Body odour no dey work again suffering and smiling

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The senators really needs to be educated on this as most of them don't understand the dynamics. I can't blame them because they only understand politics.

Nigerians are paying the 2nd cheapest electricity in Africa but want to enjoy 24hrs light as if the equipment needed for electricity generation or transmission are cheap!

Azura a 450MW Genco in Edo will spend over $1.2billion to build their plant, sell to NBET who will give Discos who will sell for stipends while battling with consumer's who don't pay bills and illegal connections etc so Discos won't be able to pay NBET who won't pay Azura (Genco) who won't be able to pay their bank loans (and for gas supply)!

Solution: Increase electricity tariff and cancel estimated billing to consumers. Disconnect those that don't pay. This will bring confidence to the market and attract investors!

People are paying 100 times more than the tariff for running their generators!

You are not smart at all with your solution.

"Where in the world with a stable power supply,consumers are paying as low as N13($0.065, at official rate of N200) or even N30,for a kilowatt of power". The greatest crap you wrote above. Do we have stable power supply in Nigeria? that's Ignorant of you.

I never said I need to see their books before paying my bills, do not assume what I didn't write. I was talking to you and I quote myself to make you understand the crap you wrote.

"How sure are you that their pricing leads to negative profit projection? Do you work with them? Have you seen their books?" and "Until I see their books, I don't believe that they aren't making profit or turnover".

Revenue is not profit, but you get profit from revenue after separating other cost. I thought you will see the bigger picture that's why I wrote "etc".

Yes I expect private entity to open their books to the public as required by law in corporate governance. Go to every corporate entity Website and see their annual report.

Agreed tariff? So you think it is wise to force tariff on the masses because this companies are not making enough profit?

The reason why I responded is because you think you know it all which is ignorant of you and it will get you nowhere. When in a discus, you argue your points intelligently and pocket your insult (ignorant and crap). Peace be unto you.

GoodGovernance:


Very interesting,they should run to the banks to finance a non cost effective business model !

For your information,Revenue is different from Profit.And without empirical evidence you are assuming that revenue from estimated bills ,fixed charges etc, have covered their cost,to make profit ?Another crap!

You also expect a private entity to open its books for you before you pay for their product/service.Another crap!Do you request for the books of Sweet Sensation before paying for their meat pie?

Ignorantly too,people are not aware that there was an agreed tariff regime with the FG before those guys agreed to take over,via privatization!

How much were we paying for telephone calls at the earlier stages and how much are we paying now?So those who are ironically referring to the telecoms sector should note that we initially paid through our nose before the pricing went down,They charged us appropriately and thus could afford to invest heavily ,without fear of interference or public resistance,otherwise, the sector could also have been a total failure!

Where in the world with a stable power supply,consumers are paying as low as N13($0.065, at official rate of N200) or even N30,for a kilowatt of power

The earlier we accept the reality and consequences of privatisation,the better for all of us on the long run!

Invest in renewable energies too, let's ve diff source of power... I dnt even knw who to blame

ATERI:


You know that you have not answered my question, but it`s ok. The truth is, everything Nigeria is doing today, Britain has been doing since 1970s, so we know where blind privatization is going to lead. US an UK are the indisputable kings of privatization. The same US and UK are the most unequal countries in the West, Describing America and London as Apartheid States would be very apt, when we talk of economic inequality. The most important factor common with them is that everything is privatised. In London, everything is in private hand, but still government is spending billions of pounds to boost infrastructure while the Dangotes of London go home with the profits. And that is where Nigeria is going; blind privatisation handing over the economy to a couple of individuals, who promise heaven and earth in the beginning, only to tell government and society later that they need more money from them to do the business. In other words, losses shared by the people while profits are shared by a couple of billionaires. The reason why ours is worse is that when Brits and Americans privatise, their economies still stay in their hands, but when Nigeria privatised our economy go to the West. The way forward is not blind privatisation but govt and private sector getting together like it`s done in the best countries in the world.

You forgot to add that when Britain privatised water supply in the eighties, they discovered that more older people were dying due to their lack of access to clean pipe borne water as a result of higher rates charged by the water companies. The govt had to intervene to give concessions to the elderly so that they could still get water supply at minimal or subsidised rates. In a few places, the high rates were even revoked.

Sadly, in this country we privatise blindly without examining carefully the pros and cons, or conducting a long term analysis of the effects of such privatisation, on the populace. We keep forgetting to take a look at lessons learnt from other countries and sectors, and we tout privatisation as a 'cure-all' for every form of ailment we have in this country.

When the DISCOs took over PHCN's assets, didn't they know how much it would cost to upgrade such facilities and how long (and at what cost) it would take them to generate power using the existing facilities?

Inspectahdeck:
please what about the (750) fixed charge monthly that amounts to billions of Naira, didn't it settle the gas charges? Or the estimated bills charged to customers for power not consumed which amount into billions.

The problem is they want to make more profit. I pay around N20, 000per month for a 2 bedroom apartment with at least 5-6 hours power in 2days (estimated bill). Now please add 45%to that and tell me how visible that is.

If they cannot operate they should hands off. The Government should open the market for free entry and see how things will change.

Help me ask dem, o! The billions they have made from the money they have collected from consumers in the past few years, why didn't they use it to pay for the gas used to generate the power? Abi, they forgot they had to pay for gas? As for the meters, the consumers pay heavily for them in Lagos and other southern states, so I do not understand why EKEDC or its mischievous management have failed to supply these pre-paid meters, yet they still want to increase tariffs. Don't forget that they got a bailout fund from Jonathan with plenty of fanfare, o! Yeye people..

blazetitov:
Ehen, Come , You dey run pure water factory for the house

If this is true, then you need to complain unless you don't have a meter. You referred to the N750 monthly charge but you forgot to mention that when these companies were sold, the were sold with huge liabilities and moribund equipment. If we want steady power, we should be ready to pay for it.

Ehen?? Didn't the investors conduct due diligence on those existing facilities, to know if they could generate power profitably using those moribund equipment in the face of the existing liabilities, before buying them? Did anyone force them to buy those power plants? What kind of excuses are you making for them?

kjhova:
You are very correct Goke. Econet and MTN paid almost US$300M each in licensing fees and still spent additionally over a billion dollars to build infrastructure from scratch to the level we are today. They were serious business entities which were already in existence and operations before bidding for the Nigerian licences. They also brought in a functional billing mechanism which put them and not the consumer in charge of bills collection.

The entities GEJ's government sold our power structure to were only briefcase companies with only owners and letterhead papers!! Most of them borrowed funds to pay for the licenses and had no financial nor technical knowhow to improve the structure they were taking over!!!

For those of you who live in Lagos, have you ever seen any IKEDC or EKEDC project around your neighbourhood? Groundbreaking, base cell installation, new 33KVA projects, step down transformers, smart meters that can b remotely tripped off etc

This is not privatisation, no, this is crony capitalism and crass rent collection.

@kjhova, Step up and collect an award for this insightful piece. This is the best post of the month, by far!

Tequilah:


You forgot to add that when Britain privatised water supply in the eighties, they discovered that more older people were dying due to their lack of access to clean pipe borne water as a result of higher rates charged by the water companies. The govt had to intervene to give concessions to the elderly so that they could still get water supply at minimal or subsidised rates. In a few places, the high rates were even revoked.

Sadly, in this country we privatise blindly without examining carefully the pros and cons, or conducting a long term analysis of the effects of such privatisation, on the populace. We keep forgetting to take a look at lessons learnt from other countries and sectors, and we tout privatisation as a 'cure-all' for every form of ailment we have in this country.

When the DISCOs took over PHCN's assets, didn't they know how much it would cost to upgrade such facilities and how long (and at what cost) it would take them to generate power using the existing facilities?

Precisely

adipemcanis1:
And where do you expect the GSM companies to get the money to give you light for 24/7?

GSM companies were able to give us good service because intially we paid high prices.I can remember when V-mobile (now Airtel) was offering sims for N5000....and calling it bonanza (Really!?).

They did that because when government invited the GSM companies to invest in Nigeria...they did not give them start up money....just the licence.

The DISCOS inherited NEPA's ancient facilities.They need to fix them up,and they need to do it with money.Add the fact that we are generating half of what we need on a daily basis....sometimes less than that....and you see the problem.And government won't give them any extra money.

Let us pay the high price...so that we can pay lowprcies when the DISCOS fix up our power supply.Just like the GSM did.

And how much light do you think the DISCOs or GENCOs give to the GSM companies to carry out their operations on a daily basis? Very little. In many areas, the GSM companies still generate a substantial amount of power on their own, to drive their operations, cell sites, base stations, switching centres etc.

When GSM first started, they had no infrastructure upon which their backbone could ride. Apart from that, NITEL was still functional, even though its services were not perfect, some offices and commercial enterprises as well as a few homes and educational institutions, still had an alternative. For students in those days, there were call centres available and NITEL phone booths where they could queue up and make phone calls. It was not a perfect situation, but it still provided an alternative. Also, MTN and Econet were competitors in the telecoms space way back then, with the expertise and funding to provide services and fund their internal operations. They did not receive any bailout from govt, neither did they inherit govt telecoms infrastructure. Today, the DISCOs and GENCOs are a monopoly, that inherited govt assets/infrastructure. They have also received govt support and bailout on at least one occasion.

You cannot compare the situation in the telecoms sector back then, to the current situation in the power sector now. The DISCOs and GENCOs want to increase tariffs....in order to do what? To supply darkness? Why are they NOT listing out strategies to get more defaulters to pay, and expatiating on how to make pre-paid meters available to all those who currently lack one? Why are they not mapping out instalmental payment plans to capture those who have failed to pay up their bills till date, and compelling govt agencies who are the largest defaulters on electricity bills, to get payment deducted from their allocations at source?Why are they not mapping out strategies and tactics to plug waste and losses

Why overburden those who currently pay for power with increased tariffs?? I don't get it, o!