₦airaland Forum

https://www.nairaland.com/8695228/why-power-supply-may-never#139786367

This is a counter thread to the above linked thread by nairalanda1.

If the companies are running at a loss, has anyone sold his or her company?
Why subsidize power from their pockets. Don't tell me they are using their private money to subsidize a whole sector? Never.

Truth is power company owners want killer profits before they use a fraction of the huge profit to improve the system.

Thank you for this intelligent question. The distribution companies are a conduit pipe that milk government and the people.

This is where civil society and activist need to beam their searchlight

Discos are extortion companies and not a power distribution company

Very soon all the distribution companies and the whole electricity sector will collapse and end up like Nitel because Nigerians will start generating their power through solar and there will no longer be revenue to collect

I tire bro, business is running at loss, close the business I say no, I prefer investing #100m and losing #20m. Does it makes sense, if the government is forcing pricing templates on you, what stopped you from shutting down? Workers go on strike for low pay, what stops them from going on strike?

The fact is there is heavy corruption in the power sector, and the distribution companies are making a huge killing from it. The current status of the power sector is favouring distribution companies heavily.

This is how it works in major cities in Delta state. If you need Band A, you go to the Benin Electricity Distribution Company (BEDC), you buy electric poles, wires, transformers, and meters, then pay their staffs to install these items. If any anybody in your area comes to you for same electricity, you charge them they pay you, they buy their own electric poles, wires,meters, and pay BEDC staffs for installation. They all pay cost reflective tariffs to same BEDC, is this not broad day light robbery from BEDC? Person go open WA begin cap nonsense.

Ttalk:
Thank you for this intelligent question. The distribution companies are a conduit pipe that milk government and the people.

This is where civil society and activist need to beam their searchlight

Discos are extortion companies and not a power distribution company

This is not an advocacy issue but market economics. @OP as long as government is maintaining subsidies and also continues to be active player in the sector no power sector player will have the incentives to raise capital to fix the problems. There’s no certainty of recouping any investments made in to the system with the current setup.

The criminals are not running at any loss , if they were their owners wouldn't be buying new jets every new yam festival

Ttalk:
Very soon all the distribution companies and the whole electricity sector will collapse and end up like Nitel because Nigerians will start generating their power through solar and there will no longer be revenue to collect

Believe you me that can never happen in the foreseable future. Reliable solar power is very expensive. There are people in my street who spent millions in installing solar power, last last them still run come join us for band A.
The government needs to completely leave power generation and distribution to private businesses. They should formulate and implement policies, just like what we have in the telecoms sector.

lionshare:
This is not an advocacy issue but market economics. @OP as long as government is maintaining subsidies and also continues to be active player in the sector no power sector player will have the incentives to raise capital to fix the problems. There’s no certainty of recouping any investments made in to the system with the current setup.

There no problem in power sector, what we have is sabotage, rips off and lack of sincerity on the players

Ttalk:
There no problem in power sector, what we have is sabotage, rips off and lack of sincerity on the players

Really? So why is the same not present in the telco sector?