Asides being a power generation company, we are also involved in the transmission, distribution and marketing of electricity in Nigeria. We seek to complement the efforts of the Successor Generation companies (Gencos) and National Integrated Power Projects (NIPPs) in combating widespread power shortage and scaling electricity generation capacity in Nigeria.
We generate power in forms such as electrical, hydro, water or gas for all our categories of clients. CEU is licensed to supply this power to consumers alongside the federal owned NBET (National Bulk Electricity Trading Company) through Purchasing Power Agreements (PPAS).
With regards to distribution, we ensure that our various customers are connected to central grids and also offer ancillary services such as installation, routine maintenance of power distribution equipment. We operate under a new ring-fenced supply distribution and collection structure based on the recent cost-reflective willing buyer, willing seller regulatory approval of the Nigerian Electricity Regulation Commission (NERC) and the Ministry of Power.
A major issue confronting the power sector in Nigeria is the high level of ATC&C losses (Aggregate Technical, Commercial, and Collections). Between January and March 2020, the estimated losses in the power sector were capped at N117.8 billion. Majority of these losses were attributed to the shortage of lack of transmission infrastructure and distribution infrastructure as well as the inability to generate a large quantum of electricity daily, due to gas shortage. To this end, CEU is poised to provide the needed support to Transmission and Distribution companies (Discos) by supplying infrastructure required to deliver additional capacity throughout the country. We are also well-positioned to strengthen indigenous gas production and supply which is essential for electricity generation.
CEU is also involved in the purchasing, marketing and selling of electricity based on terms and conditions stipulated by NERC. As an independent power company, we play an important role as producers and intermediaries in the power value chain. Essentially, we seek to satisfy the varying energy demands of our consumers and ensure they have constant access to power year-round.