₦airaland Forum

You know how many time I had to tackle those BEDC people for the nonsense estimated bills they sent to my house even when the know my meter s working and they NEVER came to check it.?!

Then why can't it be more black out since they are earning billions without giving light

njokuuche77:
Your GSM example actually proves my point. In the early days, if MTN charged you N50, you actually made a call, the service worked, even if it was expensive. You did not buy a recharge card only for MTN to give you "zero network" for three months and then tell you to buy more cards so they can build a mast. GSM investors brought their own billions to build the network; they didn't rely on customers to fund their initial setup. DisCos want the profit of GSM without putting in the work or the capital.

No it does not.

In the early days service was bad. Missed calls, you could not call between networks and coverage was limited.

It was because they were allowed to.charge high prices without government intervention that they were able to make the profits needed to improve service

Our power sector has never been allowed to charge prices without government intervention.

Plus crucially you cannot make calls on your phone without paying. The power sector has the disadvantage that a lot of customers bypass their meters or refuse to pay for the power they use, which in addition to price controls impacts their profit

So,you ain't correct

The only thing that will solve Nigeria problem is banning expected billing

njokuuche77:
You say 20% of customers don't pay, so why should the metered Band A minority be punished for that? If a shop owner lets people steal 20% of his bread, he doesn't double the price for the honest customers who actually pay. That is bad business. The DisCos’ inability to stop energy theft or provide prepaid meters to everyone is their operational failure. The common man who pays his bill should not be used as a financial scapegoat for a DisCo's incompetence.

Because since most customers are underpaying , the discos cannot make enough money to supply band A customers according to the terms of service

It's like you are arguing for the sake of arguing and obviously ye have never run a business.

If your business was patronised by customers, most of who underpaid you or refused to pay even, would you be able to offer full service to those who pay in full?

You won't answer my question because you know I'm right

DiamondsAreFore:
https://punchng.com/discos-earn-n600bn-in-three-months-despite-blackouts/

These are just exploiting Nigerians unrepentantly

nairalanda1:
Because since most customers are underpaying , the discos cannot make enough money to supply band A customers according to the terms of service

It's like you are arguing for the sake of arguing and obviously ye have never run a business.

If your business was patronised by customers, most of who underpaid you or refused to pay even, would you be able to offer full service to those who pay in full?

You won't answer my question because you know I'm right

Since you mentioned running a business, let me give you a free consultation based on my professional experience running a business and consulting for others. Band A is based on a business model called "ring-fencing." The agreement is that their premium tariffs directly fund their specific feeders to guarantee 20 hours of light.If a business collects premium funds for a specific service, fails to deliver, and uses that money to cover losses in another department, that is called financial mismanagement and breach of contract. You cannot look at a paying client and say, "I didn't give you what you bought because my other clients didn't pay me." No serious business survives like that.

njokuuche77:
Since you mentioned running a business, let me give you a free consultation based on my professional experience running a business and consulting for others. Band A is based on a business model called "ring-fencing." The agreement is that their premium tariffs directly fund their specific feeders to guarantee 20 hours of light.If a business collects premium funds for a specific service, fails to deliver, and uses that money to cover losses in another department, that is called financial mismanagement and breach of contract. You cannot look at a paying client and say, "I didn't give you what you bought because my other clients didn't pay me." No serious business survives like that.

The problem is , the losses made from other sectors overwhelm your ring fence

Besides I am arguing that the only way we can get power for everyone 24 seven, is by cost reflective tarrifs.

Good morning

nairalanda1:
Which is what every business does around the world, you know.


Plus the discos have their hands tied by price controls and poorly paid subsides . Even recently government refused to pay them.half of the six trillion they owe them.

So you suggest we pay first?

We know it costs something to get good service but here, the complaints remain paying and not getting anything.

If they have power in place, I assure you, people would willingly and happily pay whatever charges is agreed on.

But no. You Mr nairaland1 always seem to be against people for complaining of things not being done right.

I no just understand you.

Those who employ solar systems and other alternatives, do so as they're confident of getting their money's worth. It's just like opening a business and expecting customers to pay first before you could serve them better. That na nonsense na. Abi I no dey see wetin you dey see?

njokuuche77:
Since you mentioned running a business, let me give you a free consultation based on my professional experience running a business and consulting for others. Band A is based on a business model called "ring-fencing." The agreement is that their premium tariffs directly fund their specific feeders to guarantee 20 hours of light.If a business collects premium funds for a specific service, fails to deliver, and uses that money to cover losses in another department, that is called financial mismanagement and breach of contract. You cannot look at a paying client and say, "I didn't give you what you bought because my other clients didn't pay me." No serious business survives like that.

Also Prof Nnaji, who owns Aba disco stated last year that the lack of a cost refiective tarrif prevents gencos from meeting up with maintenance and upgrades costs and other costs.

That in turn prevents them from generating enough power for all, including band A.

He's the expert.

no

correctguy101:
So you suggest we pay first?

We know it costs something to get good service but here, the complaints remain paying and not getting anything.

If they have power in place, I assure you, people would willingly and happily pay whatever charges is agreed on.

But no. You Mr nairaland1 always seem to be against people for complaining of things not being done right.

I no just understand you.

Those who employ solar systems and other alternatives, do so as they're confident of getting their money's worth. It's just like opening a business and expecting customers to pay first before you could serve them better. That na nonsense na. Abi I no dey see wetin you dey see?

So let's keep on underpaying the power sector

Abusing me doesn't change facts that underpaying a company leads to poor service

Better smell the roses

nairalanda1:
The problem is , the losses made from other sectors overwhelm your ring fence

Besides I am arguing that the only way we can get power for everyone 24 seven, is by cost reflective tarrifs.

Good morning

You are ignorantly supporting your oppressors

Thanks to those who pay estimated bills. Una go pay tire.

gratiaeo:
You are ignorantly supporting your oppressors

Right. So underpaying a business means that the business will do well for your opinion

Okay

Sometimes I wonder...

nairalanda1:
no

So let's keep on underpaying the power sector

Abusing me doesn't change facts that underpaying a company leads to poor service

Better smell the roses

Come on, I'll be the last to abuse anybody, especially online. I prefer forgetting a bullet in the skull

But no be joke brother. Na our money dem wan use improve their service? This is not some road side canteen na. Where they request for money first because too many has escaped after eating...

Na serious government matter be this. The government should even remove ther dirty pilfering hands from the matter and encourage private investment in with tax cutoffs or something...

Why make the people suffer darkness, then pay and after squandering all the little given them, they'll turn and blame the people for paying too little. It makes no sense to me.

Or just give me a real world example where it's done like how you say. Where the power only improved when more money is paid. I know it's always the opposite. Things improve and people pay for the improved situations...

Abi, na me and their papa get the company?

nairalanda1:
Before anyone shouts,.the actual amount of money needed to improve power supply is....10 trillion or more annually for at least 5 years.

That 600.billion divided among nine companies is very scanty

But that doesn't imply the should put the cart before the horse. You provide good service, you get paid. Not pay to get good service

nairalanda1:
And you cannot ask a company to charge for its services at a price below what it costs to provide those services. It will not be able to do so efficiently

Plus all of you paid for the poor GSM services in the early days of MTN and Econent when at one point you could not call between network. With high prices. It was because of that that the GSM were able to make enough profits to improve things. Same thing happening in the petroleum sector

Power sector has historically had most people underpaying for power and even now band A that pays full price are a minority. And at least 20% of customers do not pay

So what do you expect?

It's like expecting a 17 year old who has not eaten well in weeks and is malnourished to pass JAMB with a score of 400

Must you support the inefficiency of the system just because of ethnic or political sentiments?

Rapmoney:
Must you support the inefficiency of the system just because of ethnic or political sentiments?

So saying that a company must be paid at the price it sets , not at the price government sets is supporting ethnic issues

Oga , I supported the privatisation drive of the PDP government. At the time I thought that the power companies were allowed to set their prices. I didn't find out until later that they were not allowed to.

Plus supporting the price controls , as you seem to do, means you support APC.

hush15:
But that doesn't imply the should put the cart before the horse. You provide good service, you get paid. Not pay to get good service

And how do you provide good service without enough cash to do so?

ok.o.

correctguy101:
Come on, I'll be the last to abuse anybody, especially online. I prefer forgetting a bullet in the skull

But no be joke brother. Na our money dem wan use improve their service? This is not some road side canteen na. Where they request for money first because too many has escaped after eating...

Na serious government matter be this. The government should even remove ther dirty pilfering hands from the matter and encourage private investment in with tax cutoffs or something...

Why make the people suffer darkness, then pay and after squandering all the little given them, they'll turn and blame the people for paying too little. It makes no sense to me.

Or just give me a real world example where it's done like how you say. Where the power only improved when more money is paid. I know it's always the opposite. Things improve and people pay for the improved situations...

Abi, na me and their papa get the company?

The only way investment is going to flow in is by cost reflective tarrifs being allowed and by government acting against people who do not pay for the power they use

Otherwise no investor is going to come in and lose his money because most people are not paying above production cost for power, even with tax cut sweetener.

Most of the companies in Nigeria that work work because government does not tell them the price they must set for product

Please my advice to nigeria and nigerians
Please avoid hungry politicians
Please they can do do or die politics

nairalanda1:
Before anyone shouts,.the actual amount of money needed to improve power supply is....10 trillion or more annually for at least 5 years.

That 600.billion divided among nine companies is very scanty

Your investment requirement is low by 1/3. N50 trillion is approximately $36 billion. What's actually needed over 10 years is $100 billion, or N136.5 trillion. That's for the target of 200 gigawatts to serve Nigeria's energy needs and export. Currently we're below 5 GW.


Of course, this is based on an energy mix of mostly thermal and hydro and does not include renewable sources.

The headline makes it seem like the 600 billion is for the DisCos. It's actually market settlement; the DisCos operate at a loss and receive 50% OpEx only (for those insulting the DisCos).

A lot of the shortfall is due to uncollectible revenue, including technical losses (energy radiated as heat from bad conductors beyond natural resistance, as well as reactive energy), commercial losses (energy theft and billing inadequacies) and collection losses (delinquent consumers and fraud).

We're a long way away from any meaningful recovery of the sector.

Paying for darkness, what a nation or we call it failed state?

nairalanda1:
Before anyone shouts,.the actual amount of money needed to improve power supply is....10 trillion or more annually for at least 5 years.

That 600.billion divided among nine companies is very scanty

Where did you get your figure from?
It's not rocket science.
1. Let there be companies manufacturing prepaid meter in the country. This ensure every house hold have prepaid meter! Not necessarily free of charge but people don't have to pay upfront fee.
2. The prepaid meter must come with a software that will make it impossible to steal energy or manipulate the meter.
3. National grid must be phase out. The disco should be allowed to also generate their power with loan from banks under a power generating scheme supervised by the NERC.
All these is only possible with a corruptless patriotic government.
Government have no business doing business, let the companies be well monitored and if they don't perform, Chase them away. Simple and plain.

It's not rocket science.
1. Let there be companies manufacturing prepaid meter in the country. This ensure every house hold have prepaid meter! Not necessarily free of charge but people don't have to pay upfront fee.
2. The prepaid meter must come with a software that will make it impossible to steal energy or manipulate the meter.
3. National grid must be phased out. The disco should be allowed to also generate power with loan from banks under a power generating scheme supervised by the NERC.

All these are only possible with a corruptless patriotic government.
Government have no business doing business, let the companies be well monitored and if they don't perform, Chase them away. Simple and plain!

Brendaniel:
Well, here it is for those who still plan to support Tinubu in 2027

They would tell you they are having light in their area and that 1 hour light per day is good for Nigerians

njokuuche77:
You cannot ask a customer to pay for a product you did not deliver just so you can "improve" your business. If a restaurant serves you empty plates, do you pay them so they can buy better ingredients tomorrow? No. The report shows the power plants only got 43% of the gas they needed. Why should the common man pay 100% of the bill, and high tariffsfor 43% performance? Profit follows value, not darkness.

Preach!

njokuuche77:
You say 20% of customers don't pay, so why should the metered Band A minority be punished for that? If a shop owner lets people steal 20% of his bread, he doesn't double the price for the honest customers who actually pay. That is bad business. The DisCos’ inability to stop energy theft or provide prepaid meters to everyone is their operational failure. The common man who pays his bill should not be used as a financial scapegoat for a DisCo's incompetence.

Preach!!

njokuuche77:
Your GSM example actually proves my point. In the early days, if MTN charged you N50, you actually made a call, the service worked, even if it was expensive. You did not buy a recharge card only for MTN to give you "zero network" for three months and then tell you to buy more cards so they can build a mast. GSM investors brought their own billions to build the network; they didn't rely on customers to fund their initial setup. DisCos want the profit of GSM without putting in the work or the capital.

Preach!!!

nairalanda1:
Which is what every business does around the world, you know.


Plus the discos have their hands tied by price controls and poorly paid subsides . Even recently government refused to pay them.half of the six trillion they owe them.

As a business, you have to improve your services before asking customers to pay more.

After Adekanbi said Nigerians have to pay more tariffs to enjoy better services, did Nigerians enjoy better services?

@nairalanda1, while your arguments holds water, your insistence on not seeing the point of view of others with contrary view (which are quite legitimate) is a problem.

You speak from an "academic" standpoint. In affairs of state & economy and even business for that matter, this view is NOT always the best given nuances ocassioned by extant conditions, developments etc. This "grey line" (you are refusing to acknowledge) is the rampart most of the opposing views take leap from.

To TRULY solve a national problem (of whatever nature), it takes more than academic truth hence you see committees being set up, conferences being convened etc. I can guarantee you that even if you throw a gazillion dollars into the electricity fray, it will NOT solve the issue like you academically think it would.