Kaduna Electric, one of Nigeria’s electricity distribution companies and integrated utility company Konexa have secured the approval of NERC to make investments in the DisCo that will enable it improve power supply in their franchise area, the company has said.
According to a statement from Kaduna DisCo, NERC approved the sub-concession agreement between Kaduna Electricity Distribution Company (KAEDCO) and Konexa, an integrated energy distribution company registered as ECOF Kaduna Ltd. The agreement will enable Konexa to render electricity services in selected parts of Kaduna Electric’s franchise.
Under the approved arrangement, Konexa is expected to make investments in network infrastructure that will guarantee 24/7 supply of electricity within the sub-concession area to all customers, from large commercial and industrial off takers to low demand residential customers. Konexa’s interventions will also see the roll out of new metering technology, the deployment of off-grid solutions such as mini grids and solar home systems to serve unconnected populations, and the installation of embedded generation capacity where required. Konexa’s integrated distribution model is based on partnerships with existing utilities, bringing cutting edge technologies like smart meters to bear, and delivering a robust customer value proposition for access to reliable power for all, said the statement signed by Abdulazeez Abdullahi, head of Corporate Communication of Kaduna Electric.
Abdullahi said the approval was contained in a letter sent to the Managing Director/CEO of Kaduna Electric by the Chairman, Nigerian Electricity Regulatory Commission, Prof. James Momoh on Wednesday.
According to the statement, the sub-concession agreement shall be subject to all existing and other future regulations as may be determined by the regulator. “ECOF Kaduna Ltd. [Konexa] shall operate under the electricity distribution license of Kaduna Electricity Distribution Company Plc (KAEDCO) as a sub-concessionaire.
The rights and obligations of ECOF Kaduna Ltd [Konexa] under the agreement shall be derived from the existing terms and conditions of license issued to Kaduna Electricity Distribution Company PLC (KAEDCO)”, the approval letter stated.
The Kaduna Electric spokesman stated that the partnership between Kaduna Electric and Konexa is aimed at accelerating much-needed improvements in service delivery.
Yusuf Abubakar, chairman of Kaduna Electric, Yusuf Abubakar said: “This is a win-win partnership that will bring investment, improve quality of service, and ensure Konexa meets remittances obligations and rolls out much needed cost effective off-grid solutions. We have been working on this project together for almost two years now. Konexa and Kaduna Electric have jointly developed a vision and business model to serve all customer segments in the most cost-effective way.
“Konexa will bring investment and expertise that leverages our experience to deliver power to everyone in the sub-concession area without exception. Konexa’s technical teams have been on the ground for 18 months and they also have been working with the customers and communities from who they have full support.”
Pradeep Pursnani, CEO of Konexa, said “This is a big milestone, and a first step of many for the distribution sector in Nigeria and for the Kaduna Electric and Konexa teams. We are grateful for the support from NERC, the Bureau of Public Enterprise and the Rural Electrification Agency and all other key stakeholders that have been part of the journey so far.
“This approval is a first of its kind, and we have been overwhelmed by the community support, the interest from businesses and households that want a more reliable and improved quality of service that both Konexa and Kaduna Electric are committed to delivering. Significant long-term investment is required to deliver our promise to the customers and ensure our solutions are cost effective and affordable.
“This is a scalable and replicable model that we would like to see rolled out across Nigeria. We now have a lot of work to do to deliver to our promise and work with Nigerian investors to unlock long term Naira based funding into Konexa”.
Konexa is incubated by Industry Capital, Shell Foundation, Rockefeller Foundation, UK’s Department for International Development (DFID) and the USAID Power Africa