Interstate Consortium- the preferred bidder for Enugu Electricity Distribution Company – said it would begin operations with unique private sector model that has high efficiency and corporate governance standards that would set the pace for electricity distribution in Nigeria.
This follows the signing of transaction and industrial agreements between the Federal Government and preferred bidders for the purchase of the successor generation and distribution companies of the Power Holding Company of Nigeria (PHCN), The Chairman of Power House International – a member of the Interstate Consortium – Mr Kester Enwereonu, said the Interstate Electricity Distribution Company, which is led by the Metropolitan Electricity Authority (MEA) of Thailand, has high efficiency and corporate governance standards and has a model, competes effectively with private sector models worldwide.
He said the consortium will upgrade the Enugu Disco network and deliver quality service to its customers. Apart from its financial capability, the group boasts of solid experience, he added. For instance, MEA distributes electricity in the Thai capital city of Bangkok and environs and is reputed to be one of the most efficient developing world power distribution companies with record technical and commercial losses of below five percent over the past eight years.
Prior to the privatisation programme, the chief executive officers of select distribution companies of PHCN visited MEA and its sister company Provisional Electricity Authority of Thailand (PEA), which distributes power in the rest of the regions in Thailand. As model state utilities, they are efficiently run and make major contribution to state revenues. MEA has annual turnover of $6 billion.
He said for over 50 years, MEA has had immense experience in the management of electricity distribution company with large customer base. In 2010, its customer base was over three million. During the intervening period, through continuous improvement in both power system development and customer services, MEA has been able to maintain an ATC&C loss level that surpasses the expectations of the Bureau of Public Enterprises (BPE) in the ongoing privatisation.
A detailed insight into the structure of the company shows that the Metropolitan Electric Authority of Thailand will run the company while Chrome Energy and Powerhouse International are co-investors. “Interstate Consortium will run Enugu in the best professional way with global best practices,” Enwereonu said.
The strength of Interstate Electrics Limited derives from the global experience of its key partner and technical operator, MEA of Thailand, which was established in 1956. MEA is responsible for the distribution and sales of electricity to users in Bangkok and metropolitan vicinities including Nonthaburi and Samutprakarn provinces. MEA’s distribution area covers 3,195 square kilometres, which is divided into 14 districts with a population of about eight million and energy sales of 44,714 GWH of electricity.
With the promoters of Interstate Consortium, it is expected that the consortium would blaze the trail in electricity distribution, he added. Chrome Group and Powerhouse International Limited are promoted by Chief Emeka Offor and Mr Kester Enwereonu.