Excerpt
The Northern Electricity Distribution Company (NEDCo) is a pivotal entity in Ghana’s energy sector, responsible for the distribution of electricity across a significant portion of the country. Established in 1987 as the Northern Electricity Department (NED) under the Volta River Authority (VRA), its primary mandate was to extend electricity distribution to the Brong-Ahafo, Northern, Upper East, and Upper West Regions, aligning with VRA’s 161kV transmission grid expansion to northern Ghana.
Vision and Mission
NEDCo envisions becoming the leading power distributor in the West African sub-region. Its mission is to supply quality and reliable electricity to create opportunities for socio-economic development in northern Ghana and beyond, in a safe, sustainable, and commercially viable manner.
Purpose of Establishment
The inception of NEDCo was a strategic move to enhance electricity distribution in Ghana’s northern regions. In June 1994, the Government of Ghana initiated the Power Sector Reform (PSR) program, aiming to improve efficiency and managerial effectiveness within the energy sector. As part of this reform, in 1997, the VRA registered NEDCo as a wholly-owned subsidiary with its own Board of Directors, transitioning from NED to NEDCo. This restructuring was fully operationalized in May 2012, solidifying NEDCo’s role as a key player in the nation’s electricity distribution framework.
Operations and Roles
NEDCo’s operational footprint is extensive, covering approximately 64% of Ghana’s geographical area. The company is the sole distributor of electricity in the Ahafo, Brong-Ahafo, Bono East, Savannah, Northern, North East, Upper East, and Upper West Regions, as well as parts of the Ashanti, Western North, and Oti Regions. Beyond national borders, NEDCo manages electricity supply to select border towns in Burkina Faso, Côte d’Ivoire, and Togo.
Despite its vast coverage, NEDCo faces challenges such as low customer density and varying access to electricity within its operational areas. As of June 2023, access to electricity in NEDCo’s operational area was about 68%, compared to the national average of approximately 88.85%. The company has experienced significant growth, with its customer base expanding from less than 20,000 in 1987 to over 1.2 million by December 2023.
Leadership and Organizational Structure
NEDCo’s leadership is structured to ensure efficient management and operational effectiveness. The company is headed by a Managing Director, supported by five functional managers overseeing Technical, Human Resource, Finance, Commercial, and Real Estate departments. Additionally, an Audit Head reports administratively to the Managing Director. The company’s operations are decentralized into five Area Offices located in Sunyani, Techiman, Tamale, Wa, and Bolgatanga, each managed by an Area Manager and supported by specialized officers in engineering, finance, commerce, IT, and human resources.
Reforms and Strategic Objectives
The establishment and evolution of NEDCo are deeply rooted in Ghana’s Power Sector Reform initiatives. The primary objectives of these reforms include making NEDCo economically viable and sustainable by attracting additional resources to finance its operations. This strategic direction enables NEDCo to engage directly with multilateral agencies such as the World Bank, JICA, and the IMF for financial support, thereby bolstering its capacity to deliver reliable electricity services.
References
- https://www.nedcogh.com/about-us/
- https://www.nedcogh.com/operations/
- https://vra.com/subsidiaries/northern_electricity_distribution.php