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Kano Disco achieves 80% billing efficiency, cuts losses by 20% in 6 months

Kano DisCo targets 60mw of solar power with 41 new mini-grids

Kano Electricity Distribution Company (KEDCO) has recorded an improved performance and reduction in aggregate technical, commercial, and collection (ATC&C) losses since its acquisition by Future Energies Africa (FEA) six months ago.

In a statement by the DisCo, KEDCO recorded 80 percent billing efficiency in June 2024 up from 75 percent in January 2024, and also reduced ATC&C by almost 20 percentage points to a record of 42 percent.

In November 2023, FEA acquired the highest stake in KEDCO and has since embarked on reforms geared towards business turnaround and sustainable transformation of the Company.

According to DisCo, about 52 feeders receive between 20 to 24 hours of supply (including 11 recently upgraded) through investments and improved service delivery.

The statement read: “These achievements are not merely coincidental but conscious efforts by KEDCO’s Board and Management, with ample support from the core investor, Future Energies Africa through investment efforts and constant adoption of effective mechanisms to expeditiously address extant challenges towards making KEDCO financially self-sufficient.

“Prominent among the recent challenges overcome was the dispute with the Manufacturers Association of Nigeria (MAN), over the April 2024 supplementary tariff order which has now been resolved and KEDCO, in its customer-centric spirit urged for a round-table reconciliation approach, while reaffirming its continuous support for the prosperity of businesses and economic activities in the area.

“KEDCO recently revamped top management with the addition of a new Chief Technical Officer (CTO) – Engr. Kassim Burkullu, who recently managed AEDC’s large network; a new Chief Commercial Officer (CCO) – Dr. Abubakar Jimeta, a seasoned industry professional; and two Special Directorates for Special Projects and Customer Solutions, manned by veterans – Engr. Inuwa Daneji and Engr. Shuaibu Adeiza.”

According to KEDCO, the Company has invested over N1 billion to deploy over 100 High Voltage smart Maximum Demand (MD) meters. Also, the deployment of over 3,000 prepayment meters on Band A feeders, through MAP vendor financing, all geared towards mitigating billing and commercial losses.

“Similarly, check meters have been installed on all major commercial feeders with high losses and bifurcation of those feeders, for improved power distribution, efficiency, and energy accountability which has led to a significant reduction in losses and improved collection efficiencies.

“In the area of network reliability, the management has initiated expansion efforts in a bid to foster efficiency in service delivery and meet service-level agreement commitments. KEDCO’s projection is to achieve 25 percent ATC&C losses by year-end while meeting 100 percent market obligations as the NESI transitions to a Bilateral trading market.”

Abubakar Yusuf, the Acting Managing Director,  said that the DisCo at all levels has prioritised collaboration, partnership, and regular stakeholders’ engagements within the government, traditional, security, political, religious, and community partners to drive progress.

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