KEDCO Revamps Operations, Slashes Losses in 6 Months

August 15, 2024 Mustapha Salisu

By Mustapha Salisu

The Kano Electricity Distribution Company (KEDCO) has reported substantial improvements in performance and a significant reduction in aggregate technical, commercial, and collection (ATC&C) losses within just six months following its acquisition by the new core investor, Future Energies Africa (FEA).

This was contained in a statement issued to Prime Time News today by KEDCO’s Head, Corporate Communication, Sani Bala Sani.

According to Sani, since January 2024, KEDCO’s billing efficiency has increased from 75% to 80% by June 2024. The company has also successfully reduced ATC&C losses by nearly 20 percentage points, bringing them down to a record low of 42%.

He added that this progress follows FEA’s acquisition of the majority stake in KEDCO in November 2023, which marked the beginning of extensive reforms aimed at turning around the business and achieving sustainable transformation. “These efforts have led to a significant improvement in power supply, with around 52 feeders now receiving between 20 to 24 hours of electricity, including 11 feeders that were recently upgraded” Sani noted.

He further disclosed that KEDCO’s Board and Management, with full support from Future Energies Africa, have been instrumental in these achievements. The core investor has made substantial investments and implemented effective mechanisms to swiftly address challenges, positioning KEDCO on the path to financial self-sufficiency.

According to Sani “one of the key challenges recently addressed was the dispute with the Manufacturers Association of Nigeria (MAN) over the April 2024 supplementary tariff order. KEDCO, adopting a customer-centric approach, resolved the issue through round-table discussions, emphasizing its commitment to supporting local businesses and economic activities in the region”

“KEDCO has also made significant changes to its top management team. The company recently appointed a new Chief Technical Officer (CTO), Engr. Kassim Burkullu, who previously managed AEDC’s large network; a new Chief Commercial Officer (CCO), Dr. Abubakar Jimeta, a seasoned industry professional; and introduced two new Special Directorates for Special Projects and Customer Solutions, led by veterans Engr. Inuwa Daneji and Engr. Shuaibu Adeiza” the Statement revealed.

Sani however revealed that in the last six months, KEDCO has invested over ₦1 billion in deploying more than 100 High Voltage smart Maximum Demand (MD) meters and over 3,000 prepayment meters on Band A feeders, aimed at reducing billing and commercial losses. The company has also installed check meters on all major commercial feeders with high losses and bifurcated these feeders to improve power distribution, efficiency, and energy accountability which has led to a significant reduction in losses and improved collection efficiencies.

“To enhance network reliability, KEDCO has initiated expansion efforts to meet service-level agreement commitments and foster efficiency in service delivery. The company aims to reduce ATC&C losses to 25% by the end of the year while meeting 100% of its market obligations as the Nigerian Electricity Supply Industry (NESI) transitions to a bilateral trading market” he noted.

On his part, the Acting Managing Director, Abubakar Yusuf, highlighted the importance of collaboration, partnership, and stakeholder engagement in driving progress. “At all levels, we have prioritized collaboration, partnership, and regular stakeholder 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,” Yusuf stated.