₦airaland Forum

The problem with the power sector.


The main problem is that people are exiting the grid and if high consumers that pay a lot are not on the grid then it is a matter of time before power generation and distribution becomes unsustainable as economic activities. If there are not enough customers to pay for power generated then power generation will not continue. Restaurants, small businesses, hotels and even factories are now going off grid permanently and that is revenue loss for companies in the sector. In other countries, I don't think people are allowed to exit the grid. Whatever you generate as an entity must go to the grid after which it will be sold back to you.

Power generating companies are making claims that the FG is owing them and the FG is denying these claims and are not paying. The companies therefore have no money to pay gas suppliers. The system that the power companies must be paid for whatever they generate is not sustainable or it is counter productive. It is prone to fraud too.

What is now the solution?. If no other entities are investing, then government at all tiers must invest in power generation and it has to be hydro and solar because gas is expensive and there is no sufficient infrastructure for its evacuation to the point of use. The problem is that power generated must be paid for and there are not enough consumers because the heavy consumers are now off grid. Most of the power is therefore wasted and many consumers are also unmetered.

If you have money as an individual, use it to install solar or hydro for your community the same way it is in Aso rock. You are not likely to lose money. Geometric in Aba is gas fired. Redemption camp is independent and as bad as things are they are not losing money. You will make money especially if you are also in charge of the distribution. All government tiers must be involved in this. Solar panels are now being manufactured in the country and there are some potential for hydro as well as wind.

I will not say every consumer should be forced back to the grid as even Aso Rock may not agree but with aggressive investment in solar, hydro and wind, it can be possible to easily solve the problem. Even ten hours a day will be a big improvement. Solving the problem is just doing on a large scale for the community what individuals are already doing for themselves

What the FG can do for now is to temporarily raise tariffs to offset the debts to the GENCOs then aggressively begin to invest in power generation and the decentralization of the power grid so that tariffs can be much lower

How can people exiting the grid be a problem
Is the grid able to serve everyone before?

People are exiting the grid to where exactly...?


Who and who did you see exiting the grid?

Ojuntana:
How can people exiting the grid be a problem
Is the grid able to serve everyone before?

Anybody not connected to the grid is revenue loss and it is the part of the reason distribution companies can not recover the money to pay generation companies

brain54:
People are exiting the grid to where exactly...?


Who and who did you see exiting the grid?

Most big businesses are not connected to the grid at all. Small businesses like hotels, restaurants and etc are following. In a few years at this rate, only poor people with low consumption will remain on the grid

lawani:
Anybody not connected to the grid is revenue loss and it is the part of the reason distribution companies can not recover the money to pay generation companies

What revenue loss? They want to bill us for darkness?

CaptainGo:
What revenue loss? They want to bill us for darkness?

The main problem is that the gencos are claiming money that the discos were not able to recover. A contributory factor to that is that heavy consumers are off grid though it is not enough explanation.

The only thing that can be done for now is to temporarily raise tariffs to offset the debts then aggressively invest in generation and the decentralization of the power grid

lawani:
Anybody not connected to the grid is revenue loss and it is the part of the reason distribution companies can not recover the money to pay generation companies

Did the grid capture everybody before?
The power generated by the grid cannot go round. That's a known fact

lawani:
The main problem is that the gencos are claiming money that the discos were not able to recover. A contributory factor to that is that heavy consumers are off grid though it is not enough explanation.

The only thing that can be done for now is to temporarily raise tariffs to offset the debts then aggressively invest in generation and the decentralization of the power grid

I am not in support of raise in tariffs.We are stretched economic wise and burdened seriously.They should think outside the box.There are places that are connected to receive electricity supply but are starved of electricity for no justifiable reason and there are places that have need for electricity supply but there has been no move to connect them to receive electricity supply

Incorporating more consumers on the electricity supply chain should have been done and also upgrade of electricity supply and distribution facilities should have been taken as top priority because most the facilities need serious upgrade with the teeming population we have now.