Eko DisCo not sold, says Management

The Eko Electricity Distribution Company Plc has dismissed reports suggesting that it has been sold or taken over, insisting that it remains a legally recognised and fully operational entity.

In a statement made available to our correspondent on Tuesday by the company’s spokesman, Babatunde Lasaki, the management of the company clarified that it had only registered a new subsidiary identified as Excel Electricity Distribution Company Limited to comply with regulatory requirements introduced by the Lagos State Electricity Regulatory Commission under the new Electricity Act 2023.

The company explained that the move was part of a “structural and regulatory transition, not a takeover or divestment.”

It said the Electricity Act 2023 devolved regulatory oversight of the electricity market to state governments, prompting the Lagos State Electricity Regulatory Commission to direct Eko DisCo, which hitherto operated in Lagos and Ogun states, to create a separate entity for its Lagos operations.

“Eko Electricity Distribution Company Plc has not been sold or taken over. Eko DisCo remains a legally recognised and operational entity duly incorporated under Nigerian law,” the management stated.

The company explained that the restructuring was necessary after the enactment of the Electricity Act 2023, which devolved regulatory oversight of the electricity market to state governments.

“Following the new law, the Lagos State Electricity Regulatory Commission required Eko DisCo, which operates in Lagos and Ogun States, to create a separate entity for its Lagos operations,” it said.

To meet this requirement, Eko DisCo registered Excel Electricity Distribution Limited as a wholly owned subsidiary that will take over its distribution business within Lagos State.

The statement further noted that the new company will operate under the regulatory oversight of LASERC.

“Excel Electricity Distribution Limited is a 100 per cent subsidiary of EKEDC. It will perform all the electricity distribution activities previously done by Eko DisCo under the same operational structure,” the company said.

The firm assured customers that the change in name will not affect services, as the same personnel will continue to serve them.

“Customers will notice the gradual name change from Eko DisCo to Excel DisCo. However, they should continue to pay their bills and contact the same personnel for all service needs,” it added.

Clarifying ownership, the statement reaffirmed that EKEDC remains jointly owned by West Power and Gas Limited, which holds 60 per cent of the shares, and the Bureau of Public Enterprises, representing the Federal Government with the remaining 40 per cent.

The management also revealed that Eko DisCo has now transitioned into a holding company to reflect the new structure.

“As part of this transition, Eko Electricity Distribution Company Plc has transmuted into a holding company. This change, carried out in full regulatory compliance, will not impair our operations in Lagos State,” the company assured customers.

It reiterated its commitment to reliable and sustainable electricity supply through its new subsidiary, saying, “The DisCo remains a key player and investor in the Lagos electricity ecosystem, committed to delivering efficient and sustainable power supply through Excel DisCo.”

It added that the clarification was necessary in the interest of factual accuracy and public understanding following speculation about the ownership and restructuring of the electricity distributor.

Over the weekend, LASERC announced Excel DisCo as the subsidiary registered by Eko DisCo to operate under the state regulator.

Ikeja Electric also registered IE Energy Lagos Limited. Both Excel DisCo and IE Energy will be regulated by LASERC.