Yola Disco projects low performance due to insecurity in N/East
Yola Electricity Distribution Company Plc (YEDC) has projected poor performance from 2020 to 2024 if the current security situation in the north east region remains unchanged.
The Disco gave the projection in its five-year improvement plan and application for extraordinary tariff review which was signed by its Managing Director, Baba Mustapha and addressed to the Nigerian Electricity Regulatory Commission (NERC).
The report said the Integrated Energy Distribution and Marketing Limited, which won the bid to distribute electricity in the region in 2013, was in the process of managing their exit and no bank financing or other equity would be available given the projected balance sheet.
It noted that at the time of handover, the estimate of verified customer numbers was 177,893, stressing that this had reduced significantly as a result of the insurgency in the areas under their network of operations.
“The security situation in the Yola franchise area has to date made achievement of the business plan impossible. The insurgency has made it impossible to issue bills and collect payments in the affected business units” it said.
According to the report, completely disconnecting the affected units was not a practical course of action.
It said continuing power supplies to the affected regions were requested to allow the military bases to continue to function, adding that YEDC has an obligation to supply to its customers and reducing the supply would aggravate the challenges they have to face.
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“Once it became clear that the losses were set to continue indefinitely, IEDM declared political force majeure under the performance agreement and exercised the put option.
“They also suggested a number of potential actions to mitigate the impact and allow the management of YEDC to continue. The long term solution has not yet been resolved,’’ the report said.
