Yola DisCo gets new private operator 6 years after

20 Dec Yola DisCo gets new private operator 6 years after

The Yola Electricity Distribution Company (YEDC), which has been under the control of the Bureau of Public Enterprises (BPE), now has another private operator.

The company is responsible for supplying electricity to consumers across the five states of the Northeast and has its head office in Yola, the Adamawa State capital.

According to BPE, the new investor, Quest Electricity won the bid and began the acquisition process in July 2021. Just two weeks ago, the handover process was completed at the BPE headquarters in Abuja by the directors of Quest Electricity.

This means Quest Electricity now controls 60 per cent shares of the DisCo while BPE retains 40% on behalf of the federal government.

They are the owners of Mainstream Energy Solutions Limited (MESL), the operators of the Kainji and Jebba hydropower plants in Niger State, mainly driven by the board Chairman, Col. Sani Bello (Rtd).

The Director General of BPE, Mr. Alex Okoh, in the statement further said in addition to paying the purchase fee of N19bn, the new investor – Quest Electricity has committed to a Performance Improvement Programme (PIP) with an investment of N28bn within two years.

The performance targets for the new operator of Yola DisCo include the reduction in Aggregate Technical, Commercial and Collection (ATC&C) losses from 80 per cent being the highest among the DisCos so far to 29%. This is an expected loss 51% reduction within the two years.

Quest Electricity is expected to grow the customer base from 396,650 to 596,650, which will be nearly 50% increase in customer base. It targets to also increase energy supply from 1,305 gigawatts hour (GWh) to 1,714GWh, representing about a 31% increase.

Chairman of Quest Electricity Nigeria Limited, Alhaji Adamu Mele, said there is insecurity in the company’s franchise area but that firm as its plans to transform the DisCo.