43bn needed for steady power supply – AEDC

By Ukpono Ukpong, Abuja

The Managing Director, Abuja Electricity Distribution Company (AEDC), Ernest Mupwaya, has said that not less than 43 Billion Naira is what is required to execute projects that will guarantee steady power supply for customers within its franchise area.

Ernest Mupwaya made the disclosure at the interactive session between AEDC Executive Management team and the media in Abuja.

He explained that the funds will be used to execute at least 92 technical and non-technical projects that will help to increase the network to 892 megawatts which will be delivered to customers in its franchise area of FCT, Kogi, Niger and Nasarawa.

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“Going into the future, we have made performance improvement plan on what we should do to dramatically transform the business. In FCT we have to spend 31 Billion naira in order to improve the network and various projects. The total number of projects are 92 projects for the whole catchment area of FCT, Kogi, Niger and Nasarawa. We have to spend money so that the network is increased to 892 megawatts.”

Although he said that the provision of steady power supply is not solely in the hands of AEDC being a distribution company, he said “for us to give a full reliability, we need at least 43 Billion Naira of investment to be able to migrate to a level where customers would be satisfied”.

Furthermore, he disclosed that so far the company has been able to install 630 transformers, while 81,533 customers have successfully being metered within the franchise area as part of its efforts to transform the sector to ensure steady power supply.

Speaking on the proposed tariff hike, Mupwaya said that the increase can only be stalled if the government continues paying for subsidy, even as he said that consumers should expect on the average, 35 percent increase in electricity tariff across board.

“If there is no tariff increment, it means that subsidy has got to continue. On average, we should see 35per cent increase across board. It is split up according to service levels, so some that have premium service levels should expect to bear more tariff burden than other areas especially where metering level is still very low.

“AEDC is number one as regards the number of meters installed to customers but that constraints of import duty of 45per cent is a real threat to our transformation agenda.” He said

He however urged all the customers to take advantage of it newly launched contact centres on social media platforms to lodge their complaints, noting that a robust response mechanism has been set up by the company.

Meanwhile, the management of Benin Electricity Distribution Company (BEDC), has said that it needs a minimum of 1,400 megawatts of electricity to be able to provide 24-hour power supply to customers in its franchise areas.The BEDC franchise areas are Edo, Delta, Ondo and Ekiti States.

The Chief State Head, BEDC, Abel Enechaziam, disclosed this during the Nigerian Electricity Regulatory Agency (NERC) and BEDC public consultation forum held in Benin, Edo.

“We need a minimum of 1,400 megawatts but what is currently available to us is between 300 megawatts and 350 megawatts which are far below what we need to give customers 24 hours power supply.

“As part of plan to address the deficit, the company is partnering embedded companies to generate between 800 megawatts and 1,000 megawatts through willing buyers,” he said.

The BEDC boss said the company lost about 55 per cent of power to the activities of vandals and through electricity theft adding that the company also was owed billions of naira by debtors.

While assuring of improved power supply in 2020 to customers, he, however, admitted that the company had not achieved 100 per cent in its performance.

In a similar development, the Nigerian Electricity Regulatory Commission (NERC) has directed the Distribution Companies (DisCos) to ensure that electricity consumers are metered by April 30.

This was contained in an order signed by NERC’s Chairman, Mr James Momoh, and Commissioner, Legal, Licensing and Compliance, Mr. Dafe Akpeneye, as published on the commission’s website yesterday.

NERC ordered all DisCos to ensure that all customers on tariff class A1 in their franchise areas were properly identified and metered by April 30 even as it placed limits on estimated bills that could be issued by electricity distribution companies to unmetered customers.

“All other customers on higher tariff classes must be metered by DisCos not later than April 30. Customers will not be liable to pay any estimated bill issued if the DisCo failed to supply meters.

“The customer shall remain connected to supply without further payment to the DisCos until a meter is installed on the premises under the framework work of MAP Regulations or any other financing arrangement approved by the commission.

“Energy consumed for the purpose of estimated billing is capped during the transitional period till the customers are metered. However, the actual amount payable shall vary in the event of any approved tariff reviews affecting their customer class.”