In a strategic move following the new Electricity Act 2023, Akwa Ibom State has established its own power distribution company, named Ibom Utility.
This company is mandated to purchase and distribute electricity throughout the state.
This development comes on the heels of Enugu State’s recent establishment of a similar distribution company, marking a significant shift in the Nigerian Electricity Supply Industry (NESI) as it transitions into a new market regime focused on bilateral trading and cost-reflective tariffs.
According to a senior source at Ibom Power, one of Nigeria’s first Independent Power Plants (IPPs), the establishment of Ibom Utility will allow it to compete directly with the Port Harcourt Distribution Company (PHDC), which currently serves Akwa Ibom as well as Rivers, Cross River, and Bayelsa states.
“The new Electricity Act has given us the opportunity to sell our power to other distribution companies. One of the challenges we face is that the existing distribution company often does not take sufficient load. With the establishment of Ibom Utility, if PHDC fails to meet its obligations, our state company can step in to manage the load,” the source explained.
Additionally, the new Electricity Act has positioned Ibom Power to engage in bilateral agreements with nearby distribution companies, including Edo, Ibadan, and Eko, to offtake its available generation capacity of approximately 150 megawatts. This strategic move aims to enhance electricity distribution and reliability in Akwa Ibom State.
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