Energy theft: Ikeja Electric threatens immediate legal action

Electricity Distribution Company, Ikeja Electric Plc (IE), at the weekend warned that offenders caught in the act of energy theft will be immediately charged to court. The company emphasised that the era of merely imposing loss of revenue (LOR) penalty alone on offenders is over, as it will now enforce the full weight of the law against offenders.

The company made this announcement at its July Stakeholders Forum, a monthly enlightenment meeting aimed at educating its customers about the company’s activities and laudable initiatives to foster improved service delivery.

IE’s Head of Corporate Communication, Kingsley Okotie, lamented the increase in energy theft, especially over the last three months following implementation of the reviewed tariff on Band A feeders. He noted that the company and the entire electricity value chain cannot survive if theft goes unchecked.

“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,” he said.

Okotie stated that for the Nigerian Electricity Supply Industry (NESI) to survive, all stakeholders must fight in unison against theft, as pilfering of electricity hinders the stability of the sector. He emphasised that whatever happens to the Distribution Companies (Discos) affects the entire NESI.

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Speaking on strategies to curb theft, the company’s spokesman hinted that the whistleblowing platform is a very effective way for customers and well-meaning Nigerians to report incidents anonymously. He added that the platform is managed independently of the business, ensuring customers identity remain anonymous and highly confidential.

To reinforce the company’s commitment, IE, he disclosed, is incentivising whistleblowing by rewarding those who report any illegality and theft of electricity. Persons who submit verified reports on Non-Maximum Demand (Residential & SMEs) offenders will get up to 10 per cent of the reconnection fee paid by the offender while for Maximum Demand (Commercial & Industrial) offenders, whistle-blowers will get up to five per cent of the reconnection fees paid by the offender.

He further explained that energy theft is a criminal offence under the Electricity Act, attracting a sentence between six months to three years imprisonment. Interfering with meters or the works of licensees carries a sentence of three years imprisonment.

“Ikeja Electric can, under the law, prosecute people and companies for the criminal offence 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. Reconnection is only possible after offenders have paid for the loss of revenue by paying back-bills established by the Disco, along with reconnection costs and administrative charges,” Okotie warned.

In a related development, the Eko Electricity Distribution Company (EKEDC) has taken steps aimed at recouping over N100 billion it has lost to energy theft and vandalism within its network. The utility also confirmed that it has dismissed about 20 staff members found to be involved in illegal activities and collaborating with customers to tamper with electrical equipment, while also threatening to prosecute residents caught engaging in energy theft and illegal connections.

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The EKEDC Acting Chief Executive Officer, Mrs. Rekhiat Momoh, made this known at its Customer Engagement Forum with customers from the Orile Business District, including Sanya, Orile, Ikate, Doyin, Coker, Aguda, Thomas Animashaun, parts of Eric Moore, TEXLON, Passat, parts of Alaka, Itire and Kernel.

Momoh, who was represented at the engagement by the EKEDC’s Chief Customer Experience Officer, Mrs Catherine Ezeafulukwe, regretted that energy theft and vandalism have been persistent issues plaguing the service delivery to all its network especially under the Orile District, causing significant financial losses and posing safety risks.

“The loses we incur as a result of energy theft and vandalism runs 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 also our customers.

“Energy theft often prevents us from providing efficient service because it affects our facilities and infrastructure, impacting how consumers get electricity. Of course, we pay for energy whether it is distributed to customers or stolen, leading to billions of Naira in losses.

“Our debt profile is about N100 billion and our collection efficiency hovers around 87 to 89 percent despite buying energy at 100 percent from the Bulk Electricity Traders. We usually have around 15 to 18 percent outstanding debt that we struggle to offset in the energy market,” she revealed.

“We have a zero-tolerance policy for any staff reported and confirmed to have been involved in this act.

“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,” Momoh said.

Energy theft: Ikeja Electric threatens immediate legal action