THE management of Eko Distribution Company (EKEDC) has re-emphasized the need for huge investment as panacea for power sector development in Nigeria.
Speaking with the Nigerian Tribune recently, the Managing Director/Chief Executive Officer, EKEDC, Dr Oladele Amoda, argued that investment is very critical to power sector development despite difficult operating environment in Nigeria due to economic recession.
According to him, “our investors recently obtained loan running into billions of naira to fortify the network. Out of the loan obtained, N630 million was used to obtain 100 500-KvA transformers to be added to the 30 500-KvA transformers in stock totalling 130 transformers to be deployed in other to address the challenge of load shedding.”
When asked how the investors secured the loan at a time when most banks are not willing to extend credit facility to utility companies, he posited that the company’s investors are people of integrity and risk takers as well.
“Our investors must be commended for timely intervention each time we run to them for support. At this time, banks are not friendly to investors because of economic challenges ranging from unfriendly foreign exchange rate regime to illiquidity in the economy.
“Because we noticed that during Yuletide season, activities are always high and energy consumption is always at the peak. We looked at our network and realized we need to make investment at boosting our distribution capability by replacing faulty transformers and also provide new transformers to decongest some transformers that were experiencing load shedding.
“That’s why they helped us get over N600 million from Zenith Bank Plc as a loan and we used it to buy the 100 500-KvA transformers. In next two weeks, we will replace all faulty transformers within our zone. Customers are the reason we are in business and power is the only commodity we sell and we will ensure that the little we get from the grid is adequately utilised,” he said.
He urged customers to reciprocate by settling their debts, stop energy theft and vandalism of equipment.
“We lost over N1 billion monthly to energy theft which isn’t encouraging. Nigerians should also help us fight vandalism. Recently, vandals entered our premises and carted away with cables worth several millions of naira.
“It may alarm you if you hear what we spend on repair of these vandalized equipments. A liter of cable costs N40,000 and a drum of cable contains 250 liters. That’s N10,000,000 for a drum of cable irrespective of equipments that will be needed to fortify the network. Two power transformers of 15-MVA cost N200 million to acquire at the present exchange rate,” he said.
Furthermore, he argued that “We cannot continue to invest huge sum of money into network improvement like we are doing and some people will be allowed to vandalised such equipment. We have commenced bill reconciliation and verification exercise tagged Eko Customer Account Reconciliation Exercise (CARE), this is a way of repackaging energy audit to give it a caring face.
“Customers with wrong connection leading to energy theft can come to us on their own for ratification without being penalized. Those who wait till we discover meter by pass or energy theft will however be penalized. There are so many other good plans aimed at improving our services to our customers in the New Year.”
He, however, concluded by informing the public that his company wants more power from generation companies (Gencos) to boost supply to EKEDC customers.
Recently, EKEDC signed a partnership agreement with a global brand, Huawei of China and Mojec International meter manufacturer to supply prepaid meters and boost the company’s revenue collection process.
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