KADUNA ELECTRICITY DISTRIBUTION PLC
Nagwamatse House, Ahmadu Bello Way, P.M.B. 2268, Kaduna State, Nigeria.
Kaduna Electricity Distribution Plc, or Kaduna Disco, located in North Central region of Nigeria, has a franchise for distribution and marketing of electricity in the Kaduna Zone, which includes Kaduna, Kebbi, Bauchi, Sokoto and Gombe states. The company owns and maintains the distribution network and support equipment within the zone, manages meter installations and servicing, billing, coordinates consumer credit services, and collects revenue.
In 2006, all the districts recorded improved collections largely in response to improved metering/billing efficiencies. With improved tariff, additional distribution capacity and improved collections, Kaduna Disco projects a doubling of revenue in the next four-to-five years.
Kaduna 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.
Kaduna Distribution Company Plc was established as a public limited liability company on November 7th, 2005. Kaduna Disco is managed by Chief Executive Officer (CEO) and a management Team who reports directly to the CEO, Power Holding Company of Nigeria (PHCN) Plc, Kaduna Disco’s parent company. By July 1, 2006, Kaduna Disco became a standalone company with the transfer of assets and liabilities to it.
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 Kaduna 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.