Sopuruchi Onwuka

Electric power distribution and marketing company, Power Eko Electricity Distribution Company Plc popularly called Eko DisCo, has declared that its new subsidiary, Excel Electricity Distribution Company Limited would now operate its businesses in Lagos State.

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It also stated that the floating of special purpose entity to drive its operations in Lagos State does not in any way entail that the parent company has ceased to exist or has been sold.

It clarified that the new Excel Electricity Distribution Company Limited which is totally owned by Eko Disco would now take over the operations of the parent company in Lagos State in compliance with Lagos State Government regulatory requirements, Eko Disco said in a media statement.

According to clarification by Eko Disco, the restructuring of the company’s operations in Lagos State  follows the enactment of the Electricity Act 2023, which devolved regulatory oversight of the electricity market to state governments.

Consequently, the Lagos State Electricity Regulatory Commission (LASERC) required Eko DisCo, which operates in Lagos and Ogun States to register a separate entity for its Lagos State operations under the regulatory oversight of LASERC and the Nigeria Electricity Regulatory Commission (NERC).

The company also dismissed speculations that the parent EKEDC has been sold, stating that “Eko DisCo remains a legally recognized and operational entity duly incorporated under Nigerian law. There has been no sale, transfer of ownership, or dissolution of the company.”

The statement also holds that “Eko Electricity Distribution Company Plc Remains a Legal Entity Owned by West Power and Gas and BPE representing the Federal Government of Nigeria:

“EKEDC also known as Eko DisCo continues to exist as a legal entity, with 60 per cent shareholding retained by West Power and Gas Limited (WPG) — the core investor and the BPE which is holding the balance 40% shareholding on behalf of the FGN. The company continues to operate under full compliance with good corporate governance and regulatory frameworks.”

According to public statement, the newly licensed Excel Electricity Distribution Limited remains a 100% subsidiary of EKEDC that would now perform all the electricity distribution activities previously done by EKEDC under EKO DISCO.

“All customers of Excel DisCo will continue to be served by the same personnel who served them in EKODISCO and should pay their bills in the same way they have been paying.  They will notice the name change as we transition the name from EKODISCO to Excel Disco.  For now, they should continue to contact the same personnel they normally contact for all their service needs and customer requests,” the company stated.

With the new arrangement, however, Eko Electricity Distribution Company Plc said it “has transmuted into a holding company” as part of this transition.

“Management hereby reiterates that Eko Electricity Distribution Company Plc remains a key player and investor in the Lagos electricity ecosystem, committed to delivering reliable, efficient, and sustainable power supply to all customers through Excel Disco.

“The recent licensing developments represent a regulatory and structural transition, not a takeover or divestment. This structural change carried out in regulatory compliance would in no way impair our operations in Lagos State,” the company stated.