IBADAN ELECTRICITY DISTRIBUTION
Capital Building, Ring Road, Molete, Ibadan, Oyo State, Nigeria.
Ibadan Electricity Distribution Plc, or Ibadan Disco, serves a significant industrial customer base in Osun, Ogun, Kwara and Oyo States. Ibadan Disco is one of 11 such distribution companies comprising a national distribution grid. The grid, in turn, is managed by a separate company, the Transmission Company of Nigeria (TCN) Plc.
Ibadan Distribution Company Plc was established as a public limited liability company on November 7th 2005, with electricity distribution and marketing franchise covering Borno, Taraba and Yobe State. Ibadan Disco is managed by a Chief Executive Officer (CEO) and a Management Team who reports directly to the CEO, Power Holding Company of Nigeria (PHCN) Plc, Ibadan Disco’s parent company. By July 1, 2006, Ibadan Disco became a standalone company with the transfer of assets and liabilities to it.
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).
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 Ibadan Electricity Distribution Company. In this model, the Federal Government retained 40% while the Successor Company retained 60% in the franchise.
Credit: The Bureau of Public Enterprise.