The Abuja Electricity Distribution Companies (AEDC) has began the implementation of its N75 billion five years Performance Improvement Plan (PIP).
According to the company’s Head, Corporate Communications, Mr. Oyebode Fadipe, the firm plan is to spend an average of N15 billion per annum.
He revealed that for the first year, the AEDC will spend N17billion as follows: N5.9 billion on customers’ meters and N11.9 billion on equipment.
Fadipe said: “We have commenced. There are preliminary things to be done and one of them is to engage in procurement process which we have started.
“The PIP is a five year plan. It is expected to take off at N75 billion. So, it is almost about N15 billion per year. We are doing N17billion for the first year. Of that amount, N5.9 billion is going for customers’ meters. N11.5 billion is going for various plants equipment and systems”.
He explained that essentially, the plan is a strategic plan to transform the business for a period of five years.
Asked how it is tied to tariff rate or has it resulted in tariff adjustment, he said: “To the best of my knowledge, there is no issue of tariff adjustment irrespective of the plan.
“That is not the issue now. The issue is this, it is a five year plan. For year one, this is the amount we are spending and we are spending.
“The whole essence of it is to improve the quality and level of service to bring about operational efficiency, minimize losses at downtime. This one should result in increased of supply to customers”.
He noted that the company will spend whatever it generates from tariff paid by customers to fund the plan.
He said “it is what we recover or generate we will use in funding it. We don’t expect money to be coming from any other place”.
According to him, the AEDC is still facing challenges of load shedding from its fluctuating load allocation.
Fadipe said: “Load shedding is still there. That challenge is still there. Allocation fluctuates.
“At times we get 400Mw. But as from around 12:00 midnight, when demand would have dropped, there is improved supply but customers are not comfortable that that is the time of the day that you have more supply.
“But as the day progresses, it starts coming to 300Mw to 280Mw. It is still dependent on what is available in the grid”.