TVC E. Electricity Distribution Companies (Discos) provide last mile services in the electricity supply value chain. Discos provide the connection between customers and the electricity grid and as such, are plagued with the “last mile problem” of high costs and quality of service similarly faced by last mile service providers in the telecoms industry.
Discos are responsible for transforming or stepping down electricity from the high voltage of 132 kV at the transmission level, to the lower voltage levels of 33kV/11kV/0.415kV depending on the category of customer. Electricity in most residential homes is supplied at voltage level of 0.415kV.
Discos are also responsible for the marketing and sale of electricity to customers. This is an extremely important function in the electricity value chain as Discos are the cash boxes of the entire electricity value chain.
All the revenue needed to sustain the electricity industry is earned through the distribution sector.