‘Kano electricity coy operating at a loss’

The Managing Director of Kano Electricity Distribution Company (KEDCO), Alhaji Jamilu Isyaku Gwamna, says the company had been operating at a loss since it commenced operation about a year ago. Speaking with journalists yesterday, Gwanma said while the company was generating between N1.2 and N1.3 billion revenue monthly, it was buying electricity worth N2.2 billion […]

The Managing Director of Kano Electricity Distribution Company (KEDCO), Alhaji Jamilu Isyaku Gwamna, says the company had been operating at a loss since it commenced operation about a year ago.
Speaking with journalists yesterday, Gwanma said while the company was generating between N1.2 and N1.3 billion revenue monthly, it was buying electricity worth N2.2 billion and N2.5 billion for onward distribution to customers.
He regretted that despite the huge investment, less than 13,000 electricity consumers in the zone pay up to 70 per cent of what they consume while over 200, 000 consume the power free of charge. He said: “We are also paying N400 million as salaries to our workers monthly while running expenditure stands at over N100 million. To be honest with you, we have never generated profit since we took over the company from the PHCN.” The managing director added that of the 63, 000 meters the company inherited, only 20, 000 meters generate 30 per cent of the expected revenue.  He added that the company’s data base is totally messed up.
“The number of consumers on our network is huge but the revenue is very little. At the time we took over, our data base was 286,000 for Kano, Jigawa and Katsina, but now it has increased to 370,000, yet we are not generating the expected revenue. Because of this and other challenges, KEDCO is investing one million dollars on its network every month. Our major problem at the moment centres on collection and unless we improve on that, the company cannot continue,” he said.