The Nigerian Electricity Regulatory Commission has approved a N100bn investment fund for infrastructure upgrade across Abuja Electricity Distribution Company network within a period of five years.
The Commission in its Performance Improvement Plan and Extraordinary Tariff Review, stated that the approved PIP and Capital Expenditure program would take effect from July 1, 2021, to June 30, 2026.
The documents jointly signed by the Chairman of the Commission, Sanusi Garba and Dafe Akpeneye, Commissioner, legal, licensing and compliance, stated that AEDC is expected to make an annual investment of N20,144,000,000 from 2021 to 2025.
“The AEDC will be expected to provide an annual update to the PIP to reflect the proposed investment program as part of the minor review of tariffs on a continuous basis,” it stated.
AEDC which operates across four states, including Kogi, Abuja, Nasarawa and Niger state has planned to make additional investment to upgrade 2,239 km of lines, 188 number of distribution transformers and 27 substation transformers to reduce losses.
It said the purpose was to boost power supply and distribution by the electricity distribution companies to their customers.
The commission said that the AEDC’s approved capital expenditure is N15.197 bn annually from 2021 to 2025, which translates to a total sum of N75.98bn.
Items under the total capital expenditure program include; construction of 33kV feeder, rehabilitation of 33kV feeder, construction of 11kV feeder, distribution of transformers among others.
“The Commission, having considered AEDC’s PIP and Extraordinary tariff review application in line with the provision of EPSRA and relevant regulations, approved the PIP and CAPEX program over the next 5 years.
“AEDC’s PIP and extraordinary tariff application was exposed to a public hearing and consultation presided over by a panel of three commissioners in line with the business rules of the commission,” it stated.