₦airaland Forum

erico2k2:
Get sense, the idea was perfect but the DICOs and GENCOs are Devils, they want profit but do not want to invest.like the telecoms are investing.

Who sold to these unserious discos and gencos ? Was is not Jonathan? If OBJ had sold to weak Unseriouse telecom operators then the same would have happened with telecoms. Only if u knew how useless Nitel was before OBJs privatisation u would understand.

SnowJay92:
Were the multinational telecoms company owned by the government at any time since they set foot in this country?

No. They were private companies.

Max24:
No. They were private companies.

So what were you talking about?

SnowJay92:
So what were you talking about?

What are u driving at?

Max24:
What are u driving at?

The problem of Nigeria has always been with the system, obasanjo's era wasn't any better, do you know for how long he ripped Nigerians off thru those telecoms before things normalized? GEJ may have been the worst of them all or perhaps he's just the scape goat that things to a saturation point under his watch, but things have been bad all along. We need to understand that before we can start looking for solutions to our problems,

Max24:
Who sold to these unserious discos and gencos ? Was is not Jonathan? If OBJ had sold to weak Unseriouse telecom operators then the same would have happened with telecoms. Only if u knew how useless Nitel was before OBJs privatisation u would understand.

Either you are to naive or just plain arrogant to understand waht you are saying.you think the seller has control over how the buyer runs its Biz if appropriate laws are not put in place? seriously??

SnowJay92:
That's because they're seeing the power na. Had it been there govt connives with power companies to force them to pay for darkness, they'd not feel that way.

well thats waht the FG should do right about now.Mandate them to install PYG metrs and see if they dont improve,The GENCOs would even invest in new power station of thier choice with no kpem frm FG

Nigeria that cannot generate up to 4000 MW suddenly has 10,000MW to give to DISCOs?

This is why government news is always funny.

Max24:
Thank God that the privatisation of telecoms happened under OBJ. If it had been done by Jonathan he would have messed that up too the same way he messed up the sale to discos. At least d telecoms privatisation under OBJ is more stable than Jonathan's power privatisation.

Indeed you are right. Especially when one remembers that the 1st GSM licenses to be sold in Nigeria were by General Sanni Abacha in 1998 to four companies who were all eventually proven to belong to Abacha himself! Lucky us as a country that Abacha died soon enough to make it possible for the next administration to cancel the deal.

The DISCOs and GENCOs that our power assets were sold to are all crony companies which are all nothing more than SPVs to own and collect rent on the assets. We are done for as a nation which desires regular electricity if something is not done to wrest these assets from these charlatans.

Max24:
why is that so?

cost of production...anything you produce you minus cost of electricity perfectly which is very costly otherwise, you lose. Some places you are not even allowed to install solar panels in large quantity. They wish they never had prepaid meter that counts these kw perfectly. Its as if they are running generator though not Nigerian generator.

ifeanyi317:
based on the frequency which goes both ways

I don't understand what you are saying .

erico2k2:
Either you are to naive or just plain arrogant to understand waht you are saying.you think the seller has control over how the buyer runs its Biz if appropriate laws are not put in place? seriously??

actually , the seller can have control over how the buyer operates an asset. It depends on the clauses in the sales contract .

ExInferis:
So if I'm in Benin i have the option of "subscribing" with Yola Disco?

very possible in Nigeria even with our broken system, but of course the discos won't cooperate, they are enjoying the monopoly.

thecommunist:
very possible in Nigeria even with our broken system, but of course the discos won't cooperate, they are enjoying the monopoly.

You don't know much about the industry then. NESI is among the most regulated industries in Nigeria. So the monopoly they enjoy, as you put it, is the consequence of the policies of Ministry of Power.

Also, no one will be foolish enough to invest in such a rotten sector when the current crop of investors are doomed to fail. The tariff you pay was not properly sculpted to even break even, talk more of spinning a profit.

Customers are anti-disco, government is anti-disco, regulator is anti-disco, Nass is anti-disco....the only ones who have any sympathies for the plight of the business owners are the owners themselves.

So unless the proper tariff model is implemented, and the hostility towards the industry is mitigated, no one will invest in the sector.

ExInferis:
You don't know much about the industry then. NESI is among the most regulated industries in Nigeria. So the monopoly they enjoy, as you put it, is the consequence of the policies of Ministry of Power.

Also, no one will be foolish enough to invest in such a rotten sector when the current crop of investors are doomed to fail. The tariff you pay was not properly sculpted to even break even, talk more of spinning a profit.

Customers are anti-disco, government is anti-disco, regulator is anti-disco, Nass is anti-disco....the only ones who have any sympathies for the plight of the business owners are the owners themselves.

So unless the proper tariff model is implemented, and the hostility towards the industry is mitigated, no one will invest in the sector.

never for once did I claim knowledge of the inner workings of that industry.
That being said, the discos found themselves in such unsavoury position because they are not honest. They didn't come into the business with the aim of doing honest work, they too were out to take advantage of the rotten state of affairs to rip us off. That is why they so love estimated billing.

thecommunist:
never for once did I claim knowledge of the inner workings of that industry.
That being said, the discos found themselves in such unsavoury position because they are not honest. They didn't come into the business with the aim of doing honest work, they too were out to take advantage of the rotten state of affairs to rip us off. That is why they so love estimated billing.

You're absolutely wrong that discos love estimated billing. This is because in most cases lots of customers are actually underbilled, so discos lose energy they've to pay for. Are you even aware that they pay for every single watt of power consumed whether or not customers pay?

Every disco prefers to meter their assets and customers so they can properly account for the energy TCN sends them. Also, billing is postpaid and a credit; metering is prepaid and is cash upfront. Now tell me what smart businessman would want to run his business on estimates and credits when we know nigerians are among the most recalcitrant debtors out there.

But then again, customers don't want estimated billing and also don't want to be metered: customers simply prefer free energy, or the leeway to pay what they wish irrespective of the quantum of energy they consume, conveniently forgetting energy is a commercial product to be paid for in full like most commodities in the market.

thecommunist:
I don't understand what you are saying .

they use frequency to balance the load i.e the higher the frequency the more load is required. lower the frequency the less load required.

Max24:
They will keep passing d blame among themselves. Bottom line is d arrangement is not working- and Jonathan that put together d failed arrangement should be blamed.

the govt are to blame for not meeting up to the arrangemnet of pumping money into the disco and Genco as proposed in the privatization contract

ExInferis:
You're absolutely wrong that discos love estimated billing. This is because in most cases lots of customers are actually underbilled, so discos lose energy they've to pay for. Are you even aware that they pay for every single watt of power consumed whether or not customers pay?

Every disco prefers to meter their assets and customers so they can properly account for the energy TCN sends them. Also, billing is postpaid and a credit; metering is prepaid and is cash upfront. Now tell me what smart businessman would want to run his business on estimates and credits when we know nigerians are among the most recalcitrant debtors out there.

But then again, customers don't want estimated billing and also don't want to be metered: customers simply prefer free energy, or the leeway to pay what they wish irrespective of the quantum of energy they consume, conveniently forgetting energy is a commercial product to be paid for in full like most commodities in the market.

They actually love estimated billing. This is their easy way out of doing the actual work.
Instead of them to up their game by better monitoring of their consumers making sure that people are correctly billed, they prefer to stay in their office and use estimated billing to even out their revenues.
I know they need to balance up , but they should be creative .
No matter what , they should be able to distribute and know who uses what and be able to get them to pay.
Indeed Nigerians are not willing to pay, but that is because they feel they are being shortchanged by the discos in the first place-which is true in most cases !

ifeanyi317:
they use frequency to balance the load i.e the higher the frequency the more load is required. lower the frequency the less load required.

you mean automatic generation control? It is used when the gap between power output and load is not very wide,its more of balancing power output and load.
If the gap is very wide like for instance there is a major fault on the transmission line to a large region or area, such that the transmission needs be shut down for maintenance, the AGC cannot work, some or all part of some generating station will have to shut down.

ifeanyi317:
the govt are to blame for not meeting up to the arrangemnet of pumping money into the disco and Genco as proposed in the privatization contract

Its like u are working for the discos. what pumping money again? Did govt give money to the telecoms companies after selling licences to them? - mind u the telecoms licences were way expensive than the power licences. Obj made a lot of money thru the sale of telecom licence. I remember Glo almost lost out because they couldn't raise d fees initially. But Jonathan gave out the discos almost for nothing yet they cannot invest waiting to use OPM to do business.

Max24:
Its like u are working for the discos. what pumping money again? Did govt give money to the telecoms companies after selling licences to them? - mind u the telecoms licences were way expensive than the power licences. Obj made a lot of money thru the sale of telecom licence. I remember Glo almost lost out because they couldn't raise d fees initially. But Jonathan gave out the discos almost for nothing yet they cannot invest waiting to use OPM to do business.

the agreement was that the govt will pump money into the discos for 5 years and for ur information the discos where sold at an inflated price. check ur record the worth of the discos when sold by the govt was inflated coupled with their present Govt policy that is affecting the economy of the nation.
am not saying the Disco are saint but they should not be the only one to be put at the stake the Govt should be held responsible for the problem of the power sector too.