Elshaddai

GardenOfGod:


Source:
https://punchng.com/confusion-as-disco-announces-tariff-increase-nerc-silent/

Those paid urchins will still come here to blame ipob and MNK. Enjoy your change.

Modrov:


And even then we won't have stable power unless we pay the power companies a rate of that enables them to make an adequate profit to make investment in improving things


All the increases we have had so far have not been enough to enable the power companies make a profit since the increases are sanctioned by government, not the companies themselves

And what goverment does is to keep the price of electricity below the cost of production per kwh. This ensures that discos and GENCOS don't make enough of a profit. The government is supposed to pay them a subsidy which in theory is supposed to make up for the losses, but in practice does not because of rising costs of producing electricity.

Allowing discos to set their prices would allow them make a profit to pay for the needed improvements and even encourage more investment

pls how have all d past increases reflected in improved commensurate power supply?

Modrov:


It costs 73 naira to make one kwh of power.

We pay between N53 to 71 per unit.

30 to 40% of customers don't pay a dime

Discos are running losses in the trillions as a result.

See the problem.?

how did u arrive at your 30 to 40%?

but if u say 30 to 40% of consumers dont pay a dime, is increasing tariffs now d solution to d problem?

Modrov:


India is not Nigeria...plus India generates from a wider vairety, including nuclear.

what are d variety of power that india generates and what are d variety that nigeria generates? is it cheaper to produce electricity with nuclear than gas?

Modrov:


Well, it isn't just the DISCOS saying that...it is also independent audit companies like PWC saying that.

The below is a page from their report on the matter. Solving the liquidity crunch in the Nigerian power sector.

I was expecting u to counter this:

I have the data from fellow oil producing countries like Oman and Qatar reflecting even lower cost of energy production to nuclear powered India.

Modrov:


All of you guys are saying I am lying, and saying your 'hearsay' is better than organsied facts , so why should I believe you?

You want power for free. That's okay. I accept that. But in real life, things have to be paid for.

what are d "organised facts" that u have presented? is there anyone who said they want power for free?

[quote author=Modrov post=105286070][/quote]

u are just recycling your attachment which do not in any way negate these claims made by barryseal:

#73 naira to produce electricity in Nigeria while in other gas producing nations it costs less than #20 equivalent

can u tell us why this is d case?

Modrov:


DISCOS aren't government establishments, not since 2013. (Transmission is all that is in government's hands, and even they depend on their portion of the revenue that the DISCOS can raise)

Plus, this is a PwC report, not my report...so ask them how. Plus PwC is composed of experts who do this for a living...so they should know what they are doing.

So its now PWC report, not ur report? if u arent sure of its claims, y have u been brandishing it?

lexy2014:


So its now PWC report, not ur report? if u arent sure of its claims, y have u been brandishing it?

K.

Modrov:


And even then we won't have stable power unless we pay the power companies a rate of that enables them to make an adequate profit to make investment in improving things


All the increases we have had so far have not been enough to enable the power companies make a profit since the increases are sanctioned by government, not the companies themselves

And what goverment does is to keep the price of electricity below the cost of production per kwh. This ensures that discos and GENCOS don't make enough of a profit. The government is supposed to pay them a subsidy which in theory is supposed to make up for the losses, but in practice does not because of rising costs of producing electricity.

Allowing discos to set their prices would allow them make a profit to pay for the needed improvements and even encourage more investment

if previous increments havent resulted in improved power supply, how would this present increment and subsequent increments result in improved power supply?

Modrov:


The cost of production is increasing at a higher rate than the cost price of power

Hence no difference.

who is making d cost of production increase? are d salaries of those paying for power increasing?

Esseite:


Do you think the workings of an economy is based on just increase in everything and anything? .. there should always be balance.

There are factors to consider..
- You have 35% unemployment rate.
- Inflation in double digit.
- 50% below poverty line.

An increase would lead to increased inflation, more production from factories but less buying power, less product purchase and usage to minimize electricity, thereby more unemployment in various sectors...

Eg.. used my last AC unit for 4 years before it required change.. have used the "new" one for 8years now because it is barely turned on to save power. Now imagine what happens to the Aircondition market.

Are we paying higher electricity tariff than our African peers, Ghana, Egypt, south Africa, Algeria, Ethiopia, Kenya etc? Or higher tariff than developed countries?

Don't forget the equipment cost of power production is the same like all above countries as we all buy from the same market.

Modrov:


Or we could prevail on Buhari to reverse the privatisation of power in return for paying the discos and GENCOS billions in compensation for in essence breaking their contract

buhari cant "reverse the privatisation of power because of d fear of paying the discos and GENCOS billions in compensation for in essence breaking their contract" but u say d same govt is paying d discos and gencos subsidies for light we dont have. whats d difference?

houseontherock:
Bubu the destroyer...
Everything he touches gets roasted!


Have you compared this economy with what we have in countries where they pay a lot more for electricity? Before you say Nigerians underpay the power sector, have you looked at the minimum wage? Our economy is so bad that any increase in cost of basic services will not only further reduce our purchasing power, it will kill it!

Electricity tariff per kw.h in Niger republic is 17 cents or 69 naira.
In Togo it's 20.3 cents or 83 naira.
In Ghana 16 cents or 65 naira.

In which of the above countries is the minimum wage higher than Nigeria? Yet they all have higher electricity tariffs

adecz:





⏩This government wants tariffs,
taxes, service charges etc to be like
internationally recommended levels.
❌
But when it comes to salaries and
allowances of workers, they do all
their best to keep it at slave plantation
levels.
❌
⏩That is part of the reasons doctors are
leaving for Saudi Arabia.

☹️☹️☹️☹️☹️

How much will it cost to pay the 75,000 doctors in Nigeria like Saudi so they will not go?
What if we promise them half to stay back, can govt still afford it? Where would that amount come from? What do you then pay the 250,000 nurses so that they will stay? What of the other health workers?

By the time you pay all of them Saudi wages, how much will be left to run the rest of the country?

Peppysco:


Do people get value for money for the bills they currently pay?
Stop defending these idiots, well, maybe you benefit directly from the sector

Why do you people always pivot every different opinions to defending this or that? Or just because the person is benefitting? I can tell you 99% of power company staff also suffer from epileptic power supply.

This type of pivot betrays a kind of shallowness.

Do you really think the discos are making tons of money at the moment?

amalab30:
What is this country turning into?

It has finished turning into. Na prayer remain. What God Cannot Do Does Not Exist.

Any NEPA that's ready to go and greet his ancestors should bid his family bye bye first, then come and climb the pole in the front of my house.


It's a free ride. No payment.

Nonsense people

Ovamboland:


Electricity tariff per kw.h in Niger republic is 17 cents or 69 naira.
In Togo it's 20.3 cents or 83 naira.
In Ghana 16 cents or 65 naira.

In which of the above countries is the minimum wage higher than Nigeria? Yet they all have higher electricity tariffs

These countries are not gas producing nations like Nigeria.

Ovamboland:


How much will it cost to pay the 75,000 doctors in Nigeria like Saudi so they will not go?
What if we promise them half to stay back, can govt still afford it? Where would that amount come from? What do you then pay the 250,000 nurses so that they will stay? What of the other health workers?

By the time you pay all of them Saudi wages, how much will be left to run the rest of the country?

so is all d money that gets into govt coffers used actually used to run govt? how much of govt revenue is properly and justifiably used?

Ovamboland:


Do you really think the discos are making tons of money at the moment?

are d citizens who are supposed to pay these increased tariffs making tons of money at d moment?

ayenale1:
Its only in southern Nigeria i hear increase in electricity tarriff, in the north nothing of such...their meters too are kind of different with a cheaper rate...

There is nothing you people cannot turn to regional issues and we against them. Even the petrol they consume in the north is superior to the one in the south. And Buhari has seized southern air to be bitter and dirty while he cleaned and sweetened the air they breathe in the north.

You are proof there's a kind of pervasive illness afflicting bigots

Modrov:


Well, they don't , as this Nairametrics article tells you...



Also, below is a page from a 2018 report on 'Solving the liquidity challenges in the power sector' It makes for interesting reading.

You have tried a lot to calmly educate people about the realities and challenges of the power sector.

But many educated Nigerians prefer to be arrogant in ignorance. They are more titillated by rumour, conspiracies, grapevine and mere gut feeling than detailed facts. They find it difficult to rise above their present challenge in order to have better view of the problem that can give them vantage view and become possible change agents.

They will tear down any suggestions of real solutions to the problem while they can't think of any solutions.

Your explanation distress many of them as they are more at home with people cursing their existence, sharing woes and lamentations than anyone clearly defining the problems.

It's far easier to lament than think up solutions to problems, and lamentations keep them in their comfort zone.

Modrov:


Even in Biafra and oodua...so long as you don't pay a price that enables power companies to make a profit to pay for improvements in facilites, staff welfare, upgrades, etc...you will still get bad power.

Maybe they think they will pay nothing for utilities in their Utopia, until reality slaps them hard in the face.

Ovamboland:


Why do you people always pivot every different opinions to defending this or that? Or just because the person is benefitting? I can tell you 99% of power company staff also suffer from epileptic power supply.

This type of pivot betrays a kind of shallowness.

Do you really think the discos are making tons of money at the moment?

You just want to be noticed and yes you have. But the truth is, you're yet to answer my question. Which is 'Do Nigerians paying heavily and in most cases, crazy or estimated light bills get value for their monies', of course, you can't ever answer that. I bet you also don't enjoy regular power supply wherever you live
The 99% power company staff you mentioned, do they get enunerations commensurate with their work load and also value for the light bills they pay? Of course, you cannot answer that as well. Just so you know, all the Discos operating in Nigeria all do so in a perfect market structure and if the business is no longer profitable for them, they can all exit the market cos consumer sovereignty is the watchword for such market structure. So, don't blame us when we rebuke them cos we understand their business models and the services they ought to render. I won't blame you also cos you either benefit directly from the sector or you're just plain ignorant of how the market works

Barryseal:


A simple google search just showed that it costs 5.43 Rupees to produce a Kwh in India, the equivalence of #30 naira. Are the Indians runninig at a loss too? I ask again, how did you guys arrive at #73 to produce a kwh of power in Nigeria, a gas producing country?

India produces more than 50% of it's power from coal which is cheaper overall compared to natural gas turbine. Also they've developed capacity to maintain most of their generators with local manpower, hence reducing maintenance cost. We still fly in experts at huge cost to do some critical maintenance work in our power plants.

emorse:

And since you'd rather believe figures from the pages of documents over evidences whose effects you have personally felt (not just hearsay), figures presented by the beneficiaries of the corrupt practices that we are all suffering from, I completely agree that it's of no use continuing this discussion.

PS: Majority of us are unmetered, therefore majority of us are overbilled(as shown by your personal experience). Why can't the surplus revenue generated from the "overbilled" customers cover the supposed deficit incurred from the "low" tariffs? Does that not mean that someone somewhere is not being truthful? Think about that.

PPS: I'll definitely read the item you recommended. Who knows, I might find some useful information.

Have a nice day man. Cheers!

Let's not pretend we don't know a large part of the estimated bills never get paid. I know many people in my estate owing power bill balance up to 500k, at last many were negotiated to pay 50% or less to wipe off the debt. Some have continued to grow.
Apart from unmetered account, there are hundreds of thousands of unregistered users who just connect to power poles to weld, or do other heavy work. Someone is made to account for that maybe you with account but no meter.

In some areas, they let discos cut their wire, before they depart the next street, the lines are already reconnected and enjoying free power.

If you are paying religiously the outrageous estimated bills, don't assume every other consumers do that.

ogaontop:

How do you prove these figures, many figures from these government establishments are not correct, A government agency in Abuja is currently having issues of 28.4 billion naira difference between 2015 to 2020 when PWC audited them!

You believe this PWC report but disbelief the same PWC report on power sector illiquidity that Modrov has been sharing since.
Beliefs or disbelief without counter data can be sincerely wrong.

Ovamboland:


Let's not pretend we don't know a large part of the estimated bills never get paid. I know many people in my estate owing power bill balance up to 500k, at last many were negotiated to pay 50% or less to wipe off the debt. Some have continued to grow.
Apart from unmetered account, there are hundreds of thousands of unregistered users who just connect to power poles to weld, or do other heavy work. Someone is made to account for that maybe you with account but no meter.

In some areas, they let discos cut their wire, before they depart the next street, the lines are already reconnected and enjoying free power.

If you are paying religiously the outrageous estimated bills, don't assume every other consumers do that.

And the easier thing to do would be to make those who have been religiously overpaying to pay more? No na.

emorse:

DISCOS don't pay for gas. GENCOS do. DISCOS only bear four costs. 1. Cost of power recieved from the TCN. 2.Workers' remuneration. 3. Maintenance costs. 4. Upgrades.

1. The federal government subsidises the power they get from the TCN. This means they are only to pay a fraction of the actual cost of the power the receive. Yet they default!

2. We don't hear much about workers remuneration so it is safe to assume that they're doing fine.

3. Maintenance? Haba! Most communities bear the cost. We recently paid handsomely to have our transformer fixed after which they dropped our quota to 10 days a month and increased our estimated monthly consumption.

4. Upgrades? We don't see those. Shey na people wey no gree repair transformer go upgrade am? The last national mass metering program was sponsored by the federal government and these guys hijacked the process and messed it up. Imagine a community of only a few thousand houses that got an allocation of 44,000 meters. Less than half of us have been metered and they say meters don finish. How come? I hear another metering phase is due to commence soon but there's a high chance that these guys will hijack it again.

DISCOS understate their revenues to avoid paying the TCN and GENCOS what's due to them. I mean, it is simple. If the TCN gives them only 1kwH which is already subsidised by the government for onward distribution, it's difficult to see where the loss will come from since they're only meant to pay the balance for the 1kwH that they received!

Your community alone can't get 44,000 allocated meters.
The whole of Lagos got allocation of about 110,000 out of the 1m units for the entire 36 states and Abuja. Some states can't even get 44,000 units.

Whoever told you you got that much for your community alone misled you. Even that number 44,000 in Lagos will be what like 6 or 7 local government with several communities would get.

Barryseal:


These countries are not gas producing nations like Nigeria.

Even the gas is not free as we've not developed capacity to produce it ourselves