AEDC seeks Senate intervention in power sector’s liquidity crisis

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AEDC seeks Senate intervention in power sector’s liquidity crisis

The Abuja Electricity Distribution Company (AEDC) has solicited the intervention of the Nigerian Senate in resolving the liquidity challenge faced by the Nigeria Electricity Supply Industry (NESI).

AEDC CEO, Engr. Ernest Mupwaya in a presentation to the Senate Committee on Privatisation led by the Vice Chairman, Dr. Yahaya Abdullahi in Abuja on Thursday, urged the Senate to intervene and ensure the prompt payment of electricity bills by Ministries, Departments and Agencies (MDAs) of government.

Mupwaya also sought the support of the upper legislative house in ensuring a cost reflective tariff for the sector, pointing out that a cost reflective electricity tariff would end the deficit it records in buying electricity from the GenCos at a higher cost and only permitted to sell at about 50 percent deficit rate.

He disclosed that the company has invested N19 billion as capital expenditure to improve its networks and services in its franchise area including the Federal Capital Terrotory (FCT) in the past four years.

Represented by AEDC Director of Corporate Services, Mr Abimbola Odubiyi, he said the new owners of the distribution company have worked very hard to improve infrastructure in the area.

According to him, “In Abuja area, the improvement in power supply has gone up tremendously and there are hardly people who complain that they don’t have power. There are places enjoying 24 hours, others are 12 hours but in Abuja metropolis, the average is 18 hours,” he noted.

He said before the power sector privatisation in 2013, about 90 million were not connected to the national grid and the losses were over 50 per cent.

However, with the over N19 billion investments, the Distribution Company (DisCo) has reduced its Aggregate Technical, Commercial and Collection (ATC&C) losses to 24.92 per cent by October 2018 while being rated among the three top performing DisCos.

On the mission of the Committee, Dr Abdullahi said the oversight visit was to help identify the problems of the DisCo on poor power supply, poor revenue collection and the liquidity crisis so the Committee can intervene in the power sector

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