• Sunday, May 26, 2024
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Eko DisCo records lowest technical, commercial losses

Eko DisCo records lowest technical, commercial losses

Eko Electricity Distribution Company (EKEDC) has announced that it has registered the lowest aggregated technical, commercial, and collection losses (ATC&C) in its history.

The term “technical” losses refers to the loss of electricity through the distribution system due to factors like obsolete or inefficient power cables and equipment. This is electricity that never gets to the customers.

“Commercial” losses occur when consumers steal electricity, by tampering with their electricity metres to make it appear they are using less than they are. This is electricity theft.

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In a letter addressed to the company’s chairman, the acting managing director and chief executive officer, Rekhiat Momoh, stated that the impressive performance showed that EKEDC’s ATC&C decreased to 10.51% in March 2024 from 30.87% in February.

According to Momoh, “This monumental achievement is not just about numbers. It symbolizes our team’s readiness and resolve to ensure improved performance. Looking ahead, we are using this momentum to propel us further. We will continue to challenge ourselves, push boundaries, and strive for greater heights”.

Emmanuel Okoh, an energy specialist, commended the feat, stating that it was the product of Momoh’s good leadership as interim managing director of the firm following the removal of Tinuade Sanda, the immediate past managing director.

Okoh stated that March was historic for EKEDC, as the business billed a staggering 15.8 billion and collected N15.7 billion, representing a collection efficiency of 99 percent.

He said that while the team’s collective will and commitment to excellence demonstrated a collaborative attitude and dedication to excellence, it also represented readiness and readiness to ensure increased performance.

He added that “Collection” losses occur when the distribution company (DisCo) is unable to fully collect payment from customers for the electricity they have used. Customers may not pay their bills for various reasons.

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“Reducing these ATC&C losses is crucial for DisCos to become more financially viable and provide reliable, affordable electricity to customers. Industry experts estimate that ATC&C losses in Nigeria range from 29-59% – much higher than the 10% seen in developed countries.

“To address this, DisCos are trying strategies like installing smart meters to better monitor usage and prevent theft. They are also working to improve billing and collection processes. Ultimately, tackling ATC&C losses is key to improving the overall performance and sustainability of Nigeria’s power sector,” he added.