NERC gives Kaduna DisCo one year to cut losses, fix metering

The Nigerian Electricity Regulatory Commission (NERC) has mandated the newly appointed interim board of Kaduna Electricity Distribution Plc (Kaduna DisCo) to implement a comprehensive overhaul of the utility within one year. The directive targets immediate improvements in reducing high technical and commercial losses and closing a significant metering gap, identified as critical priorities.

This intervention comes as NERC escalates its oversight of Kaduna DisCo, citing persistent failures to meet market obligations and prescribed performance benchmarks. NERC Chairman Musiliu Oseni charged the Interim Board of Special Directors and the Interim Administrator to reset the company and guide it toward a sustainable growth trajectory. Oseni emphasized the expectation for measurable improvements to begin immediately, recalling a previous successful intervention in 2024 that boosted performance before former investors regained control.

“

The Nigerian Electricity Regulatory Commission has tasked the newly constituted Interim Board of Special Directors of Kaduna Electricity Distribution Plc with implementing immediate interventions to reset the utility company and restore it to a sustainable growth trajectory within 12 months.

The commission highlighted the DisCo's substantial Aggregate Technical, Commercial, and Collection (ATCC) losses and a considerable metering deficit as major challenges requiring urgent attention. The Bureau of Public Enterprises (BPE) also urged the new management to leverage existing metering programs to address the deficit across Kaduna DisCo's franchise area, stressing their importance for improving accountability and revenue collection.

NERC's Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye, noted that the special board members were chosen for their professional expertise and relevant skills needed for the turnaround. The five-member board, chaired by Abdullahi Garba, has pledged to collaborate closely with NERC and BPE to achieve the set targets, aiming to enhance the financial sustainability and reliability of electricity supply within the region.

“

We expect a lot from you, and the Administrator will bring you up to speed to ensure that you meet the target within one year. Most importantly, we want to begin to see progress immediately.