Eko DisCo earmarks N18b for capital expenditure
Chief Executive Officer, Electricity Distribution Company (EKEDC), Dr Tinuade Sanda, says the company has earmaked N18 billion for capital expenditure for the year.
Sanda said this at a news conference on Thursday in Lagos.
She said the company would focus more on rehabilitation of equipment within its network, assets replacement and also improve on service delivery.
According to her, the company’s capital expenditure plan for the year will cost about N18 billion.
“Last year, we also spent close to that and it’s expected we spend within that range because we have a lot to do on customer satisfaction.
“We will continue network rehabilitation that we embarked upon, it is until that is done that the consumer will feel the impact of the improve service delivery,” she said.
The CEO said the company was making efforts to improve electricity supply to its customers, and that it was currently reinforcing its network and exploring embedded generation to complement supply from the national grid.
She said the company had a drive towards improving customer service in 2023.
“Our focus is effective service delivery to consumers within our network.
“In 2022, the company implimented metering regulation and also drove the regulations.
“In the last three years, the Disco grew the customer data base by additional 93,000 customers.
“As at December 2022, we closed with about 660,000 customer base,” she said.
On vandalism in 2022, she noted that the company recorded huge vandalism of power equipment, while the Lagos State government and security agencies were involved in equipment protection.
According to her, some arrested vandals are being prosecuted.
“As at last counting, we lost about N2.5 billion, but if we evaluate it with the current price of cable it’s worth over N5 billion,” she said.
Sanda said Ministries, Departments and Agencies (MDAs) owed the Disco over N40 billion as at December 2022, while the total debt profile of the company stood at over N116 billion as at December 2022.
Sanda said the company was able to reduce Aggregate Technical and Commercial (AT&C) losses by 5.5 per cent between 2020 and 2022.
“And also in terms of average monthly collections, we have been able to grow this with additional N3. 62 billion.
“Most of the challenges started from system outages, which was attributed to gas shortage and vandalism in the beginning of year 2022.
“But we recorded slight improvement of power supply and allocation from Transmission Company of Nigeria (TCN) towards end of 2022.
“The Disco also engaged in bilateral power generation; outside the TCN allocation, we had an agreement with Niger Delta Power Holding Company (NDPHC) on 100mw,” she added.
Sanda said the company also had 15 additional vehicles approved to boost its operation.
The CEO said the Disco had commenced rehabilitation of equipment to reinforce its network.
She said the company had also started addressing underground faulty cables within its network.
“We have also added 150 transformers to the network out of the 200 approved by the board, and they have been installed to address faulty transformers,” she said.
She commended the security agencies for their support towards addressing vandalism.
“We also commend our esteemed customers for support in protecting the company’s equipment,” the CEO said.
Sanda noted that tariff was increased on Dec. 8, 2022 for EKEDC customers within bands A and B.
She said customers in those areas were having electricity supply for between 18 and 20 hours, but that it was not applicable to all consumers within the network.
She said gas remained a large component used in generating power and it was sourced with dollars, adding that “we all know what foreign exchange is today.
“The exchange rate has increased and we need to reflect on the current reality on tariff due to increase in foreign exchange differential.
“We need to pay the gas company for us to deliver effective service to consumers.”
Sanda said the company planed to engage in Independent Power Project (lPP) for embedded generation, Mini-Grids, among others in 2023 for improved power supply.
She said the company also planned to inaugurate EKEDC training institute.
“We plan to open transformer and equipment repair workshop and also have programmes on renovation, rehabilitation and restoration of office buildings.
“We also plan to achieve average ATC&C loss ranging between 18.92 per cent and 21. 55 pwr cent.
“We also hope to achieve profitability while declaring and paying dividend to shareholders and also record zero fatality and injuries,” she added
