Ikeja Electric cracks down on energy theft
In a decisive move to combat the rising tide of energy theft, Ikeja Electric Plc (IE) announced over the weekend that individuals caught stealing electricity will face immediate prosecution. This marks a significant shift from the previous approach of merely imposing loss of revenue (LOR) penalties. The company now intends to enforce the full weight of the law against offenders.
This bold stance was revealed during IE’s July Stakeholders Forum, a monthly meeting designed to educate customers about the company’s operations and initiatives aimed at improving service delivery.
Rising Incidents of Energy Theft
Kingsley Okotie, Head of Corporate Communication at IE, expressed concern over the escalating incidents of energy theft, particularly in the past three months following the implementation of the revised tariff on Band A feeders. “The theft is massive, and the company cannot guarantee meeting customer expectations if this ugly trend continues. Ironically, some perpetrators believe that if they haven’t been caught, there are no consequences. This is false and we must change the narrative,” Okotie stated.
He emphasized that for the Nigerian Electricity Supply Industry (NESI) to remain viable, all stakeholders must collectively combat energy theft. The stability of the entire sector hinges on the health of the Distribution Companies (Discos), and unchecked theft poses a significant threat to their operations.
Strategies to Combat Energy Theft
To address this growing problem, IE has implemented a whistleblowing platform that allows customers and concerned citizens to report incidents of theft anonymously. This platform, managed independently of IE’s operations, ensures the confidentiality of the informants’ identities. To incentivize reporting, IE offers rewards to those who provide verified information about energy theft. Informants can receive up to 10 percent of the reconnection fee paid by residential and small business offenders and up to 5 percent for commercial and industrial offenders.
Okotie reiterated that energy theft is a criminal offense under the Electricity Act, carrying penalties ranging from six months to three years imprisonment. Interfering with meters or the works of licensees can also result in a three-year prison sentence. “Ikeja Electric can, under the law, prosecute people and companies for the criminal offense of energy theft. In line with regulations stipulated by the Nigerian Electricity Regulatory Commission (NERC), the NERC Order on unauthorized access, meter tampering, and bypass allows Discos to disconnect customers illegally connected to their network,” he warned. Reconnection is only possible after offenders have compensated for the loss of revenue, paid back-bills established by the Disco, and covered reconnection costs and administrative charges.
Eko Electricity Distribution Company’s Parallel Efforts
In a related effort, the Eko Electricity Distribution Company (EKEDC) has been taking significant steps to recover over N100 billion lost to energy theft and vandalism within its network. The utility recently dismissed about 20 employees involved in illegal activities and warned that it would prosecute residents caught engaging in energy theft and illegal connections.
During a Customer Engagement Forum with customers from the Orile Business District, EKEDC’s Acting Chief Executive Officer, Mrs. Rekhiat Momoh, highlighted the persistent issues of energy theft and vandalism. Represented by Mrs. Catherine Ezeafulukwe, EKEDC’s Chief Customer Experience Officer, Momoh lamented the substantial financial losses and safety risks posed by these activities. “The losses we incur as a result of energy theft and vandalism run into several billions of Naira. This is why we are taking the campaign against energy theft and vandalism seriously because it is negatively affecting our bottom line and our customers,” she said.
Financial Implications and Zero-Tolerance Policy
Momoh revealed that EKEDC’s debt profile stands at about N100 billion, with collection efficiency hovering around 87 to 89 percent despite purchasing energy at 100 percent from Bulk Electricity Traders. This results in a persistent debt of 15 to 18 percent that the company struggles to offset in the energy market.
In a stern warning, Momoh stated that EKEDC has a zero-tolerance policy for employees involved in illegal practices. “We will sack them because we do not want such attitudes within our organization. If you know any of our staff indulging in energy theft or collaborating with customers to do so, EKEDC will not hesitate to dismiss them. In the last six months, we have dismissed over 20 staff, with many still being probed for their involvement in illegal practices,” she declared.
A Call for Collective Action
The crackdown on energy theft by Ikeja Electric and EKEDC underscores the urgent need for collective action to protect the integrity of Nigeria’s electricity supply industry. Both companies are taking decisive steps to curb the illegal activities that threaten their operations and financial stability.
As IE and EKEDC intensify their efforts to combat energy theft, they call on all stakeholders, including customers and employees, to join in the fight. By reporting illegal activities and adhering to the legal framework governing electricity usage, everyone can contribute to a more stable and efficient energy sector.
The measures being implemented by these companies serve as a clear message that energy theft will no longer be tolerated. With strict enforcement of the law and incentivized reporting systems, the hope is to significantly reduce the incidence of theft and ensure a reliable electricity supply for all.
