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Tag: AEDC

  • AEDC’s questionable N47b debt

    AEDC’s questionable N47b debt

    • But it is shocking that the State House and big MDAs are among the debtors

    Last week, Abuja Electricity Distribution Company (AEDC) threatened to cut off power supply to the State House, the Ministry of Power, and 84 other ministries, departments and agencies (MDAs) of the government over a N47 billion debt due as of December 2023.

    State House was said to be owing about N923m.

    The DisCo said attempts to make the debtor-agencies pay up failed and gave them a 10-day notice due to expire today, to pay up or risk disconnection.

    According to AEDC, the chief of defence staff, barracks and military formations topped the debtors’  list with a staggering N12 billion debt, followed by the Ministry of the Federal Capital Territory (FCT), with N7.5 billion, Federal Ministry of Finance had an outstanding balance of N5.4 billion. Other big time debtors included the Federal Inland Revenue Service (FIRS), Federal Ministry of Education, governor of Central Bank of Nigeria (CBN), Ministry of Foreign Affairs, Federal Ministry of Budget and Planning, Federal Ministry of Culture and Tourism, Ministry of Interior, Head ECOWAS and Federal Ministry of Transport.

    It is gladdening that President Bola Ahmed Tinubu was sufficiently worried that the State House was listed among the debtors and immediately directed the management to promptly reconcile the figures with the AEDC and settle the confirmed outstanding.

    But it is shocking that contrary to the N923m that the State House was said to be owing, the figure dropped to about N342m after reconciliation. This is a difference of a whopping N581m. The question now is: from where did this creep in?

    Without doubt, we should worry that the State House debt was allowed to get this high in the first place. This is the seat of government and it should lead by example. If the State House would not pay its utility bills promptly, what moral right does it have to urge or compel other public utility debtors to pay?

    Apparently, some people in charge of utilities must have been derelict in their duties for this to have happened. Such persons must shape up or ship out. We cannot tolerate such laxity that gives a negative image to the State House.

    Beyond that however is the ‘crazy billing’ menace that has also been discovered in the huge difference between what the State House was said to be owing and its actual debt. There is no gainsaying that such discrepancies would have occurred in the case of the other debtors. We therefore urge proper reconciliation of all the accounts to determine the actual debts owed by the MDAs. Payment should only be made for goods purchased or services rendered.

    Read Also: Be patient with us, Speaker Abbas appeals to Nigerians

    It is good that electricity customers like the State House and other notable MDAs have a taste of over-billing that has become the lot of millions of hapless electricity consumers who bear such injustice in silence, in the absence of prepaid meters. Several discrepancies arising from over-billing would have been avoided if prepaid meters had been provided. We urge the government to lay more emphasis on all electricity consumers being provided prepaid meters. This is the only way to ensure fairness for both the DisCos and their customers.

    All said, the Federal Government must, moving forward, ensure that MDAs pay for services that they enjoy as and when due. They all have budgets for these utilities, so, it is only corruption or laxity, or both, that would make them accumulate utility debts until they run into billions.

    If it is convenient for the service providers, which we also doubt, it should not be for the government and its MDAs. Businesses thrive when customers pay promptly for goods and services. We cannot insist on improved power supply if consumers do not pay for such services. The DisCos are not father Christmas. So, much as they should not be allowed to fleece Nigerians, Nigerians too must fulfill their own part of the bargain.

  • AEDC: Government as delinquent customers

    AEDC: Government as delinquent customers

    SIR: The recently published list of Ministries, Departments and Agencies with long outstanding unpaid bills for services rendered to them through the provision of electricity supply by Abuja Electricity Distribution PLC (AEDC) raised serious concerns about the future of the country.

    A total of over N47 billion is recorded to have been the amount being owed AEDC by agencies of government, the sum of which have been duly appropriated by the National Assembly at one plenary or the other.

    This lamentable operational disruption of Abuja DISCO due to impunity displayed by the delinquent government agencies and departments is what other DISCOs are experiencing across the states of the federation.

    A situation where the nation is practically enveloped in darkness, where factories and small and medium scale enterprises are folding up, and households made to spend hard earned money on diesel cannot bode well for the future.

    Leading this catalogue of infamy with over one billion debt are the Ministry of Education, Central Bank of Nigeria, Nigeria Police Force, Kogi State Government Liaison Office, Ministry of Health and Clerk of National Assembly.

    Read Also: N47b debt: AEDC threatens to cut power to Aso Villa, CBN, FIRS, other MDAs

    Others with over N2 billion indebtedness are Ministry of Petroleum, Niger State Government Liaison Office, Ministry of Finance, FCT Ministry.

    The AEDC directory puts Chief of Defence Staff – barracks and military formations over the top of the delinquency with a record N12 billion indebtedness.

    The National Assembly should commence investigations into these anomalies starting in-house with the Clerk of The National Assembly.

    Economic and Financial Crimes Commission, EFCC should prosecute erring officials of the listed agencies of government for negligence and violation of laws under the appropriate act.

    An Appropriation Act is a proposed law that authorizes the expenditure of government funds. It is a bill that authorises amounts to be issued from the public accounts and applied for services in a financial year. When passed by the National Assembly, it becomes a legal instrument to which all agencies and parastatals are expected to comply with.

    Unless appropriate actions are taken against those complicit in running the DISCOS out of business with their unhinged indebtedness, the nation’s power sector will remain comatose and further investment will go down the drain.

    For the minister of power whose only policy strategy is to remove the last subsidy on power, it is high time he started thinking out of the box. How can you leave a low hanging means of resuscitating the DISCOS through a judicial recovery of these humongous debts to the lazy and anti-people’s choice of removing subsidy? It’s not adding up.

    • Bukola Ajisola, bukymany@yahoo.com
  • N47b debt: AEDC threatens to cut power to Aso Villa, CBN, FIRS, other MDAs

    N47b debt: AEDC threatens to cut power to Aso Villa, CBN, FIRS, other MDAs

    The Abuja Electricity Distribution Company (AEDC) yesterday threatened to disconnect  electricity supply to the Presidential Villa, including 86 Ministries, Departments and Agencies (MDAs) of government over N47.1 billion debt. It gave the defaulting entities 10 days moratorium to comply and defray the debts or risk blackout from February 28.

    Among the list of debtors are: the Chief of Defence Staff- Barracks and military formations owing over N12 billion, Ministry of the Federal Capital Territory (FCT) (N7.5 billion); Ministry of Finance (N5.4 billion) and Niger State Liaison Office, Abuja (N3.4 billion).

    Others include Ministry of Petroleum Resources, Ministry of Education; Central Bank of Nigeria (CBN); Nigeria Police Force; Nigerian Immigration Service (NIS); Ministries of Finance; Information; Budget; Works; Housing; Economic and Financial Crimes Commission (EFCC); Federal Inland Revenue Service (FIRS); Federal Airports Authority of Nigeria (FAAN) and state liaison offices in the FCT.

     “The Abuja Electricity Distribution PLC is constrained to do this publication with the details of Government, Ministries, Departments and Agencies with long outstanding unpaid bills for services rendered to them through the provision of electricity supply in that our previous attempts to make them honour their obligations have not achieved the desired results,” the notice read.

    “The relevant MDAs are hereby given notice that the AEDC shall after the expiration of 10 days from the date of this publication, that is, after Wednesday, 28th February, 2024, embark on the disconnection of our services to them until they discharge their obligations to us by paying their debts.”

    Read Also: EFCC quizzes ex-Gov Ahmed over alleged diversion of N10bn

    Nigeria’s power generation sector has been embroiled in debt burden for years. Last week, the Minister of Power, Adebayo Adelabu, warned electricity Distribution Companies (DisCos) to sit up otherwise any of them found wanting will have its licence withdrawn.

    The Bureau of Public Enterprises (BPE) had also disclosed plans to sell off the remaining 40 per cent shares of the Federal Government in the DisCos in 2024 while the Nigerian Electricity Regulatory Commission (NERC) had time after time revoked DisCos’ operational licences due to debts running into billions of naira.

    According to a NERC report, the total revenue collected by all DisCos in the third quarter of 2023 was N267.61 billion out of N349.55 billion billed to customers.

    Recall that over the years, the Federal Government, Asset Management Corporation of Nigeria (AMCON), and some banks took over some discos due to alleged poor performance and liquidity crisis.

  • AEDC signs deal to deliver uninterrupted power in Abuja

    AEDC signs deal to deliver uninterrupted power in Abuja

    Abuja Electricity Distribution Plc (AEDC) has signed a tripartite agreement with DAYSTAR Power Solutions Limited (DAYSTAR Power) and The Wood Factory Limited (Wood Factory) to provide its first grid-connected and solar hybrid power solution for commercial and industrial customers.

    This comes on the heels of the first interconnected mini-grid power solution for communities launched by AEDC and its strategic partners in Toto, Nasarawa State, in November 2023.    

    Read Also: NERC sacks KAEDC directors, dissolves board

    Under the agreement, AEDC will provide 18 hours of reliable electricity supply to Wood Factory (a top furniture manufacturer) while DAYSTAR Power will provide six hours of solar-powered electricity to Wood Factory, both leveraging interconnected power facilities to deliver seamless electricity supply and great value to the customer. This integrated power solution is expected to yield an estimated 44 per cent reduction in energy costs and an impressive 76 per cent annual decrease in carbon emissions for Wood Factory.

    Managing Director and Chief Executive Officer of AEDC, Christopher Ezeafulukwe, said: “We are excited about the great opportunities that the transformation and turnaround of AEDC is giving us to serve our customers, both new and existing, in more delightful ways. This project is a product of our consistent questioning of the status quo in the resilient push of our conviction and belief in using diversified energy sources to serve our customers better, while closing the supply gap in our market.”

  • AEDC to execute more interconnected mini-grid projects

    AEDC to execute more interconnected mini-grid projects

    The Abuja Electricity Distribution Company (AEDC) has revealed its plan to establish more interconnected mini – grid projects after the commissioning of the 352.24KWP Toto Interconnected mini – grid project in Nasarawa State.

    In his remarks at the commissioning ceremony, its Managing Director, Mr. Christopher Ezeafulukwe, said “So, AEDC will leverage this success to forge stronger partnerships and collaboration that would see us execute more of this type of projects.”

    The project which AEDC put in place in partnership with PowerGen

    with support from the United States Trade and Development Agency (USTDA) is connected to 2000 customers.

    Ezeafulukwe added that as AEDC has  seen the product of effective partnership amongst Government agencies and the private sector, more unwavering support should be given to many more projects that today will inspire.

    He described it as a robust self-sustaining electricity market in Nigeria, noting it is a must for sustainability in the electricity supply.

    According to him, the successful execution of this unique interconnected mini-grid project by AEDC in collaboration with PowerGen and REA is a testament to the renewed commitment to optimize renewable energy and off-grid opportunities to complement its grid capacity to ensure sustainable electricity supply to its  customers.

    He said the model will help deal with the challenges posed by the undeniable fact that macro-economic realities of today make it commercially unviable for Distribution Companies to serve some locations within their coverage areas under the current grid arrangement.

    The Managing Director said for

    AEDC, the timing of event could not have been more apt.

    He added that with the new leadership, which the firm now has  on board and the transformation journey it embarked upon approximately two months the  project will serve as an impetus to be more innovative in dealing with the myriad of issues facing Electricity Distribution Companies (DisCos) in Nigeria.

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    He described the project commissioning as a unique catalytic interconnected minigrid project; a project that was initiated in 2020 by AEDC to explore innovative ways to better serve the customers.

     The project, he said, was borne out of AEDC’s desire to provide more reliable electricity supply to underserved communities like Toto.

    The Managing Director said AEDC had received some support from the United States Trade and Development Agency (USTDA) to explore innovative business models that would see the company, amongst other things, augment grid supply with off-grid sources such as mini-grids.

    He stressed that “We were quite excited when our partnership with PowerGen provided us the prospect of validating the Rural Interconnected Mini-Grid business model that had been developed through the generous support from USTDA and Rocky Mountain Institute (RMI).”

    He said the  choice of Toto Community in Nasarawa State for the pilot project was not difficult for the firm and its partners to make, given the economic potentials of the Community, which had been underserved.

     Even at the conception stage, according to him, AEDC could envision the massive transformative impact a successful interconnected minigrid project would have on Toto.

    Continuing, he said, “Our interactions with Toto Community showed excitement and immeasurable joy on the part of the members of the Community by the reason of this project.

    ” The economic development of Toto has already begun. Greater access to reliable electricity has paved the way for new businesses to thrive, and existing ones to expand, creating job opportunities and boosting local income. About 2,000 connections are targeted under this project.

    “The socio-economic impact on the Community will be exponential in the months and years ahead.

    ” The realization of this requires collaboration on the part of the Community on one hand, and AEDC and PowerGen on the other hand. “Accordingly, I charge the leadership and members of Toto Community to ensure that actions that are inimical to the continued provision of electricity supply to their Community through this project, are completely prevented. “They include vandalizatlon, theft of energy and infrastructure equipment, non-payment of bills, hostility and other acts of sabotage.”

  • AEDC seeks collaborationto resolve power challenges

    AEDC seeks collaborationto resolve power challenges

    Managing Director, Abuja Electricity Distribution Company (AEDC), Mr. Christopher Ezeafulukwe has called for team work among operators of the various segments of the Nigerian Electricity Supply Industry (NESI) to resolve the challenges facing the sector.

    Speaking at the bi-annual joint generation, operations and DisCos planning meeting in Abuja, Ezeafulukwe said the sector could only grow when the various segments worked in unity.

    He noted that while there had been improvements since the power sector was partially privatised 10 years ago, a lot of work was still required to meet the objectives of the sector.

    He pointed out that the sector had been plagued by the issue of sustainability in policies and operations. He added that the biggest question confronting the players “today is how do we collectively ensure adequate and reliable supply of electricity to our valued customers even in the face of challenges?”

    He explained that to overcome the mistrust of the public in the sector players, operators need to work as a team across the value chain.

    “A team means a group of people who work together towards achieving a common purpose or goal. And our common goal is to ensure that we collectively and sustainably give electricity supply to the customers.

    “Incidentally, we are all customers. That is the funny thing about the product that we either produce or we transmit or we distribute. We are not in that kind of business where some people sell things that they don’t use. And so we need to work together as a team”.

    He urged participants to take a holistic view of the industry and come up with sustainable plans on how to improve the performance in the sector.

    While admitting that there were issues in the sector that need to be addressed, the AEDC boss stressed that these issues should be addressed with focus on the bigger picture.

    He said AEDC remains committed to delivering better services to its customers, saying “AEDC restrategising and refocusing on improving electricity supply to its customers”.   

    Read Also: AEDC to disconnect All Niger govt facilities from electricity

    Speaking to journalists on the sidelines of the meeting, the General Manager, Transmission Service Provider, Transmission Company of Nigeria, TCN, Engr. Ajiboye Oluwagbenga disclosed that transmission capacity has improved to 8,500 megawatts.

    He assured that TCN currently has the capacity to evacuate every quantum of electricity produced by power generation companies in the country. 

    “We have demonstrated in practical terms through simulations that TCN can conveniently wheel 8,500MW. But up till now, the power generation that is coming to the grid is always revolving around 4,000MW”. 

    Also speaking, Engr. Onyekachi Nwosu, Senior Manager, Plant Performance, Omotosho (Gas) Power Plant,  urged the government to tackle the issue of gas supply to the power plants.

    “There should be more investment in gas supply to guarantee supply to power generators. In our sector, 95 percent are thermal power plants, meaning they use gas. And the challenge has been getting adequate gas to power the plants.

    “The next challenge is the issue of the networks both at the transmission and distribution ends. The networks are fragile and that is the importance of this meeting.  We are here to plan and ensure that we manage what we have and to ensure that services to consumers are improved on”.

  • 4-year-old boy electrocuted in Niger

    A four-year-old boy, Arafat Jibrin has been electrocuted in Niger state when he strayed into an electric transformer house.

    The incident occurred on Thursday night at the Senior Quarters of the Federal Low-Cost Housing Estate in Maikunkele, a suburb of Minna.

    The Deceased was said to have been in a search of his sister who had gone to fetch water for the House when he strayed into the transformer house where he was electrocuted.

    An eyewitness said that it was a passerby who raised alarm when he noticed unusual activity in the transformer house but before the victim could be rescued, he had been burnt beyond recognition.

    Read Also: 446 Niger ians in UAE prisons, says ambassador

    The remains of the boy were taken from the transformer house and buried according to Islamic rite on Thursday night.

    The Public Relations Officer, of the Abuja Electricity Development Company (AEDC) Adamu Muhammad, confirmed the incident saying the Managing Director of AEDC had despatched a high powered delegation to pay a condolence visit to the family of the deceased.

    “We were in the residence of the family Friday morning to condole them and pray for the repose of the soul of the departed soul.”

  • Abuja Disco promises uninterrupted power supply in Niger

    The Abuja Electricity Distribution Company (AEDC) has pledged to supply 12 hours uninterrupted electricity to Minna and its environs.

    The action is part of agreement reached between the state government and the Abuja Electricity Distribution Company which took place at company’s Headquarters in Abuja.

    Speaking after the meeting, the Deputy Governor of Niger state and Chairman of the Committee on Constant and Quality electricity, Alhaji Ahmed Mohammed Ketso said he hoped AEDC will abide by the nine point agreements reached at the meeting.

    According to him, the 12 hours uninterrupted electricity would be for two months and would be reviewed afterwards.

    The Deputy Governor added that a special committee would be set up to monitor the implementation of the supply by the company.

    He then urged the youths in the state to remain patient with government’s effort to give them the best dividends of democracy.

    Ketso also said that the era of estimated billing would soon be over as pre-paid meters would soon be distributed to customers.

    The nine points agreements reached at the meeting include supply of 12 hours electricity, communicating and informing customers on bottlenecks faced by the company, enhanced relationship between the state government and the company among others.

  • AEDC declares state of emergency in Niger

    The Abuja Electricity Distribution Company (AEDC) has declared a state of emergency on electricity in Niger state.

    The Electricity Distribution Company said it would begin with Bosso local government area of Niger state.

    This is following the incessant fire accidents attributed to have been caused by electrical surge which have claimed the lives of many people in Bosso communities.

    The AEDC Regional Manager, Engineer Usman Musa Usman stated this during a public campaign on electrical safety in Bosso Local Government of Niger State.

    He said the declaration of state of emergency is to ensure the protection of the residents.

    “A state of emergency will be declared in Bosso Local Government Area. These surges, domestic accidents, electrical accidents that are happening is as a result of lack of protection.

    “We will go from house to house to ensure that there is adequate protection in each house. We will ensure that each house will have protection from electrical accidents.”

    This declaration is coming after a recent fire incident attributed to have been caused by electrical surge which resulted to death of a pregnant woman and her two children.

    Speaking on the incident, Usman said that  investigation was ongoing adding that at the end of the investigation, AEDC would be directed on what to do.

  • Niger: AEDC declares state of emergency in Bosso

    The Abuja Electricity Distribution Company ( AEDC) has declared a state of emergency on electricity in Bosso local government area of Niger state.

    This follows the incessant fire accidents caused by electrical surge which has claimed many lives in the communities.

    The AEDC Regional Manager, Engineer Usman Musa Usman stated this during a public campaign on electrical safety in Bosso local government of Niger state.

    He said the declaration of state of emergency is to ensure the protection of the residents.

    “A state of emergency will be declared in Bosso local government area. These surges, domestic accidents, electrical accidents that are happening is as a result of lack of protection.

    “We will go from house to house to ensure that there is adequate protection in each house. We will ensure that each house will have protection from electrical accidents.”

    This declaration is coming after a recent fire incident attributed to have been caused by electrical surge which resulted in death of a pregnant woman and her two children.

    Speaking on the incident, Usman said that investigation is ongoing adding that at the end of the investigation, AEDC will be directed on what to do.

    In his address, the representative of the Managing Director/Chief Executive, Abuja Electricity Distribution Company (AEDC) , Engineer Henry Egwu advocated for the safe use of electricity stressing that, “our product which is electricity is not meant to kill people but to satisfy people. ”

    He urged the people to ensure that they get good cables in wiring their houses stressing on them to practice the safety practices they have been taught.

    “We want you to use the electrical appliances in your homes in the safe and right way. Do not overload your sockets, do not buy fake cables,do not leave naked wires lying around.”

    ” Get competent and qualified people to do your electricals. Teach the younger ones the safe and right ways to operate electricals at home.”