NERC Reviews Rates for Electricity Distribution Companies Amid Challenging Conditions”
Nigeria experienced a significant 16.4% week-on-week drop in electricity generation, bringing it down to 3,501.20 megawatts (MW) from the previous 4,187.6 MW recorded last Thursday. The decline has been attributed to various factors, including the poor state of power plants and insufficient gas supply to thermal plants.
As a consequence of the reduced electricity generation, Electricity Distribution Companies (DISCOs) have been compelled to initiate load shedding measures. This strategic step aims to distribute the limited electricity supply to a larger number of consumers at different times.
Amid the challenging situation, the Nigerian Electricity Regulatory Commission (NERC) has received applications for rate review from eleven electricity distribution companies. The rate review request is driven by the need to incorporate changes in macroeconomic parameters and other factors impacting service quality, operational efficiency, and long-term sustainability of these companies.
In a noteworthy development, Powercom Smart Grid Nigeria (PSGN), a subsidiary of Powercom, has made a significant move by acquiring Kano Electricity Distribution Plc (KEDCO). PSGN specializes in delivering end-to-end Smart Grid and Smart Metering solutions.
According to a statement from PSGN, the acquisition presents a remarkable opportunity for KEDCO to implement a comprehensive turnaround plan aimed at improving performance and efficiency. The PSGN Turnaround Plan encompasses a strategic approach to address the challenges faced by KEDCO and transform it into a highly efficient and financially viable electricity distribution company, serving approximately 5 million customers.
The plan focuses on various aspects, including revenue enhancement, operational performance optimization, revenue collection, customer service improvement, and overall system reliability. PSGN will equip KEDCO with smart electricity endpoints and a comprehensive backbone infrastructure to effectively manage the grid.
The project’s objectives are to upgrade the existing distribution grid into a modern platform, addressing essential services such as revenue enhancement, reduction of energy losses, debt recovery, outage reduction, grid optimization, asset recording, asset protection, peak load management, workforce automation, and improved customer service. PSGN’s ‘turnkey’ solution encompasses the Vending Platform and a Control Room with GIS visualization for efficient grid management.
The acquisition by PSGN and the implementation of the turnaround plan underscore the ongoing efforts to address Nigeria’s electricity challenges and ensure a more efficient and reliable power distribution system for the benefit of the country’s consumers.
