AEDC Increases Power Supply by 15% and Reduces Losses to 32%

The Abuja Electricity Distribution Company (AEDC) has reported a significant 15 percent increase in its electricity intake and distribution over the last year, alongside a reduction in its Aggregate Technical, Commercial and Collection (ATC&C;) losses that have declined from approximately 42 percent to 32 percent.

During a press event in Abuja, AEDC's Managing Director, Chijioke Okwuokenye, presented the company's operational achievements and strategic plans aimed at stabilizing power supply within its service area, which encompasses the Federal Capital Territory (FCT) as well as Kogi, Niger, and Nasarawa states.

Okwuokenye noted that this rise in energy intake signifies substantial improvements in the supply provided to customers.

"We have recorded a 15 percent increase in power provision compared to the previous year, which for us is an indicator of progress. While challenges remain and not every area has access to consistent electricity due to several reasons which we will address later, it is clear we are making strides. The outlook is exceptionally positive," he remarked.

He acknowledged that although some communities continue to face outages, investments in bolstering the network, establishing new feeders, and injecting substations are gradually enhancing both reliability and quality of power in key locations. Customers in specific areas are anticipated to receive between 18 and 20 hours of electricity daily as additional projects are completed.

AEDC is also planning to forge a bilateral power supply agreement with the Nigerian National Petroleum Company Limited (NNPC) to tap electricity from its upcoming 350-megawatt facility currently being constructed in Gwagwalada. This plant is projected to become operational by the end of the first quarter of 2027, significantly enhancing electricity supply in Abuja and adjoining areas.

He further connected future reliability in power supply to the completion of the Ajaokuta–Kaduna–Kano gas pipeline, which aims to increase gas availability for power generation in northern Nigeria and lessen the dependency on more distant energy sources.

To address revenue losses and improve billing accuracy, AEDC has ramped up its metering initiatives through various programs, including the Meter Asset Fund (MAF) and the Distribution Sector Recovery Programme (DISREP). In the past 14 months, around 70,000 meters have been installed, transitioning customers from estimated readings to actual usage.

The company leader indicated that enhanced revenue collection has allowed AEDC to fulfill all market payment obligations and initiate the settlement of historical debts, marking a transition from a past of accumulating debts.

"Through the MAF scheme and considering the DISREP, we can confidently assert that between last year and the first two months of this year, we have deployed approximately 70,000 meters under these initiatives," he stated.

"Customers who were previously subjected to estimated billing are now receiving accurate bills, which boosts customer satisfaction, builds trust, and improves market liquidity. Achieving full metering for all our customers remains our primary goal," he added.

In addition to grid electricity, AEDC is also working on developing embedded generation projects to diversify its energy outputs. Plans are underway to establish three 10-megawatt solar power facilities near Lokoja, with the potential for further expansion as demand grows. This initiative aims to alleviate the effects of grid limitations in under-served areas.

The utility also shared that it is following a franchise model, permitting private investors to enhance infrastructure and manage specific sectors, in exchange for a portion of the generated revenue, particularly in areas that are difficult to serve in Kogi, Niger, and Nasarawa states.

Regarding tariffs, Okwuokenye emphasized that the focus is on delivering better value rather than raising costs, asserting that as supply increases and losses decrease, electricity prices would naturally fall. Ongoing discussions with the federal government aim to establish targeted subsidies for vulnerable consumers.

However, he pointed to persistent issues like electricity theft and vandalism, noting recent instances of illegal connections and meter tampering.

"We are collaborating closely with NNPC to ensure we harness that power and enhance service delivery. By this time next year, the current energy supply pressures, particularly during dry seasons, are expected to diminish considerably," he concluded.

Moreover, enhanced revenue collection has empowered AEDC to meet its market payment commitments and start addressing previous debts.