Reps Chide AEDC Over ‘Discriminatory’ Power Distribution Formula

House of Representatives, has slammed the Abuja Electricity Distribution Company (AEDC) over what it described as a discriminatory electricity distribution policy.

The House ad-hoc committee investigating power sector reforms and expenditures from 2006 to 2024 stated this during an oversight visit to AEDC corporate headquarters in Abuja.

The committee expressed concern over claims that the company allocates approximately 80 per cent of its electricity supply to the Federal Capital Territory (FCT), while the remaining 20 per cent is shared among Kogi, Niger and Nasarawa states within its franchise area.

Members of the panel described the alleged 80–20 distribution model as unfair and economically damaging to the affected states, noting that citizens and businesses in Kogi, Niger and Nasarawa have consistently complained of prolonged outages, low supply and poor service delivery.

Chairman of the committee, Hon. Al-Mustapha Ibrahim emphasised that every state within a distribution company’s coverage area deserves equitable treatment.

He noted that electricity supply should not be determined solely by revenue considerations, especially in a sector which had benefitted from substantial public funding and federal intervention.

Responding to the lawmakers’ concerns, the managing director of AEDC, Chijioke Okwuokenye, denied any deliberate discriminatory intent but acknowledged disparities in supply.

He attributed the distribution pattern to operational and commercial realities, including high levels of energy theft in some states, weak infrastructure and network limitations, low revenue recovery rates and mounting debts owed by customers.

According to Okwuokenye, the Federal Capital Territory remains the company’s largest and most viable revenue base, which significantly influences allocation decisions.

He further explained that the company is working to improve infrastructure and reduce losses in underserved areas but noted that sustainable improvements require cooperation from host communities, state governments and consumers.

Members of the committee, Hon. Danladi Suleiman and Hon. Ginger Obinna raised concerns over persistent complaints from constituents regarding arbitrary billing and slow rollout of prepaid meters.

In response, the AEDC boss disclosed that the company had so far distributed over 300,000 prepaid meters across its coverage area.

He added that estimated billing has been significantly reduced and that AEDC now operates a capping system in line with regulatory directives to prevent overbilling of unmetered customers.

However, some lawmakers maintained that complaints from consumers suggest that the problem has not been fully resolved.

The committee also queried AEDC over loans and intervention funds reportedly obtained from the Federal Government following the privatisation of the power sector 13 years ago.

The lawmakers expressed dissatisfaction that despite billions of naira injected into the sector through the Central Bank of Nigeria and other intervention mechanisms, Nigerians are yet to see commensurate improvement in electricity supply.

In his defence, Okwuokenye clarified that the current management took over the company in 2023 through a receivership arrangement. He maintained that the new investors cannot be held accountable for financial decisions or obligations incurred as far back as 2013.

He disclosed that the company is currently servicing inherited liabilities, including obligations to the Central Bank of Nigeria, and remains committed to clearing historical debts while stabilising operations.

The committee directed AEDC to submit all relevant documents relating to power allocation, intervention funds, loan repayments and infrastructure investments to aid the ongoing investigation.

It also instructed AEDC to reappear before the panel alongside the Transmission Company of Nigeria (TCN) to clarify issues concerning bulk power allocation, transmission constraints and the interplay between both entities in the distribution chain.