Ikeja Electric Plc (IE) announced over the weekend that individuals caught engaging in energy theft will be immediately prosecuted. The company has shifted from merely imposing loss of revenue (LOR) penalties to enforcing the full extent of the law against offenders.
This announcement was made at IE’s July Stakeholders Forum, a monthly meeting aimed at educating customers about the company’s activities and initiatives for improved service delivery.
Kingsley Okotie, IE’s Head of Corporate Communication, expressed concern over the rise in energy theft, particularly in the past three months following the implementation of the revised tariff on Band A feeders. He emphasized that unchecked theft jeopardizes the entire electricity value chain.
“The theft is massive, and the company cannot meet customer expectations if this trend continues. Some perpetrators believe there are no consequences if they haven’t been caught. This is false, and we must change the narrative,” Okotie stated.
Okotie called for collective action against theft, stressing that the survival of the Nigerian Electricity Supply Industry (NESI) depends on the cooperation of all stakeholders. He highlighted that issues affecting Distribution Companies (Discos) have a ripple effect on the entire NESI.
To combat theft, IE has implemented a whistleblowing platform for anonymous reporting of energy theft incidents. This platform is managed independently to ensure confidentiality. IE incentivizes whistleblowing by offering rewards: up to 10% of the reconnection fee for verified reports on residential and SME offenders, and up to 5% for commercial and industrial offenders.
Okotie also reminded that energy theft is a criminal offense under the Electricity Act, with penalties ranging from six months to three years of imprisonment. Tampering with meters or interfering with licensee works carries a three-year imprisonment sentence.
“Ikeja Electric can prosecute individuals and companies for energy theft. According to Nigerian Electricity Regulatory Commission (NERC) regulations, unauthorized access, meter tampering, and bypass allow Discos to disconnect illegally connected customers. Reconnection is only possible after offenders pay for the lost revenue, reconnection costs, and administrative charges,” Okotie warned.
In related news, Eko Electricity Distribution Company (EKEDC) has launched efforts to recover over N100 billion lost to energy theft and vandalism. The company has dismissed around 20 staff members involved in illegal activities and collaborating with customers to tamper with electrical equipment. EKEDC Acting CEO, Mrs. Rekhiat Momoh, stated that energy theft and vandalism have caused significant financial losses and safety risks within the Orile Business District.
“The losses we incur due to energy theft and vandalism run into billions of Naira, negatively affecting our bottom line and service delivery. Despite buying energy at 100% from Bulk Electricity Traders, our collection efficiency is around 87 to 89%, with 15 to 18% outstanding debt,” Momoh revealed.
EKEDC maintains a zero-tolerance policy for staff involved in energy theft, having dismissed over 20 employees in the past six months, with ongoing investigations into others.
“We will sack any staff involved in energy theft or collaborating with customers. We do not tolerate such behavior within our organization,” Momoh affirmed
credit: Nation
