The Kaduna Electric Distribution Company (KAEDCO) says there is an ongoing engagement with relevant agencies to address the long-running and current issues in the organisation.
The Nigerian Electricity Regulatory Commission (NERC) had notified the DisCo that it would “cancel its licence” after 60 days, if the utility fails to clear a N51.93 billion debt.
Cumulatively, the commission said the utility accrued a debt of N93.41 billion from 2015 to 2022 due the Nigerian Bulk Electricity Trading Plc (NBET) and the market operator (MO).
Responding to the notice in a statement on Tuesday, the DisCo said it acknowledges the 60-day notice of intention by the NERC to revoke its electricity distribution licence.
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“The notice, in line with the regulatory power of the commission, is coming on the heels of an initial engagement between the commission and shareholders/lenders to Kaduna electric-in-receivership in sustaining the mutual objectives of the federal government for an intervention in a number of electricity distribution companies including Kaduna Electric for a turnaround of the DisCos and sale of core interests to new investors,” the statement reads.
“While the board and management have continued to work on the intervention objectives, challenges remain, and stakeholders continue to engage on addressing them.
“We assure our customers of ongoing engagements between the commission and shareholders including the Bureau of Public Enterprises and lenders as to address the long-running and current issues at Kaduna Electric.
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The DisCo said it will continue to provide electricity in its franchise area — Kaduna, Kebbi, Sokoto and Zamfara States —with the “utmost sense of duty and professionalism”.
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