Eko Electricity Distribution Company (EKEDC) has announced a major restructuring of its operations with the creation of a new subsidiary, Excel Electricity Distribution Company Limited, which will exclusively handle power distribution across Lagos State.
In a statement issued on Tuesday, the General Manager, Corporate Affairs, Mr. Babatunde Lasaki, said the establishment of the new subsidiary was in full compliance with the provisions of the Electricity Act 2023 and directives from the Lagos State Electricity Regulatory Commission (LASERC).
According to Lasaki, LASERC had directed that Eko DisCo, which currently operates across both Lagos and Ogun States, establish a separate entity to manage its Lagos operations under a dual regulatory framework involving both LASERC and the Nigerian Electricity Regulatory Commission (NERC).
“Accordingly, EKEDC has incorporated Excel Electricity Distribution Limited to manage its Lagos operations under the regulatory oversight of both LASERC and the Nigerian Electricity Regulatory Commission (NERC),” EKEDC said.
Eko DisCo not sold, company clarifies
He clarified that Eko Electricity Distribution Company Plc remains a legally recognized entity and has not been sold, transferred, or dissolved. The company, he said, remains owned by West Power and Gas Limited (WPG) with 60 percent shareholding, while the Bureau of Public Enterprises (BPE) holds the remaining 40 percent on behalf of the Federal Government.
“Excel Electricity Distribution Limited is a 100 per cent subsidiary of EKEDC and will now perform all distribution-related activities previously handled by EKEDC in Lagos State,” it added.
It said that all existing customer service personnel would remain the same while billing and payment processes remain unchanged for now.
“The only noticeable change will be the transition in branding from Eko DisCo to Excel DisCo,” the company stated.
The company advised customers and stakeholders to continue contacting their usual service representatives for all inquiries and support during this transition.
As part of the restructuring, Eko Electricity Distribution Company Plc has transitioned into a holding company.
This change, made in compliance with regulatory directives, will not disrupt service delivery or operational efficiency in Lagos.
The management reiterated its commitment to maintaining high standards of corporate governance and regulatory compliance.
It also reaffirmed its dedication to delivering reliable, efficient, and sustainable electricity supply to all customers through its newly licensed subsidiary, Excel DisCo.
“This development is purely a regulatory and structural transition, not a takeover or divestment,” the company stressed.
“This clarification is necessary to ensure public understanding and transparency regarding important developments in Nigeria’s electricity sector.”
What you should know
In June 2023, President Bola Tinubu signed the Electricity Act 2023 into law, repealing the Electric Power Sector Reform Act, 2005.
This Act decentralizes the power sector, giving states authority to regulate electricity within their territories.
Twenty-three states have already passed enabling laws to establish their electricity markets.
Fourteen states now have formal NERC transfers of regulatory oversight.
In January, the Chairman of Transgrid Enerco Limited, Engineer Olubunmi Peters, confirmed the planned acquisition of West Power & Gas Limited’s 60% equity stake in Eko Electricity Distribution Company.
He confirmed the development during the signing of the Share Purchase Agreement (SPA) between Transgrid Enerco Limited and West Power & Gas Limited, the parent company of Eko DisCo.