Abuja Electricity Distribution Company (AEDC) says it plans to invest N31.3 billion to boost electricity supply in Federal Capital Territory (FCT) Abuja.
Mr Ernest Mupwaya. AEDC Managing Director said this at a media interactive forum on proposed tariff review in Abuja on Tuesday.
Mupwaya said that AEDC would invest N31.3 billion in FCT, N2.3 billion in Kogi, N2.3 billion in Nassarawa and N5.5 billion in Niger.
He said the company intended to invest the money to improve electricity supply in its franchise area adding that to earn more, AEDC needed to improve its services.
According to him, AEDC requires N43 .02 billion of investment to be able to migrate to a level where customers will be satisfied.
“For us to give very high reliability, we need at least N43 .02 billion of investment to be able to migrate to a level where customers will be satisfied.
“A total of 92 projects (Technical and Non-Technical) to add 89MW, improve network visibility and flexibility capacity at a total cost of N43.02 billion is required,” he said.
Giving the breakdown of select planned investments in the network per state, he said Abuja required N31.3 billion investment, Kogi N2.3 billion, Nasarawa N2.3 billion and Niger N5.5billion.
“The provision of electricity 24 hours is not entirely in the AEDC domain because we are a distribution company; it is in the domain of the entire industry.
“But this tariff review will improve the entire supply chain so that every company can do what it takes to migrate toward 24 hours.
“Nigerians will be averagely paying 35 per cent in the new electricity tariff review, effective from April 1.
Mupwaya said the review by the regulator was to ensure that DisCos earned sufficient revenue for their operations and meet approved expenditure to meet market obligations.
He said there had been an imbalance over the years when there was a movement in foreign exchange rate noting that there would be an adjustment in tariff and if there was inflation, it would be adjusted.
He added that the minor review was important for DiScos to sustain the electricity industry.
“To improve the collection, you need investment and to get investment, you need a decent tariff which will demonstrate that when you get that investment, you will be able to pay back, you need huge investment.
“Without a decent tariff, you cannot improve the service and meters which are very key to improving the collection
“To win the confidence of customers that are paying for what they consume tariff is very important to unlock the needed resources to transform the sector,’’ he said.
He said under the Meter Asset Programme (MAP) AEDC had metered 81,533 customers, making them the number one DisCo in the country.
He, however, said that the import duty of 45 per cent could be looked into so that the country could be flooded with metres.
News Agency of Nigeria (NAN) reports that the Nigerian Electricity Regulatory Commission (NERC) approved a new electricity tariff to be charged by the 11 Electricity Distribution Companies (DisCos) in the country with effect from April. The last review was done in 2015.
Under the new tariff regime, residential customers of the Abuja Electricity Distribution Company (AEDC) that were paying N27.20 per unit would pay N47.09.