Kaduna Electric and integrated utility company Konexa obtain green light to make investments in Kaduna that will enable 24/7 power for all.
The Nigerian Electricity Regulatory Commission (NERC) has approved the sub-concession agreement between Kaduna Electricity Distribution Company (KAEDCO) and Konexa, an integrated energy distribution company registered as ECOF Kaduna Ltd. The agreement will enable Konexa to render electricity services in selected parts of Kaduna Electric’s franchise.
Under the approved arrangement, Konexa is expected to make investments in network infrastructure that will guarantee 24/7 supply of electricity within the sub-concession area to all customers, from large commercial and industrial off takers to low demand residential customers.
Konexa’s interventions will also see the roll out of new metering technology, the deployment of off-grid solutions such as mini grids and solar home systems to serve unconnected populations, and the installation of embedded generation capacity where required.
Konexa’s integrated distribution model is based on partnerships with existing utilities, bringing cutting edge technologies like smart meters to bear, and delivering a robust customer value proposition for access to reliable power for all.
A statement signed by the Head of Corporate Communication of Kaduna Electric, Abdulazeez Abdullahi, said the approval was contained in a letter sent to the Managing Director/CEO of Kaduna Electric by the Chairman, Nigerian Electricity Regulatory Commission, Prof. James Momoh on Wednesday.
According to the statement, the sub-concession agreement shall be subject to all existing and other future regulations as may be determined by the regulator. “ECOF Kaduna Ltd. [Konexa] shall operate under the electricity distribution license of Kaduna Electricity Distribution Company Plc (KAEDCO) as a sub-concessionaire. The rights and obligations of ECOF Kaduna Ltd [Konexa] under the agreement shall be derived from the existing terms and conditions of license issued to Kaduna Electricity Distribution Company PLC (KAEDCO)’’, the approval letter stated.
The Chairman of Kaduna Electric, Yusuf Abubakar stated “This is a win-win partnership that will bring investment, improve quality of service, and ensure Konexa meets remittances obligations and rolls out much needed cost effective off-grid solutions. We have been working on this project together for almost two years now.
Konexa will bring investment and expertise that leverages our experience to deliver power to everyone in the sub-concession area without exception. Konexa’s technical teams have been on the ground for 18 months and they also have been working with the customers and communities from who they have full support.”
The CEO of Konexa, Pradeep Pursnani said “This is a big milestone, and a first step of many for the distribution sector in Nigeria and fore Kaduna Electric and Konexa teams. We are grateful for the support rom NERC, the Bureau of Public Enterprise and the Electrification Agency and all other key stakeholders that have been part of the journey so far.