Power Struggles: AEDC Cites Debt and Infrastructure Overload for Load Rejection
The Abuja Electricity Distribution Company (AEDC) has identified mounting customer debts and overburdened infrastructure as key reasons behind electricity load rejection by distribution companies (DisCos), a challenge contributing to persistent power outages.
Chijioke Okuwuokenye, Acting Managing Director/CEO of AEDC, represented by Chief Operating Officer Olumide Jerome, addressed the issue during the fourth annual workshop of the Power Correspondent Association of Nigeria. Themed “Ending the Talk, Moving the Action,” the event focused on resolving issues plaguing Nigeria’s power sector.
Okuwuokenye revealed that in many communities, customers pay as little as N2,000 for electricity regardless of consumption, disrupting the financial flow of the power sector value chain.
“These debts originate from the value chain. If we don’t collect payments from our customers, we cannot meet our market obligations, leaving generation companies (GenCos) with payment deficits,” he stated.
He added, “Even if we provide 25 hours of power daily, some customers will still pay only N2,000, which doesn’t cover costs. As a private company, it doesn’t make financial sense to prioritize power supply in such areas.”
Overloaded Infrastructure
Infrastructure strain is another significant hurdle. Okuwuokenye noted that transformers initially designed for a few households now serve many more, leading to frequent breakdowns and load rejection.
“You have transformers originally installed for three houses now servicing 15 homes. This overload causes frequent breakdowns, forcing us to redirect loads to other feeders, which sometimes results in load rejection,” he explained.
Mounting Debts
He highlighted cases where communities with unpaid debts—some as high as N63 million—make small payments to offset their arrears. These partial contributions, however, fail to make a meaningful impact on reducing the deficit.
AEDC’s Efforts to Improve Services
Despite these challenges, AEDC has made progress in enhancing customer satisfaction. Okuwuokenye announced that the company installed 70,000 prepaid meters across its franchise area in 2024, improving billing transparency and reducing billing disputes.
The discourse underscores the need for collective action to address Nigeria’s electricity woes, including improved payment compliance, infrastructure upgrades, and sustained policy implementation.
