This requirement makes the firm to top the list of the 11 distribution firms’ investment.
The distribution firms had a deal with the government through the regulator, the Nigerian Electricity Regulatory Commission (NERC), to invest combined $1.8 billion in five years – last year and 2017 – as capital expenditure (CAPEX) to improve supply.
Part of the investment will be used on repairs and replacement of obsolete facilities.
A document made available to The Nation showed that Ikeja makes the highest investment, followed by Eko and Ibadan Electricity Distribution companies with yearly investment of $45.17 million and $43.865 million.
Yola DISCO came last on the list with $13.133 million.
Other DSICOs’capital expenditures are Abuja Electricity Distribution Company, $36.606 million; Kano DISCO, $30.379 million; Kaduna DISCO, $29.96 million; Enugu DSICO $27.23 million; Port Harcourt DISCO, $25.514 million; Benin DISCO $24.314 million; and Jos DISCO, $22.755 million.
Investors in the distribution firms agreed with NERC as the investment continues; the regulator will implement cost-reflective tariff to enable them to recoup.
A Director in the West Power and Gas Limited, the new owners of Eko Electricity Distribution Company (EKEDC), Dr Tunji Olowolafe, said the firm plans a princely N42 billion investment in the next five years to strengthen its network and reinforce electricity supply; this is far more than the amount it agreed with the government.
The Chief Executive Officer of the company, Oladele Amoda, said the management was exploring other options of getting power other than that the one from the natioanal grid, following continual gas pipeline vandalism.
“We are looking beyond normal supply through the national grid and discussing deals with private power generating firms,” he said adding that such private generation is called embedded generation.
Owners of other DSICOs also have different plans. The Sahara Group, which owns the Ikeja DISCO, have taken inventory of what should be done to improve power supply in the short term and in the long term.
Its Chairman, Mr. Kola Adeshina said until the processes were concluded, it would be difficult to determine how much investment the new owners would make to enable them to achieve their objectives.
– The Nation