ABUJA ELECTRICITY DISTRIBUTION PLC
Loma-Mansa Street, Off Ibrahim Babangida Way, Wuse Zone 4, P.M.B. 631, Garki – Abuja, Nigeria.
Abuja Electricity Distribution Plc, or Abuja Disco, serves central Nigeria from its base in Abuja, Nigeria’s capital city in the Federal Capital Territory (FCT). Abuja Disco was established in 1997 following the transfer of the capital from Lagos in 1991.
Abuja Disco franchise includes all the areas within the FCT, Niger, Kogi and Nassarawa states. Abuja Disco owns and maintains electrical installations and the distribution network within the zone, manages meter installations, servicing and billing, coordinates consumer credit services, and collects revenue.
Abuja Disco is one of 11 such distribution companies comprising the national distribution grid. The Transmission grid in turn, is managed by a separate company, the Transmission Company of Nigeria (TCN) Plc.
As at December 31, 2005. Abuja Disco ranked fourth among the 11 discos for both sales and electricity purchased/distributed. In 2002, Abuja Disco’s combined customer base, consisting primarily of residential and commercial users, ranked ninth among Nigeria’s discos, according to a due diligence study conducted by independent consultants.
The Shiroro Hydro Station, located approximately 245km from Abuja, is a major, seasonal supplier of Abuja Disco’s electricity over 330Kv lines. Despite past investment, the demand for electricity in the Abuja Disco service zone exceeds the supply. Increasing population and commercial activities continue to add to that demand.
In 1999, the FGN began an aggressive restructuring of the power sector with several aims, including introduction of efficient, private sector standards and management principles, and methodology, leading to reliable power.
In 2001, the FGN approved a National Electric Power Policy (NEPP), followed in 2005 by the Electric Power Sector Reform (EPSR) Act. EPSR Act provides the legal authority for the unbundling of Nigeria’s power utility as well as the establishment of an independent regulatory commission, the Nigerian Electricity Regulatory Commission (NERC), to guarantee open access and ensure efficiency throughout the industry. EPSRA also provides for a consumer assistance fund, development of a competitive market, and establishment of a Rural Electrification Agency and Fund (REA & REF) and the Nigeria Electricity Liability Management Company (NELMCO).
Abuja Distribution Company Plc was established as a public limited liability company on November 8th, 2005, with electricity distribution and marketing franchise in the Federal Capital Territory (FCT). Abuja Disco is managed by a Chief Executive Officer (CEO) and a Management Team who report directly to the CEO, Power Holding Company of Nigeria (PHCN) Plc, Abuja Disco’s parent company. In July 1, 2006, Abuja Disco became a standalone company as a next step toward privatization.
The core investor sale option was adopted by the Bureau of Public Enterprise in the privatization of the eleven Distribution companies in Nigeria which include Abuja Electricity Distribution Company.
In this model, the Federal Government retained 40% while the Successor Company (Kann Power) retained 60% in the franchise.
Credit: The Bureau of Public Enterprise.