Eko Electricity Distribution Company (EKEDC) has lamented that its Aggregated Technical, Commercial, and Collection losses (ATC&C) were at their lowest point in the company’s history.
Electricity lost via the distribution system as a result of outdated or ineffective power cables and equipment is referred to as “technical” losses. This energy never makes it to the consumers. “Commercial” losses occur when consumers steal power, such as by fiddling with their meters to make it look as though they are consuming less than they actually are. In essence, this is theft of electricity.
Disclosing this in a letter addressed to the chairman of the company, the acting managing director and chief executive officer of the company, Rekhiat Momoh, said the impressive performance showed that EKEDC’s ATC&C reduced to 10.51% in March 2024 from 30.87% recorded in the previous month of February.
According to the managing director, “This monumental achievement is not just about numbers. It symbolizes our team’s readiness and resolve to ensure improved performance. Looking ahead, we are using this momentum to propel us further. We will continue to challenge ourselves, push boundaries, and strive for greater heights.”
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Commending the feat, an energy expert, Emmanuel Okoh said the achievement was as a result of good leadership of Momoh, acting managing director of the company after the removal of Tinuade Sanda, the immediate past managing director. He said the month of March was a historic for EKEDC as the company billed an impressive 15.8billion and achieved a collection of N15.7billiion, which represents a collection efficiency of 99%.
He said while this has shown collaborative spirit and dedication to excellence in the team’s collective resolve and commitment to excellence, it also symbolizes readiness to ensure improved performance.
He said, “Collection” losses occur when the DISCO is unable to fully collect payment from customers for the electricity they have used. Customers may not pay their bills for various reasons. Reducing these ATC&C losses is crucial for DISCOs to become more financially viable and provide reliable, affordable electricity to customers. Industry experts estimate that ATC&C losses in Nigeria range from 29-59% – much higher than the 10% seen in developed countries.
“To address this, DISCOs are trying strategies like installing smart meters to better monitor usage and prevent theft. They are also working to improve billing and collection processes. Ultimately, tackling ATC&C losses is key to improving the overall performance and sustainability of Nigeria’s power sector.”
