₦airaland Forum

Does this mean Band B, C, D and E customers will be enjoying FREE electricity, since the subsidy has already knock-off the rate


Power distribution don dey rip us o...if true.

..and the minister of power keep shouting the subsidy on electricity is too much...if it's too much, enforce it on distribution companies to allow citizens enjoy this subsidy to the fullest, just as Enugu is doing...so, that wen it's finally removed, we will know we have been enjoying subsidy in the real sense of it

nairalanda1:
That's how they will make the power sector there broke, and make it difficult for them to pay the gencos.

People don't get it, but the ability of a business to set its prices is what keeps it going. If government agencies start setting their prices, that's how they lose money and get run out of business.

But most nigerians want cheap things. Well, the truth is, we can't have cheap electricity, because it costs a lot to get the power to the consumer, and also because a lot of work needs to be done to get us to where we need to be...24/7 power.

What annoys me is that making this point apparently means you support APC. And you are agbado. For once forget politcis and imagine if tinubu set up a price regulatory agency to force your business to charge cheaper prices to help the poor. You won't like it after a few months.

It costs about 160-170 naira to make one kwh of power...and the cost keeps going up.

It shouldn't cost that much to make a kilowatt if corruption is removed. That's the point people have been making since.

Excellent news this Monday morning. Others should follow too. Nigeria will be great again.

Ikeja discos, the exploiter will never, they are common criminals

MadamExcellency:
I recall Nairaland1 stating that the Distribution Companies cannot turn a profit unless they exploit Nigerians, for any chance of an industrial revolution.

Well, at the end, a business has to make a profit, otherwise it won't be able to pay workers decent salaries and pay for upgrades and maintenanc,e and remember, those workers are ordinary nigerians

Also remember that at the end of the day, we really do need a lot of cash to fix power, and investment ain't going to come if at the end of the day, government at federal and state levels does price controls.

I thought you were not a fan of tinubu, yet 80% of customers in nigeria are not on band A because tinubu is doing the same thing this regulatroy agency does for the majority of Nigerians

The result is low profits, three discos declaring force maejure, and a power sector that is not growing

It's kind of strange that you think that profits are made to go into the owner's pockets...they have to pay for a lot of things.

Always remember that being smart is not the same as having common sense.

Well, a business has to make a profit to work well, and to supply the things you need. That's not just common sense, that's a fact.

When buhari was controlling prices of milk, sugar and some other foodstuff vis essenco in the early 1980's, there was scarcity. Until the price controls and subsidy went, and thus there was no scarcity.

If you want a communist revolution and a communist government, that would set prices low to help the masses, no problem. But price controls always end in scarcity and issues.

I get that you are concerend about exploitation, but does it make sense that you sell something that it costs N160-170 to make at N160? Whewre is the profit going to come from?

Good morning, and have a good day.

Zidac:
I've been in Enugu for the past week and I've never experienced this kind of power supply anywhere in Nigeria. I have traveled to several parts of Nigeria but none compares. Here it's about 23hrs 30 mins 24/7 consistently. It's really unbelievable

Bro, there are areas within ikorodu where dey use light like water.

Lagos State governor, we are not enjoying electricity subsidy, EKDC rates are too high in Lagos, this will shrink the Lagos economy. Lower electricity prices boost production.

Samogloby:
Whereas, T-pain government just increased my tariff from around #64 or thereabouts to over #200 in Abuja. I still promise to vote anything comes 2027 except Tinubu

Even I have decided to vote anything but Tinubu comes 2027. The man is a big liar. Nothing good can come from his government. He is only deceiving the masses.

Unbelievable!....pls keep up the awesome job 🙌🙌👍👍👏👏👌👌💯💯💯💯

Waiting for the notorious, insatiable, evil ikeja ikedc to emulate this highly commendable gesture

Paentera:
I see Enugu Electricity Regulatory Commission (EERC) reversing the tariff reduction announcement within a few days.

Why?
The commission has been faulted in its approach to tariff sculpting considering it in error, created the tariff reduction framework for band A consumers based on receiving a subsidy from the Federal Government. In 2025, Generation companies invoice an average of N250billion monthly for generating power (N3trillion annually) while the Federal Government only made a subsidy provision of N900bn in the 2025 fiscal year.

All electricity subsidy provisions in the 2025 fiscal budget are strictly for lower bands (B to E) while band A tariffs are sculpted to be 100% cost reflective, so it is technically impossible for the EERC to expect the Federal Government to make up a tariff shortfall for consumers on Band A within Enugu State. Effectively, for EERC to proceed with this tariff for Band A consumers will mean Enugu State Government will have to cough out N49 for every kWh consumed by band A users in the state. This makes no economic sense to say the least considering the limited resources available to the state's treasury.

I do hope the state ERC knows what it is doing.

If you agree there is subsidy to the tune of #49 per KW...why are Band C, D, E paying for electricity anywhere in Nigeria..since the subsidy is enough for what they consume

treesun:
Freezes bands B, C, D and E tariffs


https://www.thisdaylive.com/2025/07/20/enugu-electricity-regulatory-commission-issues-new-tariff-crashes-band-a-from-n209-to-n160-per-kwh/

The plan has been to put everyone in Band A, we all know it. Band B, C, D was just for you to get your prepaid meters so that when they force everyone to band A you will pay exorbitant price.... Pls this slashing is too small it should be ₦50 per hour helinues am I right?
I need to study how pricing of electricity works in this part of the world.

PresidObi:
It shouldn't cost that much to make a kilowatt if corruption is removed. That's the point people have been making since.

It does, sans corruption. The truth is, power is very expensive to make. The gas costs money and transmission costs money.

Also, remember we are living in tinubu economic hardship. DISCOS have to pay higher salaries for their workers to be happy...they are unionised by the way, and yes, they can go on strike. They also have to pay gencos, who have their own workers to keep happy, and TCN which is a government agency, and which needs money for the current upgrade of the transmission system

All that adds up to higher prices.

It has nothing to do with corruption. Redcuing the price does not change the fact that it costs N160-170 last time i checked (a year ago...meaning prices could have gone up)....to make a kwh of power.

The only way forward for now is that dangote increases donestic gas production, which might crash the price of all forms of gas. Maybe it would help, maybe not.

Long term, we need investment, and it is going to come from inside and outside. No one is going to invest in a sector where government is setting the prices.

Has nothing to do with corruption. People have to make a living in these tinubulised times.

PlasmaTV:
Good stuff!

Other folks should follow suit abeg. The money people pay for so called Band A is outrageous

E high but correct.
Dem do am for class, say nor be everybody go fit use.

adioolayi:
Does this mean Band B, C, D and E customers will be enjoying FREE electricity, since the subsidy has already knock-off the rate


Power distribution don dey rip us o...if true.

..and the minister of power keep shouting the subsidy on electricity is too much...if it's too much, enforce it on distribution companies to allow citizens enjoy this subsidy to the fullest, just as Enugu is doing...so, that wen it's finally removed, we will know we have been enjoying subsidy in the real sense of it

It's the subsidy that is making it difficult for the power sector to make enough money and attract investment to pay for things like more power stations, better transmisison, even more dams...for HEP.

As a result, that's why most of us have poor power supply. We get what we pay for.

Subsides look great on paper, but unless you have a bottomless pit of money yielding trillions of naira every day, you can't afford it.

Under subsidy, power secotr makes N1-2 TRILLION Naira profit a year. Good..until you hear the experts say that we need investment of N10-15 TRILLION yearly...YEARLY...for power to get to the needed 34000 mw which we need to get 24 hours power.


Yes, we are poor, but power is sadly expensive. Countries that have cheap power are paying for it via higher debts.

favour32:
E high but correct.
Dem do am for class, say nor be everybody go fit use.

how many hours of power supply do you use per day

Are you a prepaid or postpaid users

How much do you paid per month

You talk like a person that bypass light

What most of Enugu people on Band A should be asking Governor Otti is "What is the trade-off for the reduced tariff?"

The economic collapse that this decision will lead Enugu State into if the state proceeds with it will be child's play compared to that of Nigeria and its economic collapse as a direct result of petrol and utilities subsidies.

Don't forget that there is always a trade off. Learn to ask how it will be funded.

Normal thing to do.

The band A isn't even Band AAA another. Most times you end up having light only 12 hours a day. So why do we call it band A

adioolayi:
If you agree there is subsidy to the tune of #49 per KW...why are Band C, D, E paying for electricity anywhere in Nigeria since the subsidy is enough for what they consume

Think of it this way, if the N49/kWh currently being subsidized was not provided by the Federal Government for consumers on bands B to E, they will be paying their current tariff+N49. So if a consumer on band B currently pays N65/kWh, the actual tariff that should be charged today should be N65+N49 = N114/kWh.

This also applies to other lower band tariffs.

A subsidy does not mean the consumer pays zero for an economic product, it just means they pay a bit less than they should.

Jd10k:
Ikeja when are you going to implement your own? #209 but your own is#250 why this ripping off

I've always said Ikeja Electric is not a real business. E remain small, those ones will carry gun and be robbing from house to house.

Paentera:
Think of it this way, if the N49/kWh currently being subsidized was not provided by the Federal Government for consumers on bands B to E, they will be paying their current tariff+N49. So if a consumer on band B currently pays N65/kWh, the actual tariff that should be charged today should be N65+N49 = N114/kWh.

This also applies to other lower band tariffs.

A subsidy does not mean the consumer pays zero for an economic product, it just means they pay a bit less than they should.

Okay...Thank you

nairalanda1:
It does, sans corruption. The truth is, power is very expensive to make. The gas costs money and transmission costs money.

Also, remember we are living in tinubu economic hardship. DISCOS have to pay higher salaries for their workers to be happy...they are unionised by the way, and yes, they can go on strike. They also have to pay gencos, who have their own workers to keep happy, and TCN which is a government agency, and which needs money for the current upgrade of the transmission system

All that adds up to higher prices.

It has nothing to do with corruption. Redcuing the price does not change the fact that it costs N160-170 last time i checked (a year ago...meaning prices could have gone up)....to make a kwh of power.

The only way forward for now is that dangote increases donestic gas production, which might crash the price of all forms of gas. Maybe it would help, maybe not.

Long term, we need investment, and it is going to come from inside and outside. No one is going to invest in a sector where government is setting the prices.

Has nothing to do with corruption. People have to make a living in these tinubulised times.

Dangote does not yet produce Natural Gas used for firing GenCo power plants.

Paentera:
Dangote does not yet produce Natural Gas used for firing GenCo power plants.

Thanks for the information. I believe that eventually he will tho. But for now, till it happens...

oche2020:
As it should be

No enough words to make up 40 characters

I could lend you some... I have more than enough...!

MadamExcellency:
I recall Nairaland1 stating that the Distribution Companies cannot turn a profit unless they exploit Nigerians, for any chance of an industrial revolution.

Always remember that being smart is not the same as having common sense.

🤣🤣🤣
I tried to hold a civil conversation with that man. It didn't take too long before he started adding subtle insults to his submissions. Na there I wash my hand commot from him and him PWC report matter. 🤣🤣🤣🤣

PHED no fit try this. Instead them go dey find way to increase their own

Hemanwel:
What the federal government cannot give its citizens, a State governor is doing it.

If not lack of thoughtfulness (or to some extent...wickedness), why would the government of a nation think that the only thing its citizens will benefit from its administration is Public Holidays?

Shame on Bola!

Who developed and ensured the electricity act bill was passed into law that currently gives states the power to generate, distribute and regulate electricity market in their state??..who??

Zidac:
I've been in Enugu for the past week and I've never experienced this kind of power supply anywhere in Nigeria. I have traveled to several parts of Nigeria but none compares. Here it's about 23hrs 30 mins 24/7 consistently. It's really unbelievable

Most parts in Lagos state already enjoy this..
Yesterday I had 23hrs supply on band B

nairalanda1:
Thanks for the information. I believe that eventually he will tho. But for now, till it happens...

😂😂..natural gas are from oil wells and gas alone wells brother and it doesn’t need production..
The equipment used to drill,process and transport gas is 5x costlier than that used in oil drilling..

IBEDC werey!

Come and see your mates oooooo.

PresidObi:
It shouldn't cost that much to make a kilowatt if corruption is removed. That's the point people have been making since.

What is the cost to run your generator at home for 24hrs??..
Or do you think they produce electricity differently??..it’s the same process bro…burn gas to turn an alternator!!..
And gas isn’t cheap bro..yes Nigeria has a lot of gas reserves but are we going to tap it with our bare hands..do you know the cost of a gas valve talkless of a compressor??..

Frezhkid10:
What is the cost to run your generator at home for 24hrs??..
Or do you think they produce electricity differently??..it’s the same process bro…burn gas to turn an alternator!!..
And gas isn’t cheap bro..yes Nigeria has a lot of gas reserves but are we going to tap it with our bare hands..do you know the cost of a gas valve talkless of a compressor??..

Your argument is flawed bro. You should consider the economies of scale. There is no way a single user can be equated to millions of people in the consideration about cost of production.