The Kano Electricity Distribution Company (KEDCO) has stated that the incessant collapse of the national grid in October significantly affected its market performance, marking the worst in the company’s history this year.
It should be recalled that Nigeria experienced repeated grid collapses in October, with the situation worsening in Northern Nigeria due to the Shiroro-Kaduna 330kV line collapse caused by vandalism.
According to a statement signed by Sani Bala Sani, Head of Corporate Communication at KEDCO, the company recorded a 40% Aggregate Technical, Commercial, and Collection (ATC&C) Losses, the worst in its history.
Alhaji Sani explained that ATC&C losses are incurred due to non-payment of bills, energy theft, or outdated distribution equipment.
“Regrettably, the incident resulted in our worst market performance this year. Having zero grid supply posed significant financial and economic challenges for KEDCO and its customers, forcing many customers to rely on expensive backup sources or shut down operations,” he stated.
However, he added, “In our best-performing months, our ATC&C losses dropped sharply by over 20%, reaching a record low of 40%. We are working to return to those levels.”
Alhaji Sani further noted that the company is experiencing steady improvements in financial and operational performance following the restoration of power supply to about 85%.
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“Recall that KEDCO, along with three other distribution companies in the North East and North West, experienced significant disruptions to power supply in October, with KEDCO being the most affected.
“KEDCO’s operations were first impacted on October 13, 2024, when only 40% of our grid allocation was supplied after the Shiroro-Kaduna 330kV line incident. This was further exacerbated by a total blackout on October 20, 2024, which coincided with the peak of our revenue collection cycle.
“Although power supply was partially restored to 40% on October 30, full restoration to around 85% was only achieved on November 14. We are anxiously awaiting the completion of repairs on the Shiroro-Kaduna line.
“With the current power supply level at 85%, we have recorded significant collections from last month’s arrears. We appeal to our customers to cooperate with us by promptly settling their current bills and outstanding arrears for the sake of business sustainability.”
KEDCO commended its customers for their resilience and reaffirmed its commitment to improving the reliability and safety of its electricity supply.
“We thank the Honourable Minister of Power for his timely intervention and visit during the crisis to understand our challenges. We also appreciate TCN’s restoration efforts and the Federal Government’s commitment to improving the redundancy and safety of the national grid.
“Our core investors and board remain resolved to drive investments and enhance performance through embedded generation supply options in our network via the Safe Grid and Utility 2.0 projects. These efforts are in collaboration with the tri-state governments under the guidance of the Nigerian Electricity Regulatory Commission (NERC). We appeal for our customers’ continued cooperation to realize this vision,” the company stated.
KEDCO also urged its customers to ensure timely payment of their bills to enable the company to serve them efficiently with the available energy.
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