The Nigerian Electricity Regulatory Commission (NERC) has approved the sub-concession agreement between the Kaduna Electricity Distribution Company (KAEDCO) and Konexa, an integrated energy distribution company registered as ECOF Kaduna Limited.
The agreement would enable Konexa to render electricity services in selected parts of Kaduna Electric’s franchise.
According to a statement, under the arrangement, Konexa is expected to make investments in network infrastructure that would guarantee 24 hours supply of electricity within the sub-concession area to all customers, from large commercial and industrial off takers to low demand residential customers.
“Konexa’s interventions will also see the roll out of new metering technology, the deployment of off-grid solutions such as mini grids and solar home systems to serve unconnected populations, and the installation of embedded generation capacity where required.
“Konexa’s integrated distribution model is based on partnerships with existing utilities, bringing cutting edge technologies like smart meters to bear, and delivering a robust customer value proposition for access to reliable power for all,” the statement signed by the Head of Corporate Communication of Kaduna Electric, Abdulazeez Abdullahi explained.
Furthermore, it revealed that the approval was contained in a letter sent to the Managing Director/CEO of Kaduna Electric by the Chairman, NERC, Prof. James Momoh, recently.
According to the statement, the sub-concession agreement shall be subject to all existing and other future regulations as may be determined by the regulator.
“Konexa shall operate under the electricity distribution license of KAEDCO as a sub-concessionaire. The rights and obligations of Konexa under the agreement shall be derived from the existing terms and conditions of license issued to KAEDCO,” the approval letter stated.
The Kaduna Electric spokesman stated that the partnership was aimed at accelerating much-needed improvements in service delivery.
He reiterated the commitment of the company to partner with like-minded organisations with the view to attracting investment into the Nigerian Electricity Supply Industry, so as to ensure quick resolution of the challenges bedeviling the sector.
On his part, the Chairman of Kaduna Electric, Yusuf Abubakar, was quoted to have stated: “This is a win-win partnership that will bring investment, improve quality of service, and ensure Konexa meets remittances obligations and rolls out much needed cost effective off-grid solutions.
“We have been working on this project together for almost two years now. Konexa and Kaduna Electric have jointly developed a vision and business model to serve all customer segments in the most cost-effective way.”
Also, The CEO of Konexa, Pradeep Pursnani said “This is a big milestone, and a first step of many for the distribution sector in Nigeria and for the Kaduna Electric and Konexa teams.
“We are grateful for the support from NERC, the Bureau of Public Enterprise and the Rural Electrification Agency and all other key stakeholders that have been part of the journey so far.
“This approval is a first of its kind, and we have been overwhelmed by the community support, the interest from businesses and households that want a more reliable and improved quality of service that both Konexa and Kaduna Electric are committed to delivering.”