Discos Earn ₦600 Billion In Three Months Despite Blackouts - Business (3) - Nairaland
Nairaland Forum › Nairaland General › Business › Discos Earn ₦600 Billion In Three Months Despite Blackouts (4567 Views)
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by chidi2003(m): 8:50am On Jun 03 |
usecondom:Nigerians are religious and at the same time fantastically corrupt; what a hypocrisy! |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by Reference(m): 8:55am On Jun 03 |
That is about 33 naira per day or One and a half naira per hour for a population of 200 million. Ridiculously poor. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by Gerundphrase: 9:12am On Jun 03 |
20k i sub in August of 2024 hasn't finished till today. No light to use my units. I advice everyone to go get prepaid. How can you not provide services and still send out bills. Isn't that robbery |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 9:40am On Jun 03 |
DJperdurabo:No one said reality had to be palatable. In my day job, I have to tell people that in order to maintain their health they have to give up certain things they love and do certain things they hate. Welcome to life. It's never ever pleasant. Even now, I have to do things I hate, and accept some uncomfortable truths about myself, otherwise I would be paying the price later on. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 9:41am On Jun 03 |
Sheuns:Which NIgerians? Prices did not go up for the vast majority of Nigerians...infact losses from price controls are around 60-160 naira per kwh Nothing will improve unless everyone pays a cost reflective tarrif You don't have to like the idea. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by njokuuche77(m): 9:42am On Jun 03 |
nairalanda1:Prof. is absolutely right, but you are misunderstanding his point. He is talking as a GenCo (Producer), not a DisCo. GenCos cannot generate enough power because DisCos are not paying them for the energy they buy!The NERC data shows DisCos collected nearly N600 billion from us in Q1 2026. Band A is already paying a fully cost-reflective premium tariff of over N200/kWh. If the DisCos collect this premium cash from consumers but refuse to remit it to the GenCos so they can buy gas and maintain their plants, that is a DisCo management failure. So Prof. is complaining about the same DisCo inefficiency I am pointing out. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 9:42am On Jun 03 |
Swiftboy:LOL...i got my figures from reading widely. Also, companies do make prepaid meters in this country. Finally, meters are not the solutuon, when over 60% of Nigerians on meters bypass them, to get cheap power. Truth is, they say, bitter. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 9:43am On Jun 03 |
njokuuche77:Yes, and discos cannot pay them for the energy they buy because discos are not allowed to charge cost reflective tarrifs. Simple and short, and easy to understand. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by hush15: 9:48am On Jun 03 |
nairalanda1:So when they went into business, they never had intention of providing good services before? Banks recapitalized recently. Companies goes to the capital market to raise funds. So they are in business just for the fun of it. They should not worry, Nigerians have started being independent of them. It is not new. We provide everything for ourselves. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 9:51am On Jun 03 |
hush15:Yes, they raised initial funds...but you see, once the initial funds finish, they need to raise more and keep on raising more...for things like upgrades, maintenance, staff salaries, etc etc... And the money comes from......cost reflective tarrifs. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by hush15: 9:57am On Jun 03 |
nairalanda1:So let them reflect all these you mentioned on their service. If they provide light, ofcourse people will pay. Not paying for services not rendered |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 10:03am On Jun 03 |
hush15:And you want them to provide light when government is not letting them charge the kind of money that would enable them to make the money needed to provide light? Ok. o. Some of you are government supporters without realizing you are government supporters. APC is preventing the power sector from making money by forcing them to charge too low prices. And you are backing the government here. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by hush15: 10:20am On Jun 03 |
nairalanda1:Let them talk to Nigerians and let Nigerians know APC government is the one behind their darkness then. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by Jakarta: 10:24am On Jun 03 |
nairalanda1:Some band A customers funded the acquisition of electric poles, cables, transformers, and payments for disco staffs that installed these items. They bought their own meters too, and are ready to pay a cost reflective tariff of #209.50. Even after all these, these DISCOS wants these same customers to pay their bills to them without any sort of compensation, all in the excuse of "Abeg Una sorry oh, we no get enough customers wey they pay cost reflective tariff, for this light, and government no allow us to fix prize for this light". Does it makes sense to you 1 bit? I no dey make profit from the business, that na why I no fit invest inside, Ogbeni dem put gun for your head say you must do the business? |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 10:28am On Jun 03 |
hush15:The truth is, at the end, the discos have to charge cost reflective tarrifs...to provide the services you want. MTN and all of them are able to provide you with the services you want because from day 1, they were allowed to set their prices. Mtel, government owned alternative, was providing services at half the cost of MTN ,ECONET, and GLO. Mtel eventually collapsed because they could not make enough profits to improve their services. While MTN and econet were providing home internet from 2008 onwards, if not earlier, Mtel could do nothing like that. It has nothing to do with politics, and everything to do with economics. Even when the sector was controlled by government, the same issues. I will leave you with the words of Professor Barth Nnaji...who was a former power minister under GEJ (before you call him apc supporter), and an actual innovator in solutions for our power sector AND owns Geothermic , who provides light to the good people of Aba in Abia state He also emphasised the need for more cost-reflective electricity tariffs, explaining that the current pricing structure fails to cover the operational and maintenance costs of GenCos, particularly as many critical inputs are imported.SAUCE |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 10:32am On Jun 03 |
Jakarta:I want you to forget about politics, and marxist polemics. The fact is the power sector is not making enough money to even keep its bargain to band A people...that is why they too buy poles and wires....because at the end of the day, the profits are not enough to even sustain good enough supply for band A people Band A consumers only form 20% of total consumers. Any profit made from band A is overshadowed by the losses made from people in other bands, and people who do not pay (also about 20%). That;s why. Do you buy diesel, wires, and generators for MTN and all of them? No, because everyone on MTN , and GLO, and AIRTEL and so forth pays a cost reflective tarrif, which means that MTN can provide good enough service for all. Your power sector cannot because at the end only 20% of customers pay in full, if not less. Don't argue for the sake of arguing . |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by Sheuns(m): 11:09am On Jun 03 |
nairalanda1:Stop defending absurdity. As a service provider, if you want more money for your services, you must find ways to pull funds and improve your services, let the consumers see and feel a difference before increasing your charges. You do not expect the consumers to be the one to pay for a service upgrade you have not implemented. It is simple business logic applicable worldwide. Did Starlink ask consumers to pay more before offering one of the best internet services around? No, they invested heavily by sending thousands of satellites into space, allowed consumers enjoy and see the service they offer by allowing a limited time free offer and later charged accordingly. Their goal is not to make profits at once but over the span of years while offering solid services. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by hush15: 11:29am On Jun 03 |
obviously, you reading my post from a biased mind. I never mentioned politics. you brought it in. Nobody has said they shouldn't charge. you said APC government has refused them to go ahead with cost reflective billing. either way, thats is not my point but yours. my own point is service should be provided and a good service will always be paid for. Nigerians have always paid for light if there is. not that you are demanding for payment to ensure good service. After paying more and the service isn't good nko? What happens?? This mediocre thinking of payment before service should be erased from our hearts and mind. It is one the things that has brought Nigeria to its knees. That is why government do nothing for citizens too and politicians takes citizens for a ride. after voting, nothing. Remember the famous Tinubu speech on electricity! Nigerians have the opportunity to put service before payments now. If you did not provide service in your first term, why should we give you a second term and even Tinubu has attested to that So please, if anybody wants to be a service provider in Nigeria, if you know you can't provide the service, just walk away. don't start what you can't provide for and be demanding compensation. nairalanda1: |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by SmartPolician: 11:34am On Jun 03 |
JASONjnr:Governors won't invest in power because power projects cost millions of dollars. Tinubu is only running away from his responsibility by asking state governors to manage power. I have repeatedly mentioned here that what would've worked was a joint project among federal, state and private sector...the same thing NNPC does. Sadly, the dumbest of us have been hired to destroy this country with SENSELESS supporters hailing them every day. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by SmartPolician: 11:39am On Jun 03 |
hush15:For the emboldened text, please talk about yourself only. 75% of Nigerians cannot afford to be on Band A That's why the discos designed the band plan to suit people based on affordability. Nigerians bypass their metres and discos run at a loss. You can open the link below to understand what I mean. https://www.google.com/amp/s/punchng.com/maiduguri-residents-protest-against-uninterrupted-electricity-supply/%3famp |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 12:12pm On Jun 03 |
hush15:Right, so how do you think your local trader, barber, gas supplier, electricitan, MTN and ECONET, and so forth have been providing you service? Ah yes, according to you they have a magic bag of money which they dip into when they need the money, while you pay them one quarter of the cost for their service. Or the traders who sell you stuff go to the capital market to raise money so that they can keep on selling you stuff at half the price. Tell me, are you really an adult? Do you guys who are arguing with me actually live in the real world.? Good afternoon. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 12:13pm On Jun 03 |
Sheuns:Ah yes, you must find funds by magic, since you are losing money because people are underpaying you for your service. I honestly don't know if some of you went to school , because it's getting out of hand. Perhaps I'll just accept the simple explanation Occam's razor gives me, and admit your comment is just your idea of being funny. Cost relfective tarrifs, or bad service. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by missionmex(m): 3:11pm On Jun 03 |
nairalanda1:It is not scanty for darkness oh |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 3:27pm On Jun 03 |
missionmex:It is scanty. We need, according to the experts, not government, investments of 10-15 trillion naira yearly for at least 5-10 years to give light 24/7 to everyone connected to the grid. Connected to the grid, not those who are off it. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by missionmex(m): 6:37pm On Jun 03 |
nairalanda1:What I am saying is that with the light they are giving us they should not expect more than what they are getting. If they want to get more money they should invest more. Shikenan. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by Jakarta: 9:02pm On Jun 03 |
nairalanda1:So because there are only 20% customers who pay in full gives DISCOS the moral justification to steal from those same 20% customers that are paying in full? Telecoms companies invested billions of $ when they started even though their users base was still very low then due to high service cost, but they first took the risk of investing heavily into their business, unlike DISCOS that are ready to invest a few millions, but wants to reap billions. Your argument of government not giving DISCOS the freedom to control true service cost doesn't hold water, because the government still play a crucial role to these DISCOS, and the monopoly they enjoy is not there in the telecoms sector. Government still provided needed infrastructure for these lazy and greedy DISCOS. The government evacuates power from GenCos via huge steel towers and high tension lines which were installed and still being maintained by same government, stepping same power down at regional substations, from which DisCos want to make all the gains in the world by stealing from paying customers. As a resident in Edo or Delta state, your only access to connect through to the nation grid is through BEDC, there are no any other options True/False? Is there any monopoly of sort in the telecoms sector? Do you really think if DisCos are ready to invest in improving their services, and outreach they won't get more than enough customers who are ready to pay cost reflective tariffs? |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 9:00am On Jun 04 |
Jakarta:Your first paragraph shows you do not understand how buisnesses work, and how companies work, and how the profit system works. The problem with discos is they cannot make enough profit thanks to government rules and regulations that prevent them from setting their prices...to even give band A people enough power. It's because you guys want the government to give you cheap power, even if it means taking loans, that you cannot see that forcing a company to operate at a loss in the name of cheap power is not going to get you good enough service. You cannot operate a good enough business when most of your customers are underpaying. It's the harsh bitter truth, and you don't have to like it. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 9:04am On Jun 04 |
missionmex:Invest with which money? It's like you guys live in some sort of world where you think that companies can magically obtain money like that from some magic money tree? Seriously man, did you really do economics at high school? Some of you really leave me astonished. Again, no company can attract investment if it is being forced to operate at a loss. Investors will not come, and the company will suffer Plus if you think that companies come with enough money to build stuff for you from the word go, that's not how it works. Take Dangote refinery...if your commentary is right, Dangote would have paid for his refinery construction from his own money. He could not, he had to get loans from private banks and the government. And to pay back those loans, that's why subsidy had to go. Otherwise, the refinery would have been operating at a loss, and he won't be able to pay back the loans. Seriously, I don't like blocking people, but damm...the lack of knowledge I see here sometimes... |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by Jakarta: 12:20pm On Jun 04 |
nairalanda1:You clearly don't know anything about running a business. According to you a good majority of users, don't pay cost reflective tariffs, no thanks to the government stopping DisCos from implementing a 1 cap fits all true cost reflective tariffs pricing system. But are those already paying same cost reflective tariffs getting what they are paying for? As a band A user I pay cost reflective tariff of #209.50 per unit, a band E user pays #40.50 but neither me, nor the Band E user is getting what we pay for. And the person we are paying to is busy complaining that he is not even getting anything out of the business, but ogbeni refused to close the shop even though he is running at loss according to him. If as a business owner you are not making profits due to a good majority of your customers not paying the supposed cost for the service you're rendering, what stops you from prioritising those customers that pay your proposed price for your service? Why not improve and maintain the quality of your service to your profitable customers? Such an act can even bring in more high paying customers. If I wanted cheap electricity should I be performing the core duties of DisCos? That's childish of you I must say. Power is not cheap that's a fact. The man fueling his generator for electricity, is even spending more money than a band A user paying #209.50 for 1 unit of electricity. Last night my neighbour bought 10k fuel just to power his refrigerator, fans, and few other household electrical appliances, as I write this, his generator's fuel tank is empty, but from last night till this very moment there is still power in my apartment and I'm yet to even spend 5k on same electric appliances. If the true cost reflective tariff is #231.79/kWh, a band A user is paying #209.50, while the government pays the remaining #22.29 should same band A user be erecting poles, buying meters, buying transformers and cables for DisCos? In my area in Delta state, so many people are ready to join band A but they can"t due to the high connection cost. A private business man bought electric poles, wires, transformers, and connected the Band A lines from BEDC's office to his residence. He then charges whoever that wants to connect the light 1M naira. That high connection cost is what people can't afford, what then is the core functionalities of an electric distribution company if you can't even distribute same electricity to your customers? A private business is now doing it and extorting others for it. Is the distribution company not failing woefully here? You want to collect cost reflective tariff for electricity, but you can't even bring same electricity to those that need it. This shouldn't be too hard for he who is not a kid to understand should it? |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by nairalanda1(m): 12:33pm On Jun 04 |
Jakarta:Nope, you don't You think a business can survive when government is forcing them to sell below production cost. LOL...I am done here. Some of you guys need to hand back that certificate....school just passed through you. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by Gentlelife50(m): 9:13pm On Jun 04 |
njokuuche77:I am sure that guy isn't a Nigerian because he is always talking out of reality. |
| Re: Discos Earn ₦600 Billion In Three Months Despite Blackouts by Jakarta: 11:24pm On Jun 04 |
Gentlelife50:That's how he is, @nairalanda1 is a deluded Nigerian. |
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