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Nairaland Forum / Nairaland / General / Politics / Confusion As Disco Announces Tariff Increase, NERC Silent (23833 Views)
Disregard Reports Of Electricity Tariff Increase - AEDC / Nigerians To Pay More As FG Approves Tariff Increase For Power Companies, Disco / No Tariff Increase, Buhari Ordered Mass Metering - NERC (2) (3) (4)
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Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Nobody: 7:54am On Aug 29, 2021 |
CapitanS: Well.they are being kept alive by goverment subsides and by the fact that they still make some money Just not enough to make the needed improvements. Which according to one group may be as high as 30 billion a year |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by harjay1986: 7:57am On Aug 29, 2021 |
Surely24: no be so bro, when you are into business of such it business first, just like subsidy let everything go back to private sector but it must not be concentrated in one hand , let company that can generate power generate and distribute at the same time ... no middle man like what we have now then we can now have sufficient power as its now we are pay double money .... disco and genco generate sell it to distribution company who are largely money oriented and always maximixe profit who later distribute to us why can we allow the like of genco and disco maybe some other company that can generate to also sell direct to customer thereby reduce transmission money on us 1 Like |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Barryseal: 8:00am On Aug 29, 2021 |
Modrov:How did you arrive at the figure 73 naira? A few years ago we paid less than 15 naira per kwh. What percentage of customers pay over the odds in the name of estimated billing? |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by emorse(m): 8:02am On Aug 29, 2021 |
Modrov:Do you know how much these guys make from estimated billing? Let me give you an example. In my area(rural), we used to pay around 5k for an estimated usage of about 150kw monthly(20 days in a month). Then prepaid meters came and we realize that even the "heavy" consumers among us don't even use up to 100kw monthly. I guess they realised how much they stood to lose so they stopped metering immediately. As if that was not bad enough, we started getting less rations (from 20 days a month to 10 days a month now) and guess what happened to our monthly bills. You guessed right - they went up! How do you justify that? Oga, we're currently paying for much more than we consume and that should make up for any shortfall in tariffs, if any. The corruption in the electricity distribution sector is beyond massive and can only be limited with prepaid metering. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by AuroraB(f): 8:05am On Aug 29, 2021 |
Andyvilly:SIMPLE 2 Likes |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by VeeVeeMyLuv(m): 8:07am On Aug 29, 2021 |
All these incessant increment in the prices of goods and services without a corresponding increase in wages/salaries across the nation is a resultant effect of the devaluation of the NAIRA. 1 Like |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by skayT: 8:08am On Aug 29, 2021 |
You're just talking in the nonsense. All these their involuntary price hikes is cuz they are in an essential sector i.e power. If not, most Nigerians would have naturally stop patronizing them. Let them continue to increase tariffs. All I know is that nothing lasts forever. Even Nigeria will not remain a country forever! Modrov: |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by emorse(m): 8:16am On Aug 29, 2021 |
Modrov:I don'tknow if you are old enough(i don't mean this as an insult please) to remember what happened when GSM rolled out in the country. These guys consistently told us how impossible it was for tariffs to drop. How we were not ripe for per second billing. Not until glo broke in. In the pay TV sector, the exact same is happening. We're not ripe for pay per view but they frustrate any company that tries to break in like glo did (Hitv, TSTV etc comes to mind). They've probably learnt from experience. These guys just want to make money without working. And I don't really blame them. They're only mirroring our government officials. 1 Like |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by FILEBE(m): 8:19am On Aug 29, 2021 |
Modrov: No they don't. Let some one from the inside tell you. You will know what is going on. They make huge profits. The corrupt practices going on in that company is just too much . |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Nobody: 8:23am On Aug 29, 2021 |
FILEBE: Well, they don't , as this Nairametrics article tells you... Electricity distribution companies in Nigeria (DISCOs) suffered a reduced tariff collection efficiency in Q2 2020 from 68.04% in 2020 Q1 to 64.4% in 2020 Q2, with a recorded loss of N58 billion unpaid electricity dues. Also, below is a page from a 2018 report on 'Solving the liquidity challenges in the power sector' It makes for interesting reading.
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Re: Confusion As Disco Announces Tariff Increase, NERC Silent by justking(m): 8:28am On Aug 29, 2021 |
Confused people |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Nobody: 8:30am On Aug 29, 2021 |
emorse: Yes, even companies don't know simple economics at times. When there is competiton, prices will fall. Plus, the companies were building our GSM network from scratch...and it was costing them a lot of money. That's why they made such a comment. In the pay TV sector, the exact same is happening. We're not ripe for pay per view but they frustrate any company that tries to break in like glo did (Hitv, TSTV etc comes to mind). They've probably learnt from experience. Hitv MADE a lot of mistakes. 1.They thought that Nigerians got cable for just football....when it is for a host of things. 2.They also could not get enough subscribers to pay for the huge expenses they were incurring in paying for rights to football. 3.Their bouquet was bad. And anyway, TSTV too made some mistakes...including lying about a deal with Bein sports to broadcast permier league matches...which in essence was wrong. Plus, we have alterantives to DSTV like Startimes. Which is cheaper, and which many people use. DSTV wins because of the vairety they offer. These guys just want to make money without working. And I don't really blame them. They're only mirroring our government officials. I advise you to google, when you have the time...the PWC report Solving the liquidity crunch in the power sector. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Nobody: 8:31am On Aug 29, 2021 |
skayT: 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. 1 Like |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Nobody: 8:33am On Aug 29, 2021 |
emorse: At estimated billing of 5000 for 150kwh is about N33.33 per kwh. which for something that two years ago cost N53 per kwh to make and N73 per kwh now to make is relatively cheap. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Nobody: 8:39am On Aug 29, 2021 |
Barryseal: Reading online. Plus, about two years ago, according to Moghalu, the former CBN deputy governor, it was N53 per kwh. Also keep in mind that costs may be higher due to the fact that 1,Gencos pay for gas in dollars, not naira 2.Losses on the grid....transmission losses. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Barryseal: 8:49am On Aug 29, 2021 |
Modrov:We like being vague in this country. Moghalu is not a power engineer. I will prefer to hear from experts like Prof Bath Naji. Would like to see the cost breakdown of how 73 naira per Kwh was arrived at by the Gencos. Its to convenient to quote figures to suit a narrative and sell to gullible Nigerians who just cant interrogate those figures. 1 Like |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Nobody: 8:52am On Aug 29, 2021 |
authority2006: Okay comrade economist. One, FG is still subsidising the energy that DISCOs are buying from the GENCOs. I'm not saying subsidising for the customers but subsidising for the DISCOs Yes, they do, to the tune of 1.3 trillion naira over the last several years. But the losses DISCOS make are higher than that, so the subsidy does nowt. Subsidies cannot cover losses adequately. That's because costs of production are not static....they can rise and fall. That's why not paying subsides and allowing the evil capitalists to set their price is the only proven way to keep them earning enough to satisfy costs of production. . Two, have you ever been given estimated bill? I was given monthly estimated bill of 20k for 7 months before prepaid was given to me. Now, the total amount of debt on our prepaid meter is 200k out of which we have paid 50k within 3 months apart from the cost of energy we're buying. But I'm happy to tell you that we didn't consume that 20k energy per month. That's exactly what over 80% of their customers are facing today. Yeah, I do support everyone getting a meter (I used to pay estimated billiing for a one bedroom flat. By the time I moved I was paying between N5000-11000 monthly. Moved to a flat with a prepaid meter, head to the DISCO office to pay N6000 to load the meter, DISCO officer looks at me like I had brought in a king's ransom or something.) Thirdly, do we even have a stable power supply? No. But customers on estimated billing which are the majority are being billed for 24/7 power supply! Is that fair? Yeah, and to fix the power supply we need money. A lot of money. Which is why DISCOS and GENCOS need to be allowed to operate profitably so that they can fix all that up with the profits they make. And for beleiving in this, I have been called names. By people who won't accept the nonsense government forces on DISCOS on their businesses. Fourthly, are these DISCOs even investing according to their agreement with FG? No! People are still buying transformers, main poles and cables in new communities. DISCOs staff just come to collect tariffs once such communities are connected to the power grid. Is that fair? Again, when you don't let DISCOS make a profit, they won';t have the money to buy all the stuff they need. (Even then some discos do supply those things, eg ABUJA disco..) Fifthly, are DISCOs even paying the GENCOs appropriately and as when due? Go and read up how much they're owing GENCOs. On top the fact that these DISCOs owners are smiling to the banks everyday. Lol...disco owners are not smilling to the banks (One of their bosses even told a relaitive of mine who knows him that they are not rolling in money.) DISCOS are actually losing money because they cannot earn enough money due to 1.Price controls by NERC. 2.Then as much as 30-40% of customers don't pay for power. Even having a prepaid meter means it can be bypassed. (A former landlord of mine had to pay a fine to a disco for a tenant who bypassed the meter, and refused to pay) GENCOS too have to pay for gas in DOLLARS. And the gas companies, including that NNPC subsidiary NGC refuse to take Naira or any other currency. Not possible because the billions you're talking about is in dollars, not naira. And it is not a few billions of dollars. You need to read the ridiculous clauses put in place in case FG wants to get it back. It all boils down to 'a contract is a contract'. P.S I strongly suggest you read this report linked below. Also below is a page which summarizes the thing. Solving the liquidity crunch in the power sector.
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Re: Confusion As Disco Announces Tariff Increase, NERC Silent by FILEBE(m): 8:54am On Aug 29, 2021 |
Modrov: Why were they unwilling to give out prepaid meters if they don't make so much from estimated bills? Prepaid meters would have sold whatever revenue deficits they have or had. But guess what? They make so much from estimated readings than they would on prepaid meters, hence, they became reluctant to give them out. I am telling you that you have to be in the system to know what is going on . Enquire from staffs and management and see . 1 Like |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Nobody: 8:59am On Aug 29, 2021 |
FILEBE:. Which is why we had the MAP programme...which has rolled out a lot of meters to many people. I am telling you that you have to be in the system to know what is going on . Enquire from staffs and management and see . One management staff told a realtive of mine that they don't earn enough revenue from tarrif collections. Esppcailly in rural areas. Also a Abuja DISCO staff once commented that 70% of their REVENUE in the fct alone comes from the city limits. Most people in the rural areas and satellite towns of fct don't pay much. Plus, if they were rolling in money like the telcos, they should be attracting investment . They should also be able to take loans.. tHE FACT THEY can't tells me a lot. You can earn N2 billion in a month in your business, but if your projected earnings were N4 billion, that's still a loss. You are making a lot of money, but still losing money. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by emorse(m): 9:01am On Aug 29, 2021 |
Modrov:You obviously didn't read everything you quoted. The 150kwH was arbitrarily fixed and it was revealed that even the heaviest consumers among us don't consume that much. Not because they don't need but because they don't even get that much power. Thats why they stopped metering us. Now they give us less than half of what we used to get(from 20 days to 10 days a month) and somehow, our monthly consumption has increased to about 290kwH. How does one rationalise that? Mind you, we don't get 24 hours power in a day o. And sometimes we don't even get power at all in a day so the 10 days a month is just on paper. The only people who are free from this scam are those who were metered which these guys found a way block. Abegi Na person wey no know as e dey go Dem go dey use textbook English dey bobo. 1 Like |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by bewla(m): 9:03am On Aug 29, 2021 |
Esseite:The only thing this will lead to is corruption Because if you can't afford your standards because your salary can't match your spending then you look for more way to steal Poverty increasing government |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Nobody: 9:04am On Aug 29, 2021 |
emorse: Which is why I also support metering everyone. Now they give us less than half of what we used to get(from 20 days to 10 days a month) and somehow, our monthly consumption has increased to about 290kwH. How does one rationalise that? Mind you, we don't get 24 hours power in a day o. And sometimes we don't even get power at all in a day so the 10 days a month is just on paper Which is why I support metering everyone.. The only people who are free from this scam are those who were metered which these guys found a way block. Abegi Na person wey no know as e dey go Dem go dey use textbook English dey bobo. Which is why I support metering everyone. P.S If you have the time don't read this please
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Re: Confusion As Disco Announces Tariff Increase, NERC Silent by nedekid: 9:05am On Aug 29, 2021 |
Esseite:Meanwhile, those new inverter ac really work, only they are a lot more expensive. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by jamace(m): 9:10am On Aug 29, 2021 |
Abeg, where is oga Fashola? Is electricity power now a rocket science? Talk is really cheap. Las las Oga Fashola don humble. Him voice don disappear from media. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by FILEBE(m): 9:17am On Aug 29, 2021 |
Modrov: We had to fight tooth and nail to get meters. Even as it is .. it isn't easy to get. That is the corruption I am telling you about . The staff that said they don't earn much from rural areas compard to cities is right. That is no brainer . I am talking about Ikedc and Ekedp. These people record any revenue they like and leave out what they want to embezzle . I am still telling you to find a truthful staff of these companies. He will tell you. Currently Ikedp records more revenue than ekedp in books but in reality it is the other way round 1 Like |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by emorse(m): 9:17am On Aug 29, 2021 |
Modrov:Knowing the bolded should mean END OF STORY! I don't care what PWC, NAIRAMETRICS or any other organisation has to say about it. They derive their submissions from official figures which you(from the bolded), I and many others all know are not very accurate. The corruption in that sector is what we are suffering from and not the "high" cost of production as they would have us believe. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by emorse(m): 9:21am On Aug 29, 2021 |
jamace: Fash na still my guy. I still believe am die. If that guy get free hand ehn, I believe say difference go dey. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by emorse(m): 9:28am On Aug 29, 2021 |
FILEBE:GBAM! This I know for sure. Modrov is spot on in his submissions going by the OFFICIAL FIGURES. But those figures are SERIOUSLY WRONG and evidences that prove so are right before his eyes. I just wonder how he fails to see them. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by sylve11: 9:29am On Aug 29, 2021 |
Lol Disco |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by Nobody: 9:31am On Aug 29, 2021 |
emorse: Well, since you don't want to believe researched facts, but what 'my friend who is in the company says that'..ie hearsay, I think it is no use continuing this discussion I honestly wish we could all pay N10 per kwh. Or not pay anything for power. But then the thing is improvements, upgrades, staff welfare, even the meters don't pay for themselves. Good morning. |
Re: Confusion As Disco Announces Tariff Increase, NERC Silent by AntiChristian: 9:34am On Aug 29, 2021 |
namqul: Ehn ehn! That's bad o 1 Like |
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