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KEDCO Financial Performance Rebounds Following Power Restoration

By Jabiru Hassan, Kano

Kano Electricity Distribution Plc. (KEDCO) has reported steady improvement in its financial and operational performance following the restoration of power supply after significant disruptions during the September-October 2024 billing cycle.

Power Supply Disruptions Impact Revenue

KEDCO, alongside three other electricity distribution companies in the North East and North West regions, faced severe challenges during October. The company’s operations were heavily impacted following an incident on the Shiroro-Kaduna 330kV transmission line on October 13, 2024, which initially reduced grid supply to 40%. This situation worsened on October 20, 2024, when a total blackout occurred, coinciding with the peak of its revenue collection cycle.

Power supply was partially restored to 40% capacity by October 30, with improvements reaching 85% by November 14. However, full restoration is still awaited, as repairs on the Shiroro-Kaduna line continue.

Financial and Operational Challenges

The blackout marked KEDCO’s worst market performance this year, leading to financial and economic hardships for both the company and its customers. Many customers resorted to expensive backup power sources, while some businesses shut down operations.

During its best-performing months, KEDCO reduced Aggregate Technical, Commercial, and Collection (ATC&C) losses by over 20%, reaching a record low of 40%. The company is optimistic about returning to those levels as power supply stabilizes.

Appeal for Customer Support

KEDCO has recorded significant collections from arrears in recent weeks and is urging customers to promptly settle current bills and outstanding payments to sustain business operations.

“We commend the resilience of our customers and pledge to continuously improve our service delivery for safe and reliable electricity,” the company stated.

Gratitude to Stakeholders

KEDCO expressed appreciation to the Honourable Minister of Power for his intervention during the crisis, as well as the Transmission Company of Nigeria (TCN) for its restoration efforts. The company also acknowledged the Federal Government’s commitment to enhancing grid safety and redundancy.

Plans for Future Improvement

KEDCO reaffirmed its commitment to driving investments and enhancing performance through projects such as embedded generation supply options, Safe Grid initiatives, and the Utility 2.0 projects. These efforts are being carried out in collaboration with tri-state governments under the guidance of the Nigerian Electricity Regulatory Commission (NERC).

The company concluded by emphasizing the importance of continued customer cooperation to realize its vision for reliable and sustainable electricity delivery.

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