation.

Cmeo:
This is one of the company collecting 200b electricity subsidy

Oga, electricity subsidies are paid to TCN and Discos not Gencos.

OTEDOLA MONEY
FO IS SMILING TO FIRST BANK RIGHT NOW