KANO ELECTRICITY DISTRIBUTION COMPANY PLC
Zonal Headquarters, No. 1, Niger Street, Kano, Nigeria.
Kano Electricity Distribution PLC, or Kano Disco, located in the North Western Zone of Nigeria, has a franchise for electricity distribution and marketing in Kano, Katsina and Jigawa States. The Company owns and maintains electrical installations and the distribution network within its franchise zone, manages meter installations and servicing, billing, coordinates consumer credit services and collects revenue.
Kano Disco is one of 11 such distribution companies comprising a national distribution grid. The transmission grid, in turn, is managed by a separate company, the Transmission Company of Nigeria (TCN) Plc.
Kano Distribution Company Plc was established as a public limited liability company on November 7th 2005. Kano Disco is currently a Distribution Business Unit of the Power Holding Company of Nigeria (PHCN), managed by a Chief Executive Officer (CEO) supported by a Management Team. The CEO reports directly to the CEO, PHCN. In July 1, 2006, Kano Disco became a standalone company as a next step toward privatization.
In 1999, 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 priced by the market.
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 Kano 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.