FG Approves N153.3Bn Investment In Power Distribution Companies For 2024

Date:

The Nigerian Electricity Regulatory Commission (NERC), acting on behalf of the Federal Government, has approved a sum of N153.2 Billion Capital Expenditure (CAPEX) for the 11 Electricity Distribution Companies (DisCos), effective January 1, 2024.

This move mandates DisCos to implement service enhancement programs aimed at improving power supply, reducing Aggregate Technical, Commercial, and Collection losses (ATC&C), refining billing and payment structures, and upgrading customer metering systems.

The approval, granted through Performance Improvement Plans (PIP) and separate orders following engagements with NERC, encompasses distinct CAPEX packages for each DisCo. The Multi-Year Tariff Order (MYTO) 2024 outlines varying approved CAPEX amounts for DisCos, with Eko Electricity Distribution Company (EKEDC), Ikeja DisCo, and Abuja Electricity Distribution Company (AEDC) securing the highest allocations at N23 Billion, N19 Billion, and N18 Billion, respectively. Yola Electricity Distribution Company (YEDC) received the least with approximately N7 Billion.

Allocated funds are expected to support growth initiatives within service improvement investment programs. A notable portion, N6.25 Billion annually for each DisCo over the period 2023-2027, is designated for the installation of a minimum of 65,000 meters, signaling a move to phase out estimated billing methodologies.

Simultaneously, the Regulator has established new targets for Aggregate Technical, Commercial, and Collection (“ATC&C”) losses. Approved levels, deemed fair and reasonable, reflect current operating conditions and benchmarks within, and outside the Nigerian Electricity Supply Industry (NESI).

For instance, AEDC is set to adhere to new baseline ATC&C loss levels of 25 Percent, 20.6 Percent, 16.97 Percent, and 13.99 Percent from 2024 to 2027. These measures underscore the Commission’s commitment to enhancing efficiency and reliability in the nation’s electricity distribution network.

 

 

 

 

 

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

Boxing: Deontay Wilder To Face Zhilei Zhang On 1 June

American heavyweight Deontay Wilder who recently signed with Matchroom...

Super Eagles Star, Boniface Makes History, Becomes Third Nigerian to Win Bundesliga

Super Eagles of Nigeria and Bayer Leverkusen forward, Victor...

Osimhen, Amusan Make List Of Forbes’ 30 Under 30 Class of 2024

Super Eagles striker Victor Osimhen and track icon Tobi...

STERLING BANK AND AFREXIMBANK LAUNCH INNOVATIVE SUPPLY CHAIN FINANCING SOLUTION

Sterling Bank, in collaboration with the Africa Export-Import Bank...