CHAPTER ONE

1.0 INTRODUCTION

Electricity is one of the most important blessings that science has given to mankind. It has also become a part of modern life and one cannot think of a world without it. Electricity has many uses in our day to day’s life. Electricity occupies a strategic position in the social and industrial development of every country and in indeed any company and industrial age, without electricity, economic and industrial activities might be paralyzed. The significance of electricity is such better appreciated, when one realizes that all-manufacturing processes on whatever scale requires electric current. In fact, it can be stated that in most cases, other sectors of the economy rely on the available of the electricity for its existence and survival. KEDCO therefore, established to operate with a focus on social, economic and political objective which are expected to be met simultaneously. The research focuses on the problems KEDCO facing in the process of electricity distribution in Nassarawa and Tarauni local government areas of Kano state.

1.1 HISTORICAL BACKGROUND

In May 2012, a consortium of five companies merged together for the purpose of bidding for Kano Electricity Distribution Company (KEDCO) and offering efficient and sustainable energy to the people within the business territory of the company made up of Kano, Jigawa and Katsina states. The companies are: the Sahelian Energy and Integrated Services Ltd (SEIS); the Kayseri ve Civari Electric T.A.S (KCETAS) Turkey, and the Dantata Investment and Securities Company Ltd. Others are, INCAR Power Ltd and the Highland Electricity Ltd. All together they formed the Sahelian Power SPV Ltd; the company emerged as the core investor in the Kano Electricity Distribution Company Plc, after a very rigorous and transparent process which gained world acclamation.

KEDCO is one of the eleven Distribution Companies privatized by the Federal Government of Nigeria as part of the electricity power sector reform program implementation. Located in the north western geopolitical zone of Nigeria, the Company has license to generate, distribute and market electricity in the three states of Kano, Jigawa and Katsina.

Geographical coverage of the company is 67,128 Km2. The company has the largest potential in terms of customer population with the combined population of the three states at 19,564,000.00 (2006 national census).

KEDCO Plc became a Public Liability company on November 7th 2005, after the implementation of the Electricity Sector Reform Act of 2005 had started in earnest. Until November 1st 2013 when the company was physically taken over by the core investor, the distribution company operated as a pseudo-business enterprise.

As a distribution company, its core business activities are as described under section 67 of the Electricity Power Sector Reform Act which stipulates that: “A distribution license shall authorize the licensee to construct, operate and maintain a distribution system and facilities including but not limited to the following activities as may be specified in the license:

a)     The connection of customers for the purpose of receiving a supply of electricity;

b)    The installations, maintenance and funding of meters, billing and collection and,

c)     Such other distribution service as may be prescribed for the purposes of this section”.

As at today, the company discharges its functions of distributing and marketing of electricity through twelve business units located across the three states.

THE BOARD OF DIRECTORS

Members of the Board of Directors of Kano Electricity Distribution Company are reputable people with a pedigree. They include the Chairman in person of Alhaji Tajuddeen Aminu Dantata, Dr. Jamil Isyaku Gwamna who is the Managing Director/Chief Executive Officer, and Alhaji Yusuf Hamisu Abubakar. Others are Alhaji Abubakar Sadiq Dantata, Dr. Umaru Abdulmutallab and Engineer Mohammed Umar Zauro. The Bureau of Public Enterprises BPE is being represented on the Board while Barrister Daniel Okum is the Company secretary and Legal Advisor.

SENIOR MANAGEMENT TEAM

The management team of KEDCO is made up of a crop of seasoned and experienced professionals. The team is charged with the responsibility of assisting the Managing Director/Chief Executive Officer in the day-to-day running of the company.

There are six head of departments who go by the title ‘Chief’. The various departments are Technical services; Customer Relations; Control & Compliance and Corporate Strategy. Others are Finance & Account; and Admin.

The corporate communication is a unit under the MD/CEO’s direct supervision. The unit provides communication support to the management. The Head of corporate communication runs the unit. Still under the MD/CEO is an Executive Assistant (EA) to the Managing Director/Chief Executive Officer. He assists the MD/CEO to get organized in handling the dynamic nature of that office.

Under the leadership of the MD/CEO, the management team has been working tirelessly and coherently to implement the KEDCO transformation agenda whose main thrusts are improving operating efficiency of the utility; improving the entire work environment companywide and increasing the revenue generation capability of the company.

Each head of department has a number of units under his/her direct supervision.

1.2 STATEMENT OF THE PROBLEM

 KEDCO attributes nonpayment of bills to low electricity distribution on May 5, 2017

Kano Electricity Distribution Company (KEDCO) said that non-payment of the bills by customers has contributed so much to the low electricity distribution in Nassarawa and Tarauni LGA.

One of the major challenges facing the company in terms of the low distribution of the electricity in their catchment areas is that; non-payment of electricity bills by the customers.

The non-payment of bills has contributed so much towards the low distribution of the electricity supply in those two local governments under our jurisdiction.

Other challenges faced by the company as the illegal connections of electricity and the activities of vandals on transformers and cables.

Most of the People are complaining that KEDCO failed to provide the qualitative transformers which cause so many damages of fuses.

Customers are complaining that whenever they lodge their complaints to the company, it usually takes KEDCO long time before responding.

1.3 HYPOTHESIS

The research wishes to put forward the following hypothesis for testing:

H1 Lack of cordial relationship between KEDCO staffs and consumers leads to the problem of electricity distribution.

H0 lack of manpower development led to the poor distribution of electricity.

H1 lack of prepared meters led to poor payment of the tariff bill.

H0 lack of knowledge and low awareness of consumers led to poor payment of tariff bill.

1.4 AIMS AND OBJECTIVES

          The research is restricted to focuses on electricity distribution in Nassarawa and Tarauni local government of Kano state.  Therefore, the research will be emphasis to find out the following reasons.

       i.            To find out the problems of electricity distribution within the aforementioned local government.

     ii.            To know whether the privatization of electricity company was bedrock or otherwise.

  iii.            To find out whether the efficient power distributor focused on customer satisfaction or not.

1.5 SIGNIFICANCE OF THE STUDY

This research work well be of great importance to the following people as stated below:

1. Firstly, the result will create serious awareness in the revenue generation department of KEDCO.

2. It will serve as a source of information as well as guide to the administrative department of KEDCO, both Nassarawa and Tarauni district.

3. It will equally serve as a source of information to several students and practitioners who may embark on a similar or related topic.

4. If strictly applied, consumers of electricity will benefit from not suffering of unusual darkness as a result of vandalisation of KEDCO property.

5. Finally, the suggestions and recommendation contained herein would help immensely in eliminate problems of distribution if strictly applied on KEDCO.

1.6 SCOPE AND LIMITATION OF THE STUDY

The research work is limited to Kano electricity Distribution Company Nassarawa and Tarauni unit. The main constraint of the research is divided into the following parts:

a) Time constraints: due to the short time given for the study, the researcher could not get all the required information needed for the study.

b) Finance: as a result of money constraint the researcher had not enough money to carry out the study beyond the level. The researcher could not visit places where necessary information relevant to the study could be obtained.

c) Attitude of respondents: some of the respondents were unwilling to cooperate with the researcher because they felt; they have nothing to benefit from the study both financially and otherwise. Besides they were afraid of losing their jobs, if all information needed are released to the researcher.

1.7 DEFINITION OF THE KEY TERMS

ü ELECTRICITY: Electricity is the set of physical phenomena associated with the presence of electric charge. Although initially considered a phenomenon separate from magnetism, since the development of Maxwell's equations, both are recognized as part of a single phenomenon: electromagnetism. Various common phenomena are related to electricity, including lightning, static electricity, electric heating, electric discharges and many others. In addition, electricity is at the heart of many modern technologies.

ü DISTRIBUTION: the act of giving or delivering something to people. The act of delivering something to a store or business. The way that something is divided or spread out.

ü ELECTRICITY DISTRIBUTION: Electric power distribution is the final stage in the delivery of electric power; it carries electricity from the transmission

1.8 PLAN OF THE STUDY

This research work has been divided into five chapters, viz:

·        Chapter one consist of introduction, historical background of the study, statement of the research problem, aims and objective of the study, significant of the study, hypothesis and scope and limitation of the study, definition of the key terms and finally the plan of the study.

·        Chapter two deals with the different views of scholars on the electricity distribution.

·        Chapter three deal with population of the study and sample size, research methodology

·        Chapter four data presentation and analysis

·        Chapter five deals with summary, conclusion and recommendation. Bibliography and appendixes.

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