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.?

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?

Modrov:


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

Barryseal:

Of course India cannot match Nigerias corruption, so India is not Nigeria. I have the data from fellow oil producing countries like Oman and Qatar reflecting even lower cost of energy production to nuclear powered India.
This lies and conspiracy theories about discos running at a loss MUST STOP. What kind of concobility is this!?

Modrov:


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.

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.

Barryseal:

You want me to believe a bent report which claims the discos have been running at a loss for almost a decade? How can you even make sense of that? Is this not the same kind of report that claimed NNPC was running at a loss for 30 years but suddenly declared 287B AFTER TAX this month. Lets stop all these lies.

Barryseal:

You want me to believe a bent report which claimed the discos have been running at a loss for almost a decade? How can you even make sense of that? Is this not the same kind of report that claimed NNPC was running at a loss for 30 years but suddenly declared 287B AFTER TAX this month. Lets stop all these lies.

emorse:

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.

FILEBE:


Exactly.
@Modrov. I am wondering why you aren't seeing this. I would have believed those reports if a truthful staff hadn't told me all these. A lot of revenue goes unrecorded. Even sales of prepaid meters.

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.

emorse:

I tire o. Is there any business in the world that can withstand 5 straight years of loss? Why not pack up and leave then?

Power should not be free. But we should only pay for what we consume. Make dem stop to give us bobo.

Modrov:


And now we are in the realm of 'proven facts don't matter'

Good morning. The fact is, I agree, in my heart, that power should be free for all Nigerians. But that's against all sensible reasoning.

I don try.

Barryseal:

What fact have you proven? #73 naira to produce electricity in Nigeria while in other gas producing nations it costs less than #20 equivalent? I dont think anybody have suggested electricity should be free ,what we are against is the lies and day light robbery going on in the power sector. If I was benefiting from the fraud, I would be on the other side defending with ground breaking facts and figures. Thats how Nigeria works, have a nice day.

Modrov:


Generally, DISCOS make enough to pay staff salaries...it is when it is time to pay for things like gas, repairs, upgrades, etc...that they don't have enough money.

Government also pays them a subsidy, which even then is not enough.

At the end of the day, power needs a lot of money.

Modrov:
Discos have no choice.

All the discos have been running at a loss because they aren't allowed to charge cost reflective tariffs.

We may all complain, but the truth is if we want power 24 seven we have to pay the market price for power.

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


Modified

Before you abuse me, and abuse my ancestors, and my desecndants, and call me names ...I suggest you read the report I will link below. You are free to abuse me regardless...but read the report.

Solving the liquidity crunch

Barryseal:


They cant pay salaries if they were really running at a loss ogar.

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!

Modrov:


They can....

Companies run on fixed costs...from whence salaries cometh, and operating costs.

They may be having enough for the fixed costs bit...but the operating costs...is where the lack of a profit is very painful (Them DISCOS always complain about not having enough to pay GENCOS)

The subsidies...part of which comes from government, and part of which comes from private loans...may help a bit.

Barryseal:

Yes, they can run on fixed cost for a few months not 10years.

Modrov:


Which is where the subsides government (alongside some international lending agencies) pays come in. It is good, but not good enough to make them earn a decent profit.

Plus they don't pay taxes...simply because they can't afford it. (Kaduna DISCO has not paid taxes since its' establisment, as an example. That is also mentioned in the report that I have posted here). Government knows, and turns a blind eye. If government forced them to pay up...they would go out of business.

Barryseal:


Subsidy again? mehn, am out.

Modrov:


Generally, DISCOS make enough to pay staff salaries...it is when it is time to pay for things like gas, repairs, upgrades, etc...that they don't have enough money.

Government also pays them a subsidy, which even then is not enough.

At the end of the day, power needs a lot of money.

Modrov:


Yeah, when power is not charged at market prices but government prices, government has to pay a subsidy to offsett the losses being made.

Barryseal:


The discos are runing at a loss while the government pays subsidy to generate energy at twice the cost of other gas producing nation's Kwh. Thats right! bye bye

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.

emorse:

No one has said you're lying. We're only saying that you're believing liars. And please no one wants power for free. Just do your job and give us what we pay for.

Modrov:


No you are.

You are accusing me of posting lies...when I posted a report from experts on the power sector.

Okay, so why won't I be upset.

That's one thing I don't like about Nairaland. Post facts...people accuse you of lying.

Anyway i have tried. No profit...no money for improvements. Good am.

emorse:

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.

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.

Modrov:


Well since we are poor we can only afford poor power supply by your analogy

Good to know that