KEDCO to TCN: Pay Us Our N3.2 billion  

By Nseobong Okon-Ekong

The Kano Electricity Distribution Company (KEDCO) has requested the Transmission Company of Nigeria (TCN) to honour a monetary obligation which was an integral part of a judgement delivered by the Nigerian Electricity Regulatory Commission (NERC), in a dispute between KEDCO and TCN.

In view of certain rules and regulation governing the Power Regulation Commission and according to law, TCN is supposed to supply power to KEDCO at 8% as approved by  MYTO allocation but that was not achieved, as maximum of only 5% to 6% was received from the grid, where the shortfall constituted part of KEDCO’s revenue requirement as an entity.

A statement by Ibrahim Sani Shawai,

The N3.2 billion comprises of an imbalance of N2, 390, 310,793.83 billion between January 2015 and June 2015, while cost of wrong meter reading is put at N858 million. The processes that culminated to the verdict actually started in 2014. “This has been a long battle and victory given but yet to be enjoyed by KEDCO and it is said that justice delayed is justice denied,” Shawai said.

The KEDCO management further said that N3.2 billion would have yielded good interests since 2016 if it had been given to KEDCO for its investment in the power distribution franchise.

“This is a judgement that for more than three years is yet to be obeyed. If the market in the power sector is rule-governed, there should be no reason for TCN not to obey the judgement even when they are so quick to issue suspension to KEDCO because it is within their purview to do so. This is an abuse of power and an attempt to bully KEDCO. The failure to obey the judgement by TCN which is yet to pay KEDCO the sum of N3.2b for the mistakes made by TCN will either mean that the mistake by TCN in providing a shortfall of 5% to 6% power supply from the grid and using 8% as a revenue requirement from KEDCO was deliberate or that there is more to it than meets the eye for them to persistently continue to choose not to obey yet forcing KEDCO to obey 100 per cent payment.”

KEDCO management also used the opportunity to respond to the allegation by the Independent System Operation that KEDCO reduced electricity supply to customers by closing many feeders, listing the Daura Feeder is not true. According to Shawai, “Power outages affecting Katsina and Daura are as a result of multiple faults on both the Kano and Katsina 132KV lines and the 150MVA T4A power transformer respectively. These faults occur concurrently affecting normal flow of power supply to the affected customers which we have cleared the air on but the persistent alarm through sustained publicity on the issue, speaks more of politics than business. This is not deliberate and the undue politicisation of such issue can only show how desperate TCN is to take the reputation of KEDCO to the mud. This is business and not politics and the balance must be kept in that regard.”

“On the other hand, the disconnection of Zaria and Club road 33KV feeders by TCN is a deliberate move to hurt our esteemed customers and not KEDCO head office as claimed by TCN. These two feeders before now are serving 14 no 11KV feeders across our network. As a customer centric company, KEDCO had to devise a means of serving these customers through other routes. This alternative measures has affected the normal flow of power supply and the resultant rationing of supply by our system operations unit; yet we are being questioned by TCN on why we are rationing and not supplying power but the question for them is that when the disconnected feeders were intact and functioning, did anyone make such complaint? No. So if the issue raised only came up when TCN disconnected the feeders, then I think TCN should not complain about the problems they triggered.”

Justifying its urgent call for payment of the TCN debt, KEDCO management claimed its business was being squeezed to death by huge debts. “We are venture that is primarily concerned with customers’ satisfaction and as well as the satisfaction of other stakeholders but in a situation whereby KEDCO is working hard to meet up on all these commitments, KEDCO should not be trodden upon and left to bleed with the over N10 billion uncollected bills from its customers from January to July this year and the N3.2 bliion which TCN is refusing to pay; KEDCO is out of patience and needs this money to give our customers more packages of satisfaction.”