March 1, 2024

MDAs’ electricity debt to EKEDC hit N40billion, as Dr. Tinuade plans to achieve N200bn annual billing, collection in 2023

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Oedola Adeola

Eko Electricity Distribution Company said that Ministries, Departments, and Agencies, MDAs’ debt under its franchise area rose to N40billion (34.48%) out of 116 billion total debt owed by customers as of December 2015, revealing a plan to achieve a total annual billing and collection above N200 Billion in 2023.

Dr. Tinuade Sanda, Managing Director/Chief Executive Officer, EKEDC mentioned this during a media parley organised by the company with energy correspondents on Thursday to review programmes initiated by the new management of EKEDC in 2022 and plans for 2023.

According to her, the EKEDC recorded a Year-on-Year average monthly collection of N3.62bn within 3 years (2020 – 2022)

Dr. Tinuade said upon the assumption of office as the MD/CEO in March 2022, EKEDC has grown in leaps and bounds achieving milestones and landmarks.

EKEDC’s MD added that the Company recorded 15.69% and 16.97% in July and August 2022 respectively, being the best in EKEDC’s ATC&C losses in history.

She revealed that ATC&C’s Year-on-Year reduction was 5.5% in three years (2020 – 2022). She noted that EKEDC recorded the lowest annual average ATC&C loss of 23% in 2022, promising that EKEDC will achieve an average ATC&C loss ranging between 18.92% and 21.55% in 2023.

She confirmed that the Strategic Roadmap Document, outlining proposed steps for improving operational efficiencies and infrastructure improvement for implementation, initiated in 2022 by her management team has yielded landmark results.

The EKEDC’s Boss said, through the Roadmap, the company achieved its best performance across the board, thereby retaining its position as the leading DISCO in Nigeria in terms of making 100% remittances to the electricity market.

She said, “While the majority of DISCOs existence faced uncertainty following corporate actions taken by creditors of their investors in collaboration with NERC and BPE, EKEDC has avoided various regulatory and corporate actions due to its continuous improvement initiatives and performances.

“EKEDC maintained the highest safety levels in the sector by attaining its NERC’s Order on Performance Monitoring Framework (Key Performance Indicator- KPI) for all DISCOs which became effective from 1st October 2022, following the expiration of the term of the Performance Agreements executed between BPE and the Core Investors of EKEDC in December 2021.”

She also disclosed that EKEDC’s customer population increased by 93,112 to 653,449 customers from 560,337 customers recorded in November 2022.

Speaking on the impact of constant vandalization of EKEDC’s facilities and equipment, Dr Tinuade said that cable theft, vandalism of distribution infrastructure, and transformers by saboteurs cost the EKEDC over N5 billion.

According to her, the persistent attack on distribution installations is being addressed through the intervention of the law courts and collaboration with security forces including Community Associations, Nigerian Police, Nigeria Security and Civil Defence Corps, and the Army.

She also identified some of the challenges facing EKEDC, to include constant damage to EKEDC facilities by Road Contractors and Lagos State Agency’s delay in approving permits to clear faults.

Dr. Tinuade said, “EKEDC took receipt of 150 out of 200 transformers in 2022, to ease the burden of overloaded transformers. Meanwhile, about 80 transformers have been installed, while our engineers are working on the remaining.”

She also said that EKEDC is working to ensure a minimum of 20 hours of uninterrupted power supply in the Island District which comprises Lagos Island, Ikoyi, and Lekki.

According to her, we have initiated round-the-clock technical shifts for Island and Lekki Districts.

She said that the management of the company also enhanced the vehicle fleet with 15 new vehicles to improve 24hrs fault-clearing turnaround time and boost the operation. we also established Rapid Response Squad in Central Circle.

She also revealed the company’s plan to migrate all customers in Band D/E to upper Bands A-C by improving network health in the year inview.

EKEDC’s MD said, “We also purchased statistical meters to cover all existing feeders for effective monitoring and enhancing improvement in commercial losses.

“This is geared towards ensuring that we can accurately account for energy and reduce commercial leaders.

“The metering of the feeders and transformers has helped us to improve billing efficiency.”

Speaking on metering, Tinuade revealed that about 30,000 meters have been distributed to customers after the successful launch of Mobile MAP with kick-off at Festac and subsequently across the network in 2022, to enable customers to apply and secure meters within 72 hours.

She said, “We have also engaged quite a number of Independent Power Producers (IPP) in embedded generations and mini-grid, in an attempt to improve our power supply agreement to customers in the network.

“One of such is the evacuation of 100MW from NDPHC, which took effect in August 2022, as well as partnerships with Viathan, and VI Power, all initiated through a bilateral arrangement. We would be engaging more IPPs in the course of the year(2023) for improved power supply to our customers.”

Dr. Tinuade however promised EKEDC’s commitment to the full settlement of electricity market invoices in line with the NERC Minimum Remittance Order, to build on an already established reputation of attaining NERC KPIs and maintain the highest safety levels in the sector.

She also revealed the plan by the company to launch a transformer and equipment repair workshop, inaugurate the EKEDP Training Institute as well as the recruitment of talent.

According to her, we are committed to achieving profitability, while declaring and paying dividends to shareholders of EKEDC.

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