₦airaland Forum

PresidObi:
I was also citing an example, there is no figures to back up any figures, the N100 you claim could actually be 15 naira spent and some corrupt persons are trying to collect N100 from us. No records anywhere. No transparency.

I also agree that the lack of transparency brings suspicion of price gouging. But the only antidote to this is investment to create alternatives, competition.

We have just seen this with Dangote to prove what the real price of petroleum products are. Unfortunately the NNPC has failed to ensure the race continues.

CodeTemplarr:
there is no "you people" anywhere.
It is commonsense logic.

The power that has been generated at, let's say, N100, shouldnt be hijacked and auctioned of at N50 because someone is trying to impress his constituency and turn them against the FG same time.

I was banned for innocently saying "distractions" somewhere in a foreign related thread soooooo, anything you say is right but time shall tell

naptu2:
1) Electricity has a cost. Electricity companies must buy gas, pay workers, buy equipmemt, maintain equipment, etc. Payments must reflect that cost otherwise the sector will collapse.

2) The Federal Government is paying subsidy to reduce the cost for users. Users pay less, but the Federal Government pays the difference so that electricity companies can afford to generate power.

3) The Federal Government cannot afford the subsidy. It has been owing electricity companies for a long time. When the companies complain or when service reduces (because the companies cannot afford to generate electricity) the Federal Government will quickly pay part of the debt.

4) Then Enugu State suddenly reduced tariff because it says that Federal Government is paying subsidy (subsidy that the FG is owing o!).

5) NERC has told Enugu that they can't determine tariff for electricity from the national grid. Enugu State Government must pay subsidy if it wants to reduce the tariff or they can build power plants and generate electricity themselves.

Naptu2,

You're someone I read posts and comments from anytime I come here. Awesome mind.

As much as I agree with your submissions 1, 2 and 3, I need to point out that Enugu Electricity Board said they calculated the energy rate and it came down to N4/kwh. It was in a post on nairaland.

Now, their own "silly" belief was that "If you produce at N4, selling at N160 would still make sense".

This is the major part that the gencos and discos need to refute. Or they say "Nothing concerns you with how much we are producing. We can fix any arbitrary price and you pay".

We need to ask the Enugu Board to submit to public scrutiny how they arrived at that figure of N4/kwh.

And like I said, I respect your eclectic mind that seems to balance knowledge in every sector exceptionally well. Awesome.

TheBizGenius:
Naptu2,

You're someone I read posts and comments from anytime I come here. Awesome mind.

As much as I agree with your submissions 1, 2 and 3, I need to point out that Enugu Electricity Board said they calculated the energy rate and it came down to N4/kwh. It was in a post on nairaland.

Now, their own "silly" belief was that "If you produce at N4, selling at N160 would still make sense".

This is the major part that the gencos and discos need to refute. Or they say "Nothing concerns you with how much we are producing. We can fix any arbitrary price and you pay".

We need to ask the Enugu Board to submit to public scrutiny how they arrived at that figure of N4/kwh.

And like I said, I respect your eclectic mind that seems to balance knowledge in every sector exceptionally well. Awesome.

There are two important things that you need to note about the Enugu claim.

1) They factored in the subsidy that the Federal Government pays. They admitted that the cost was greater than the tariff, but they factored in the subsidy and said that the subsidy should make the tariff less.

2) The Federal Government cannot afford the subsidy. It is owing billions (if not more) in subsidy payments.

PresidObi:
Whatever expenses claimed by the electricity companies that is not shared with us in details cannot be used to determine national costs which the states consumers will be mandated to pay.

You cannot tell me tou are subsidising electricity when we dont know the amount generated or paid for.

The state is right and wants to free other Nigerians.

God bless you real good.

This is what I have been harping on since this discussion became a national issue.

"See ohhhh. Na N50 I dey use produce this, make I show una".

It's totally crazy when someone comes and says "I am a business man who rented your space and I now charge you N50 for all the things I am doing but I won't tell you all that I am doing but I need you to believe I am doing a lot".

Especially with the fact that most young people supporting or not supporting them are not in the know about the figures being used to calculate their costs. Everyone just says "They SAID they are generating and supplying at N300 but we are paying them N200. And they are business men who are doing national projects which means their heads correct more than our own. So they must be spending that money true true".

And I said that in the creepiest drunk at the beer voice I can muster.

Somebody, anybody, should just show us the calculations.

NOTE
The product in question is a national product that, according to the constitution, has pricing that must be regulated.

naptu2:
There are two important things that you need to note about the Enugu claim.

1) They factored in the subsidy that the Federal Government pays. They admitted that the cost was greater than the tariff, but they factored in the subsidy and said that the subsidy should make the tariff less.

2) The Federal Government cannot afford the subsidy. It is owing billions (if not more) in subsidy payments.

Okay.

I understand them now.

I truly do understand the gencos and discos now. They don't want the Band A back into the subsidized B, C, D zones anymore.

Makes sense.

But where did the N4/kwh come from?

Just asking as an ignoramus ooo

TheBizGenius:
Okay.

I understand them now.

I truly do understand the gencos and discos now. They don't want the Band A back into the subsidized B, C, D zones anymore.

Makes sense.

But where did the N4/kwh come from?

Just asking as an ignoramus ooo

From the statement by the Enugu Electricity Board.

“We reviewed their entire costs, using our Tariff Methodology Regulations 2024, and the supporting Distribution Tariff Model to get an average price of N94.

“The price is low because the Federal Government has been subsidising electricity generation cost which charges only N45 out of the actual cost of N112. That was how we came about the average tariff of N94 as cost reflective tariff at our level as a subnational electricity market.

He noted, however, that the N160 Band A tariff could be difficult to sustain should the Federal Government remove the generation tariff subsidy currently being enjoyed by electricity consumers throughout the country, as tariffs would most likely rise beyond these new rates.

Read more here:

Enugu Electricity Regulatory Commission Crashes Band A From N209 To N160 Per Kwh
https://www.nairaland.com/8479485/enugu-electricity-regulatory-commission-crashes

Node911:
I think many state governors are not well informed. You get the power from national grid, then start reducing cost as if you’re the one providing the service.

No one is saying they should not reduce price for the citizens but build your own before you can do that. How do they want national grid to breakeven?

Build yours, do your proper analysis to reduce cost and this thereby translate to less price target.

So for a state like Lagos with Ikeja and Eko Electric .if a new player enters..how would they carve out or map out an area for them to service? Cos those two were just dashed Lagos and they cut us up like cake between them.
What modalities would be used to determine areas excised from Eko Electric jurisdiction?

PresidObi:
I am an Obidient, and I support private management of a country's resources, not government. I also stand against Federal government punishing the masses when state governments have a better plan.

SO, essentially, you are a communist.

Private companies cannot work when government , in the interest of making things easy for people, controls their prices to a point where they lose money.

I make this comment facing reality. It is something that has been on my mind since 2011...so forget politics.

Anything to relieve the burden of citizens will be countered

If eerc had increased the band a tarrif, nerc wouldn't buldge

Evil country

Gotocourt:
They should build their own power infrastructure. You can't reap where you didn't show👌🏿

The discos, did they build the existing infrastructure?

🤣🤣🤣

God bless the bot! God bless new Nairaland!

However, I saw the comment before the bot took action, so I can send that person to the place that he should be in.

naptu2:
From the statement by the Enugu Electricity Board.





Read more here:

Enugu Electricity Regulatory Commission Crashes Band A From N209 To N160 Per Kwh

Okay. I get it now.

It was N94 not N4.

https://www.nairaland.com/8479485/enugu-electricity-regulatory-commission-crashes

I understand better now.

I deeply apologize and I ask for the forgiveness from anyone who I had riled up with the figure I had been questioning with.

And thank you for taking the time to correct and enlighten me, naptu2.

Thank you.

Fajimarketplace:
The discos, did they build the existing infrastructure?

Hmmmm.

I feel, not think ooo, just feel this your question is going to be the benchmark going forward. At least for intellectuals anyway.

Because, as you are thinking now, they are like caretakers to my father's property which is fair for them to make money too. But if I decide I might get a better deal from another caretaker who's aggressively marketing me, how do I kick out these caretakers who my dad had an agreement with?

Won't they claim legacy agreement for which you must allow their tenure lapse?

Does anyone know when their licenses are to be renewed?

And you can't terminate until you pay their debts.

Hmmmm.

Wahala ProMax.

Gotocourt:
State governments should create their power plants and distribute their energy. The polithiefcians governors won't do that but rather start controversies 🤷

Its not the job of any state government to be building power plants. Thats what the private sector is there for!!

COMPAQ:
Its not the job of any state government to be building power plants. Thats what the private sector is there for!!

They can partner to own a business stake, they can build, sell and recoup investment. The end game is to have it not necessarily to run it as a business which is a complete no, no for me.

U