Kano DisCo Records 80% Billing Efficiency In 6 Months

Tunde Bakare

Kano Electricity Distribution Company (KEDCO) is making financial progress following sustainable interventions to drive efficiency across its network.

The DisCo under the ongoing initiative recorded significant performance improvement and reduction in aggregate technical, commercial, and collection (ATC&C) losses since its acquisition by the new core investor – Future Energies Africa (FEA).

Confirming this Head, Corporate Communications of the firm Sani Bala Sani, revealed that Company recorded 80 per cent Billing Efficiency in June 2024 up from 75 per cent in January 2024 and also reduced ATC&C by almost 20 percentage points to a record of 42 per cent.

It would be recalled that in November 2023, Future Energies Africa (FEA) acquired the highest stake in KEDCO and have since embarked on reforms geared towards business turnaround and sustainable transformation of the Company.

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

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, said Sani.

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.

Also, the DisCo, 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.

During this period, the Company has invested over ₦1bn 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.

The company’s management has been tasked with turning the business around and are working round the clock to continue driving improvements.

The Acting Managing Director, Abubakar Yusuf stated that, “ At all levels, we have prioritized collaboration, partnership, and regular stakeholders’ engagements within the government, traditional, security, political, religious, and community partners to drive progress.

If KEDCO succeeds our communities succeed so it has to be a team effort.”