AEDC slashes losses, deploys 70,000 meters

The Abuja Electrical energy Distribution Firm has lowered its mixture technical, industrial, and assortment losses from about 42 per cent to 32 per cent inside one yr, because it intensifies metering, community upgrades, and embedded era tasks to enhance energy provide throughout its franchise space.

Managing Director of the distribution firm, Chijioke Okwuokenye, disclosed this on Thursday in Abuja throughout a media briefing the place he highlighted the corporate’s operational milestones and long-term technique to stabilise electrical energy provide.

Okwuokenye stated the corporate had additionally elevated its power consumption by nearly 15 per cent previously yr, describing the expansion as a key indicator of improved provide to prospects.

He stated, “This provides us a possibility to actually inform our story. Within the few years we have now taken over operations at AEDC, we have now made notable strides. We’re not the place we must be, however we have now made progress in investments and repair supply.

Final yr, we elevated our power consumption by nearly 15 per cent in comparison with the earlier yr. These are actual electrons flowing by means of the grid. That, for us, is a measure of progress.”

He acknowledged persistent outages in some communities however famous that community enlargement and new energy sources would progressively deal with the gaps. In response to him, a 350-megawatt era plant being constructed by the Nigerian Nationwide Petroleum Firm Restricted in Gwagwalada would considerably enhance provide in Abuja and surrounding areas.

“We’re working carefully with NNPC to make sure we take up that energy and enhance service supply. By this time subsequent yr, the present stress on power provide, particularly throughout the dry season, will scale back considerably,” he stated.

The AEDC boss additionally linked future enhancements to the completion of the Ajaokuta–Kaduna–Kano gasoline pipeline, which is anticipated to reinforce gasoline availability for energy vegetation within the northern hall.

He stated, “With gasoline availability assured, our reliance on distant grid provide will scale back. This may assist stabilise energy to Abuja and neighbouring states.”

Okwuokenye revealed that the corporate had deployed about 70,000 meters inside the final 14 months below varied initiatives, together with the Meter Asset Fund and the Distribution Sector Restoration Programme. He stated the trouble was geared toward ending estimated billing, enhancing transparency, and boosting sector liquidity.

“Between final yr and the primary two months of this yr, we have now deployed about 70,000 meters. These are actual prospects who moved from estimated billing to credible billing. This improves buyer confidence and ensures that the market turns into extra liquid,” he stated.

He famous that improved income assortment had enabled AEDC to fulfill its market cost obligations and start settling legacy money owed. In response to him, “Prior to now, AEDC was identified for debt accumulation. That’s now previously. We’re assembly 100 per cent of our obligations to the market and paying down earlier money owed.

“When DisCos pay, GenCos pays for gasoline, and the transmission firm can spend money on enlargement. This ensures extra energy for Nigerians.”

The corporate additionally introduced plans to deploy embedded photo voltaic era in underserved places. Okwuokenye stated AEDC supposed to construct three 10-megawatt photo voltaic vegetation round Lokoja, which may very well be expanded as demand grows.

“We’re planning photo voltaic clusters to encompass Lokoja in order that even when the grid provide reduces, we may have sufficient power inside our franchise to fulfill demand. This may guarantee Lokoja residents don’t really feel the influence of lowered provide,” he acknowledged.

He added that the corporate was additionally adopting a franchise mannequin to draw personal funding into difficult-to-serve areas. “The capital requirement in energy distribution is big. By the franchise scheme, we are able to collaborate with buyers who will take over sure areas, spend money on infrastructure, and get well their funding over time. This may assist us enhance service in states like Kogi, Niger, and Nasarawa.”

On rising electrical energy tariffs, the AEDC boss stated the corporate was centered on worth creation quite than pricing, noting that tariffs would ultimately decline as provide improves and losses scale back.

He stated, “Tariffs will ultimately discover their stage. If we scale back losses and develop power provide, costs will come down as a result of electrical energy is a quantity enterprise. No person is completely satisfied charging excessive tariffs.”

He blamed energy theft and vandalism for a part of the sector’s challenges, recounting current instances of power diversion.

“We not too long ago caught a resort diverting energy underground to bypass the meter. Even after disconnection, the client illegally reconnected. These are the losses we’re speaking about. If Nigerians assist us scale back theft and vandalism, tariffs will scale back and provide will enhance.”

Okwuokenye stated discussions have been ongoing with the Federal Authorities on focused electrical energy subsidies to guard susceptible shoppers. He added, “The present tariffs replicate our realities, however they aren’t the tip level. The federal government understands the necessity for focused subsidies. These reforms will unlock sustainable energy.”

Nigeria’s electrical energy distribution corporations have confronted persistent liquidity challenges on account of excessive technical and industrial losses, low metering penetration and weak income assortment.

Business information present that improved metering, cost-reflective tariffs and personal sector funding stay vital to stabilising the facility sector and attaining dependable electrical energy provide.

The AEDC, which serves the Federal Capital Territory, Kogi, Niger and Nasarawa states, is among the key gamers in ongoing reforms geared toward boosting power entry, enhancing grid reliability and supporting financial progress.