₦airaland Forum

EKEDC is blocked from leaving the group chat.....

We need more of these chaos. It is chaos like this that will lead to breakthrough in the electricity generation and distribution in this country. The monopoly of electricity in this country has been giving some people opportunity to milk the citizens of their hard earn money

nairalanda1:
Lol, this isn't deregulation. This is government pushing off regulation to the states , who are in turn repeating the same thing government does, control prices

Put aside politics, oga. Will you let government control your prices if you were in business?

Seems you don't know where Nigeria is coming, from the days of NEPA to PHCN till we reach here..

Deregulation of power sector has been happening and many achievements made already some of the actions so far are:
enacting the Electricity Act 2023, unbundling the state-owned utility (PHCN), privatizing generation and distribution companies, establishing an independent regulator (NERC), and encouraging private sector participation.

Maybe you are not aware.

Majority of Nepa staff, if no 90 percent, don't pay bill.

Check the house of that general manager very well, she's paying close to nothing.

But they enjoy hike in price.

1000 naira to buy 3-4 unit. Such unkindness

Just read the entire thing.

First and foremost. With the decentralisation and states/regions having their service independence perhaps EEDC feels its share of the 4 trillion debt, legacy or not is insignificant or perhaps manageable so they are willing to take it on.

But what I also think is that they are looking at the whole industry with a view to creating a healthy balance between supply and demand. For just as it is easy for the vendors to say right pricing or supply collapse, it is also incumbent fir them to realuse that wrong pricing will lead to demand collapse.

Indeed GENCOS and DISCOS are seeing a drop in consumption across board due to the higher tariffs. Nigerians are reacting both legally and illegally, by investing in alternative power, stealing more or just reducing consumption.

So this vicious cycle may prove unsustainable for electricity supply. And the tendency to pursue or close the funding gap may lead to ever higher tariffs and ever lower revenues. The business model has to be re examined, discussed or debated and a decision reached on the structure and quantity of subsidies to be paid because one thing is very clear.

The micro economy (personal, business) just cannot commercially sustain the electricity sector as it is today and the only way out is either a general improvement if the economy to raise incomes or for the power sector to find cheaper ways to generate and distribute electricity.

There are no easy answers. We are not just in between a rock, but a huge mountain and a very hard place, a vast, smouldering desert.

seunowa:
This is the reform of the federal government to decentralized electricity supply bearing fruits...kudus to Tinubu foresight

Who increased the price before? Who bought about this yeye band A, band B and band C?

nairalanda1:
Yeah..mtel was forced to charge cheap tarrifs and was beaten to the ground by mtn, glo and now Airtel

Businesses do well when government does not set their prices in the name of regulation

So why many businesses in China never collapsed ?

nairalanda1:
That's how we make the chance of getting 24 hour electricity even more remote.

The states are just copying tinubu subsidy plan for most Nigerians. At the end of the day, it's going to be reduced profits and reduced investment in generation and transmission

And we will all be the worse for it.

A business runs well when government does not set it's prices. Tinubu and the governor's seem not to get it

Make we enjoy our no light. We voted for it

Redundancy leads to rottiness, for goodness sake what brings Tinubu into this now, kindly check your brain 🧠 pls.
Everything is inflated in this country because the basic is not always enough

KillahPriest:
The matter is very simple, roll out prepaid meters massively so that estimated billing which most nepa officials use to line their pockets will be brought to its barest minimum. You have a situation where meters sit in store houses for years but they refuse distribution and gradual payments even with FG directives because of the criminality in that system. Do the right thing and see if your money will not come out

Watch as they'll turn to dodo because of this.
This is a good development if you ask me. If they insist on tariff hikes, the states should mandate them to meter all their customers. Unmetered customers should pay nada.

SmartPolician:
Discos are hoarding prepaid metres because they use postpaid billings to make up for huge losses they incur through energy losses due obsolete distribution infrastructure and theft from bypassed metres.

The bigger problem with today's Discos is that they are mostly owned by politically exposed people and their goons. That's why they are not serious about taking steps to make that business profitable.

In summary, prepaid metre cannot totally solve the problem. I have proposed that instead of having one disco for a state or region, it should be further unbundled so that every LGA will have a disco. That way, the owners can properly monitor power distribution to ensure that consumers are paying, they can upgrade obsolete distribution lines and that they have enough returns to buy more energy.

for your mind, it's ten kobo that is use to distribute electricity, the solution is transparency full stop, corruption is too much in that sector.

This is the smartest proffered solution that I've seen online. I wish this can be implemented. Very simple solution yet it will be highly efficient.




Discos are hoarding prepaid metres because they use postpaid billings to make up for huge losses they incur through energy losses due obsolete distribution infrastructure and theft from bypassed metres.

The bigger problem with today's Discos is that they are mostly owned by politically exposed people and their goons. That's why they are not serious about taking steps to make that business profitable.

In summary, prepaid metre cannot totally solve the problem. I have proposed that instead of having one disco for a state or region, it should be further unbundled so that every LGA will have a disco. That way, the owners can properly monitor power distribution to ensure that consumers are paying, they can upgrade obsolete distribution lines and that they have enough returns to buy more energy.[/quote]

adenigga:
Source: https://punchng.com/Electricity-Act-fallout-Gencos-Discos-rage-as-states-begin-tariff-cuts

I have always questioned why Band A customers should pay many times over what other bands pay. It doesn't make sense. It is outrageous.

Good move by EEDC and others. Listen to the peoples' cries.

I'm very certain Lagos state will never toll this path...price reduction is alien to the state...in the few rear occassions that tried reducing cost of BRT rate.. they ended up returning it and even increased the original cost.

Sanwo said the state is a PLC

SmartPolician:
Discos are hoarding prepaid metres because they use postpaid billings to make up for huge losses they incur through energy losses due obsolete distribution infrastructure and theft from bypassed metres.

The bigger problem with today's Discos is that they are mostly owned by politically exposed people and their goons. That's why they are not serious about taking steps to make that business profitable.

In summary, prepaid metre cannot totally solve the problem. I have proposed that instead of having one disco for a state or region, it should be further unbundled so that every LGA will have a disco. That way, the owners can properly monitor power distribution to ensure that consumers are paying, they can upgrade obsolete distribution lines and that they have enough returns to buy more energy.

So it's OK for the Discos to dump the dud on their customers laps? Whose fault is it that the distribution infra are obsolete and what exactly are they doing in business?
These guys would not invest in transformers, they won't even electrify any new neighborhood. They'll wait for the customers to do all that and start to bring bills. We all run businesses, but this is most awkward and annoying reality in the world that I know.
They should be happy they still have a job.

I'm very certain Lagos state will never toll this path...price reduction is alien to the state...in the few rear occassions that tried reducing cost of BRT rate.. they ended up returning it and even increased the original cost.

Sanwo Olu said the state is a PLC, invariably the state is full blown commercial enterprise.

Onewazobia:
Redundancy leads to rottiness, for goodness sake what brings Tinubu into this now, kindly check your brain 🧠 pls.
Everything is inflated in this country because the basic is not always enough

Very easy...the government controls or sets prices for most power consumers. The result is poor profitablity and zero investment...and poor power supply.

The state regulatory agencies are doing what the government is doing now. And it will make things worse.

Think about it. If government sets prices for any business, it will set prices that favor it. Not prices that favor the business, which would mean the business gets ruined.

At the end of the day, profts must be made in the power sector, or we won't get to 32000mw...which is what is needed for 24 hour a day power to the people on the grid right now.

Government back in the day used to set prices for things like milk and sugar and so forth...until scarcity resulted because it meant that business people could no longer afford supplier prices. Suppliers could no longer afford import costs...as the naira was slowly falling, and costs of production were rising...and for things like milk , they were imported 100%

Ten06:
We need more of these chaos. It is chaos like this that will lead to breakthrough in the electricity generation and distribution in this country. The monopoly of electricity in this country has been giving some people opportunity to milk the citizens of their hard earn money

Totally agree.
The industry remains opaque as far as financial figures are concerned. All we hear is what they want us to hear, public debts and liabilities. There isn't anyone on this side verifying anything.

silento:
So why many businesses in China never collapsed ?

Because Deng Tsiao-ping.

He essentially allowed some form of capitalism...liberalization, state companies setting their prices, etc. The result...profits, which were reinvested into industrial production and so forth, and china's rising profile.

nairalanda1:
Estimated billing happens because a large percentage of people don't pay for power.

So discos essentially rip off some consumers who do pay via estimated billing to survive financially

Metering is happening though..my.local disco is rolling out meters well well

Estimated billing only happen because customers are denied meters. Meter should be the first thing gotten when connecting to the service. That way, the customers will not feel cheated of paying more than they should. Nobody will willingly pay 20k monthly if they knew they shouldn't be paying beyond 5k

KillahPriest:
The matter is very simple, roll out prepaid meters massively so that estimated billing which most nepa officials use to line their pockets will be brought to its barest minimum. You have a situation where meters sit in store houses for years but they refuse distribution and gradual payments even with FG directives because of the criminality in that system. Do the right thing and see if your money will not come out

Lol. You no even understand wetin dey happen. It is not about billing whether it is metered or estimated, it is about the cost of power.

DeOTR:
Estimated billing only happen because customers are denied meters. Meter should be the first thing gotten when connecting to the service. That way, the customers will not feel cheated of paying more than they should. Nobody will willingly pay 20k monthly if they knew they shouldn't be paying beyond 5k

DISCOS are rolling out meters....my disco does so.

Estimated billing is a symptom of government controlling the price that 80% of consumers pay, and also the fact that at least 20% of consumers do not even pay anything at all.

When you set prices, there is going to be massive wayo wayo and wuru wuru in the system. Humans like to make money. If they can't do it legit, they will do it illicit.

Both my brother.

cenaman:
Between NEPA and NNPCL I don't know who is more corrupt.

Pascal9:
for your mind, it's ten kobo that is use to distribute electricity, the solution is transparency full stop, corruption is too much in that sector.

Discos sole responsibility is to distribute, but they're not doing that at all, leaving the responsibility to the customers or the government and waiting to reap the benefits. When was the last time you see a new transformer or extensions of high tensions wires to a new neighborhood and it's the Disco that's responsible for it?

Indebted how? Instead of fiixing the challenges in the sector FG went ahead to sell to cronies who were only interested in rent seeking , they added no value to the discos, they were recieving subventions from the cbn , very laughable for an entity that is supposed to be privatized.

How many private business owners in Nigeria receive subventions from FG or CBN in Nigeria? These thieves who acquired the discos only looted what revenues they were able to collect, they did not provide meters, transformers or poles to customers.

They only come and start billing you for services they never provide.

Its high time states take charge of power distribution and generation. They can buy turbine plants , use hydropower or even coal.

NEPA was doing well in the 70s, 80s and 90s I really dont see why we should import crooks to manage our power generation, it is a critical asset to the country without it kiss the hope of ever becoming industrialized.

Owners of these discos need to be probed for funds looted, many of them own hotels and properties abroad, they refuse to support the local producers of meters and poles preferring to import meters as a way of remitting funds abroad.

The current administrations decision to solarize its establishment is an indicator of lack of trust due to endemic corruption in the system.

nairalanda1:
DISCOS are rolling out meters....my disco does so.

Estimated billing is a symptom of government controlling the price that 80% of consumers pay, and also the fact that at least 20% of consumers do not even pay anything at all.

When you set prices, there is going to be massive wayo wayo and wuru wuru in the system. Humans like to make money. If they can't do it legit, they will do it illicit.

Stop blaming the government for estimated billing when it should be happening in the first place if the Discos are metering their customers at the time of connection. Oga, you can't use MTN service without a SIM card. Why do the Discos connect people to their service without meter? That one na still government?

nairalanda1:
Estimated billing happens because a large percentage of people don't pay for power.

So discos essentially rip off some consumers who do pay via estimated billing to survive financially

Metering is happening though..my.local disco is rolling out meters well well

It is still those on estimated billings who dont pay for power, dont you think so?

I have prepaid meter installed in my properties and i buy up to a hundred and fifty naira units in each at least every 3 to 4 months depending on usage. It is for businesses mind you.
I use light whenever there is light and still switched over to generator when there is none.

It is still those on estimated billings who does not pay their bills and still connect back thier lights through the back door when Gencos cut them off.

Houses with meter's cant afford to do so because they would be easily caught.
Enugu state Gencos are simply exposing this dishonest Gencos because monies gotten from the estimated billings always end up in the pockets of the corrupt officials.

Estimated billings is a scam!

dangermouse:
It is still those on estimated billings who dont pay for power, dont you think so?

I have prepaid meter installed in my properties and i buy up to a hundred and fifty naira units in each at least every 3 to 4 months depending on usage. It is for businesses mind you.
I use light whenever there is light and still switched over to generator when there is none.

It is still those on estimated billings who does not pay their bills and still connect back thier lights through the back door when Gencos cut them off.

Houses with meter's cant afford to do so because they would be easily caught.
Enugu state Gencos are simply exposing this dishonest Gencos because monies gotten from the estimated billings always end up in the pockets of the corrupt officials.

Estimated billings is a scam!

Yes, and there are those on meters who bypass the meters.

At the end, all you mention boils down to one fact...government is not allowing discos run on market price for power. If they did, they would have to work for their money, and that would in principle make corruption unattractive.

DeOTR:
Stop blaming the government for estimated billing when it should be happening in the first place if the Discos are metering their customers at the time of connection. Oga, you can't use MTN service without a SIM card. Why do the Discos connect people to their service without meter? That one na still government?

Ah, so you love this tinubu government, eh?

Jokes aside, when government subsidises power, that means price controls. That means, reduced profits.

So, at the end, estimated billing happens....it;s a symptom of a wider problem, not letting people set prices as they see fit, so that they can pay for improvements, expansion, gas, and so forth. All of that costs money.

Let's even talk about meters. Meters cost money, a good part of them are made in nigeria, and guess what, workers are suffering tinubulation and have to be paid better salaries. Can your disco afford to meter everyone when they are not earning that kind of profit? You see where I am going... ?.

There are many reasons why this government is not serious. Many times they take decisions that would ensure reelection, not growth and development.

This mathematics is very simple. Let each State generate their power and pay Tax to federal government simple.

SmartPolician:
The worst thing that would happen to any country is to have people who have zero knowledge of how to run a successful business heading sensitive agencies that regulate a critical industry.

If the Enugu regulator thinks that the Discos are overbilling the consumers, why not launch your own company and start giving it for free? After all, there was a time in this country when the government had MTel and we knew what later happened to the state-run telco.

You have a very valid point. I always say it, government has only little to do in terms of dictating price to private businessmen. I always say if they want to help the masses, they should float their own business and compete fiercely.
But like someone replied you, they will be run aground if they do that. But the reason for being run aground is corruption.
A sensible government can fund a company up to 80-100%, then tell them what to charge. That private company will do everything to stay profitable, and yet maintain government policy, so long as the price is fair.
The problem your country has is that the politicians, who happen to be the leaders, are wicked, demonic, corrupt, greedy, oppressive, evil,... you name it. out of 10000 of them, only about 0.2 persons may genuinely have the interest of the people at heart.

TheBizGenius:
Is it that no one here read what the post was all about?

All that Enugu Board said was that;
"Sirs, you are charging N200+ which covers your basic costs. But you are also still being paid through subsidies."

But the Gencos & Discos are saying;
"But the subsidies have not been paid for years".

Enugu Board now said;
"But it will be paid. If you are still expecting it, you shouldn't be charging it at all."

Gencos & Discos?
"People, come ooo. I won't supply you anymore".

The truth is that the current system collects enough money from the people already but their massive profits is from the N5tr subsidies they are being promised but not paid yet. But they don't deserve.

That's where the racket is.

My people, you are already paying for what you use right now!!

Know this and know peace.

When the subsides are paid, they don't cover the 10-15 trillion naira yearly that the sector needs to enable them to make improvements

Also, government revenues this year have been very very poor. Oil , which forms 80% of government revenues, has been low in price for most of the year. I doubt there would be cash for subsides.

Subsides also serve to keep the companies from going under...they don't provide enough to keep things running. And again, they do not get paid on time or paid enough. And they are not sufficent to cover expansion and improvement costs.

AntiChristian:
We are earnestly waiting for Ikeja electric!

N225 plus per kWh is too much o!

I think Ikeja electric has the best coverage in Nigeria covering a large part of Lagos mainland to many parts in Ogun state.

We do have electricity almost 24/7 now! You're sure that even when electricity goes off it will be restored within some time. Na we dey switch off appliances now!

I swear . Omo he just be like say person dey small London😂😂😂. Na when my phone reach 3 percent I dey charge. Dem don spoil me