IKEJA ELECTRICITY DISTRIBUTION COMPANY PLC
Secretariat Road, Alausa, Ikeja, Lagos State, Nigeria.
Ikeja Electricity Distribution Plc, or Ikeja Disco, located in Lagos has a franchise for distribution and marketing electrical service in the Ikeja Zone which includes parts within the Lagos State south zone. The Ikeja Disco service area includes Ikeja industrial estate; and also predominantly residential consumers near Lagos, Nigeria’s leading commercial center. Within the Zone, Ikeja Disco owns and maintains a distribution network and supporting equipment, manages meter installations, servicing and billing, and coordinates consumer credit services.
Ikeja Disco is one of 11 such distribution companies comprising a national distribution grid. Power is wheeled through Transmission Company of Nigeria (TCN) Plc.
Ikeja Distribution Company Plc was established as a public limited liability company on November 7th, 2005. Ikeja 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), Ikeja Disco’s parent company. By July 1, 2006, Ikeja Disco became an autonomous company as one of the key requirement of privatization.
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).
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 Ikeja 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.