Categories: BusinessNews

AEDC cuts power losses by 10% in one year

The Abuja Electricity Distribution Company (AEDC) says it has reduced its aggregate technical, commercial and collection losses from about 42 per cent to 32 per cent within one year as part of efforts to improve power supply.

The company also intensified metering, network upgrades and embedded generation projects across its franchise area.

Managing Director, Chijioke Okwuokenye, disclosed this on Thursday in Abuja during a media briefing where he outlined the firm’s operational progress and long-term strategy to stabilise electricity supply.

Okwuokenye said AEDC increased its energy intake by nearly 15 per cent in the past year, describing the growth as a key indicator of improved electricity availability to customers.

He noted that although outages persist in some communities, ongoing network expansion and new power sources are expected to gradually address the gaps.

According to him, a 350-megawatt generation plant being developed by the Nigerian National Petroleum Company Limited in Gwagwalada would significantly boost supply in Abuja and surrounding areas.

He added that the completion of the Ajaokuta–Kaduna–Kano gas pipeline would improve gas availability for power plants in the northern corridor and reduce reliance on distant grid supply.

Okwuokenye revealed that about 70,000 meters had been deployed in the last 14 months under initiatives such as the Meter Asset Fund and the Distribution Sector Recovery Programme, aimed at ending estimated billing and improving transparency.

He said improved revenue collection had enabled AEDC to meet its market payment obligations and begin settling legacy debts, noting that consistent payments across the value chain would support further investment in power generation and transmission.

The company also announced plans to deploy embedded solar generation in underserved areas, including the development of three 10-megawatt solar plants around Lokoja, with capacity expected to expand as demand grows.

Okwuokenye said AEDC was adopting a franchise model to attract private investment into difficult-to-serve locations, particularly in Kogi, Niger and Nasarawa states.

On tariffs, he said the company was focused on improving value rather than increasing prices, expressing optimism that electricity costs would decline as supply improves and losses fall.

He attributed part of the sector’s challenges to power theft and vandalism, citing recent cases of energy diversion by customers, and called on Nigerians to support efforts to curb the practice.

The AEDC boss added that discussions were ongoing with the Federal Government on targeted electricity subsidies to protect vulnerable consumers.

Nigeria’s distribution companies have long struggled with liquidity challenges linked to high losses, low metering penetration and weak revenue collection. Industry experts say improved metering, cost-reflective tariffs and sustained private sector investment remain critical to achieving reliable electricity supply.

AEDC, which serves the Federal Capital Territory as well as Kogi, Niger and Nasarawa states, remains a key player in ongoing reforms aimed at expanding energy access, strengthening grid reliability and supporting economic growth.

LUKMAN ABDULMALIK

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