Nigeria uses business intelligence to reduce ATC&C losses


“A mind that goes to a new idea never goes to its original size.” This was the opening statement of Jamil Gwamma, CEO of Nigerian utility KEDCO, in a presentation held at African Utility Week last week (16-18 May 2017)

The CEO was accompanied by Obumneme Nwafor, head of Strategy Research at the Center for Professional Development and Research in Scotland, in highlighting how KEDCO is using business intelligence and analytics to reduce its aggregate technical, commercial and collections losses (ATC&C).

In providing services to its 97 million consumers, Kano Electricity Distribution Company (KEDCO) employs 2,400 personnel and spends up to $34 billion to purchasing power each year, learnt.

According to Gwamma’s presentation, KEDCO implemented a multi-disciplinary research approach to gather data regarding its operations, consumer energy consumption and bill payments, and how other utilities operate, to understand how the utility can improve its business model.

The research showed that Nigeria’s ATC&C losses range between 29.4% and 59.1% with 37% losses classified as technical losses.

According to the study, operational deficiencies were found to be a large contributor to the company’s high rate of ATC&C losses.

The findings of the study pushed KEDCO to deploy multiple programmes which aimed at helping the energy provider strengthen its operational processes and reduce its commercial and collection losses.

So far, these programmes have helped KEDCO reduce its ATC&C losses by 9%.

As a result of the study, KEDCO concluded that:

  • Electricity losses can be detected early, tracked and traced down to region, units and individuals.
  • Analytics provides a clear visualisation of the incidents happening in the distribution network.

Smart meters and ATC&C losses

In other news, Ibadan Electricity Distribution Company announced that it attracted a $400m investment from the Trans-Sahara Consortium that will help facilitate the implementation of its smart meter programme.

Under the smart meter rollout programme, the utility will upgrade its existing analogue electric metering system with the advanced metering infrastructure to put an end to energy theft which is a huge revenue drain in the sector. Read more…


Image credit: 123rf.