Eko Electrical energy Distribution Firm (EKEDC) has introduced a significant restructuring of its operations with the creation of a brand new subsidiary, Excel Electrical energy Distribution Firm Restricted, which can completely deal with energy distribution throughout Lagos State.
In an announcement issued on Tuesday, the Normal Supervisor, Company Affairs, Mr. Babatunde Lasaki, mentioned the institution of the brand new subsidiary was in full compliance with the provisions of the Electrical energy Act 2023 and directives from the Lagos State Electrical energy Regulatory Fee (LASERC).
In keeping with Lasaki, LASERC had directed that Eko DisCo, which at present operates throughout each Lagos and Ogun States, set up a separate entity to handle its Lagos operations below a twin regulatory framework involving each LASERC and the Nigerian Electrical energy Regulatory Fee (NERC).
“Accordingly, EKEDC has included Excel Electrical energy Distribution Restricted to handle its Lagos operations below the regulatory oversight of each LASERC and the Nigerian Electrical energy Regulatory Fee (NERC),” EKEDC mentioned.
Eko DisCo not bought, firm clarifies
He clarified that Eko Electrical energy Distribution Firm Plc stays a legally acknowledged entity and has not been bought, transferred, or dissolved. The corporate, he mentioned, stays owned by West Energy and Fuel Restricted (WPG) with 60 % shareholding, whereas the Bureau of Public Enterprises (BPE) holds the remaining 40 % on behalf of the Federal Authorities.
“Excel Electrical energy Distribution Restricted is a 100 per cent subsidiary of EKEDC and can now carry out all distribution-related actions beforehand dealt with by EKEDC in Lagos State,” it added.
It mentioned that every one current customer service personnel would stay the identical whereas billing and fee processes stay unchanged for now.
“The one noticeable change would be the transition in branding from Eko DisCo to Excel DisCo,” the corporate acknowledged.
The corporate suggested prospects and stakeholders to proceed contacting their standard service representatives for all inquiries and assist throughout this transition.
As a part of the restructuring, Eko Electrical energy Distribution Firm Plc has transitioned right into a holding firm.
This alteration, made in compliance with regulatory directives, won’t disrupt service supply or operational effectivity in Lagos.
The administration reiterated its dedication to sustaining excessive requirements of company governance and regulatory compliance.
It additionally reaffirmed its dedication to delivering dependable, environment friendly, and sustainable electrical energy provide to all prospects by means of its newly licensed subsidiary, Excel DisCo.
“This improvement is only a regulatory and structural transition, not a takeover or divestment,” the corporate confused.
“This clarification is important to make sure public understanding and transparency relating to vital developments in Nigeria’s electrical energy sector.”
What you need to know
In June 2023, President Bola Tinubu signed the Electrical energy Act 2023 into legislation, repealing the Electrical Energy Sector Reform Act, 2005.
This Act decentralizes the facility sector, giving states authority to control electrical energy inside their territories.
Twenty-three states have already handed enabling legal guidelines to ascertain their electrical energy markets.
Fourteen states now have formal NERC transfers of regulatory oversight.
In January, the Chairman of Transgrid Enerco Restricted, Engineer Olubunmi Peters, confirmed the deliberate acquisition of West Energy & Fuel Restricted’s 60% fairness stake in Eko Electrical energy Distribution Firm.
He confirmed the event throughout the signing of the Share Buy Settlement (SPA) between Transgrid Enerco Restricted and West Energy & Fuel Restricted, the mother or father firm of Eko DisCo.
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