AEDC requires N25.09b to reduce technical losses in five years

 John Ofikhenua, Abuja

The Abuja Electricity Distribution Company (AEDC) needs N25.09billion to reduce its technical losses in five years.

The power firm disclosed this in its Performance Implementation Plan (PIP) that The Nation sighted at the weekend in Abuja.

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It was prepared for the approval of the Nigerian Electricity Regulatory Commission (NERC).

According to the plan covering 2020 to 2025, the N25.09 bn network investment is required to reduce technical loss from 11.72 per cent to 6.08 per cent.

The company noted that “AEDC will require a total of N25.09bn. in network investment to reduce technical loss from 11.72% to 6.08% at the end of year five (5) of the PIP horizon.”

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The company added that beyond technical loss reduction, the PIP projects will address overall network improvement on quality and reliability of power supply.

The AEDC also explained that implementation of these projects over the period as planned will contribute to improvement in commercial performance of the utility.

It cited an instance with “brown outs or poor voltage profile lead to meter ineffectiveness that contribute to low consumption by customers; thus investments in the network will improve voltage conditions thereby improving commercial performance.

On capital expenditure, the plan proposed to spend NGN 4,454,262,972 CAPEX and NGN 2,431,501,950 OPEX in the next 5 years.”

The fund, according to the PIP, is required to “achieve the robust structured human capacity development, provide adequate control on all unsafe conditions that exposes the public to accident, including fencing of the identified 1,696 exposed distribution substations, closing of feeder pillars and locking systems, procurement of adequate PPE and ensure reliable protection.”

AEDC disclosed that from the Demand Study, load forecast for the next five years shows that network capacity requirement will increase by an average of 6 percent per annum and a cumulative of 26.57 percent over the next five years from 1,129.4MW to 1,429.5MW.

On anti-vandalism and energy theft, the plan noted that the company is strategising to reduce vandalism in areas/locations prone to vandalism by regular interface with the Chiefs, vigilante groups and opinion leaders of the areas, and where necessary encourage them with some monthly or quarterly stipends as compensation for non-occurrence of vandalism in their areas/location and presentation of Awards at the end of the year.

It added that it is planning to use Corporate Social Responsibility tools to enter into a partnership and mutual relation with communities with high vandalism tendencies.

“AEDC will continue to actively pursue the passage of the draft legislation of Electricity Offences,” it insisted.

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