Electricity distribution across the North Eastern part of Nigeria, affected by insecurity may be returning to profitability and improved performance as data from the Nigerian Electricity Regulatory Commission (NERC) showed a 100 per cent remittance from the Yola Electricity Distribution Company (YEDC).
Investors, who took over the assets at privatization had deserted the utility company over insurgency over six years ago, in 2021, the company was handed over to Quest Electricity Nigeria Limited (QENL), Subsidiary of Mainstream Energy Solutions Limited.
In the third quarter of 2023, NERC said, only Yola Electricity Distribution Company and Eko Distribution Company remitted 100 per cent of their invoices to the Nigerian Bulk Electricity Trading Company (NBET) and the Market Operator of the Transmission Company of Nigeria (TCN).
This comes as NERC struggles to enforce performance in the electricity industry amidst liquidity crisis and poor service delivery.
Amidst the infrastructure destruction in the region due to insecurity, the company had committed to a Performance Improvement Programme (PIP) with an investment of N28 billion, which aimed at reducing Aggregate Technical, Commercial and Collection (ATC&C) losses from 80 per cent being the highest among the DisCos so far to 29 per cent.
NERC disclosed that it had approved the utility’s proposed review to reset its new baseline ATC&C loss levels to 56.00 per cent, a development that would see the losses come down to 23.16 per cent in 2027.
Acting Head of Corporate Communications, YEDC, Peter Cheman Koti, said the performance is a testament to the transformation that the company has undergone in the past two years since takeover.
He noted that the firm has committed significant resources to improve the infrastructure, technology, and human resources, with a vision to deliver reliable electricity to its customers.
“YEDC has constantly demonstrated its commitment to adhering to the highest standards of corporate governance, ethics, and social responsibility, creating a virile work environment for all staff. Before the new management took over in January 2022, the company was one of the worst-performing distribution companies in Nigeria with an ATC&C loss of 80 per cent.
“Remittances to the market were less than 30 per cent of what is being achieved today as captured in the regulator’s quarterly report. Today, that same company is remitting 100 per cent to the market, with a drastically reduced average ATC&C of 56 per cent and a billing efficiency of 100 per cent,” Koti said.
He noted that the parent company had single-handedly revived ailing dams in the country, optimizing their performance and providing clean energy to homes and businesses in Nigeria as such the performance in the downstream segment of the market is not surprising.
