40% of generated electricity lost to theft amidst metering crisis

NIGERIA may be losing about 40 per cent of electricity generation to theft even as the metering of over eight million consumers remained a challenge.

In December last year, about N36.2 billion was lost out of the N134.53 billion worth of electricity billed by the distribution companies, translating to revenue collection of N98.36 billion.

Amidst the liquidity crisis in the sector and the push towards a cost- reflective tariff, Group Managing Director, Sahara Power Group, Kola Adesina said every day about 40 per cent of energy is lost to theft.

Speaking at the just concluded Nigerian Electricity Regulatory Commission ( NERC) workshop organised for judges, Adesina said people who have invested in the sector are counting losses even as the judiciary is slow in delivering a judgment that should reduce the losses.

“So, you have an installed capacity, you have invested heavily anticipating that revenue will come along a particular stream but you have people in the system that will take the electricity and not pay,”

“Unfortunately, when you take them to court it takes forever for these cases to be determined. This is an area I want to appeal to judges about. I am glad this is one of the reasons we are here; if you step back from the emotion of the service that you are receiving you will understand why you are receiving the service in that manner; that it is not because investors are incompetent or are not putting the money but it is because the Nigerian behaviour and the value system is eroding everything commonsensical and universal within the power space. I doubt if we will see light at the end of the tunnel if we continue with the current practice,” Adesina said.

Principal Managing Partner, George Etomi & Partners, George Etomi, noted however that there is a need to meter consumers.

“Metering is a big issue in the power sector as one of the biggest irritations is estimated billing, not that it is illegal but if there is a metering gap, there is bound to be estimation. Etomi insisted that the idea of estimated billing is unacceptable.

“We are calling for reforms which the Electricity Act will cater to; this is the reason we are here, and we seek the cooperation of the judiciary to resolve these things. Seminars like this work for me and we should see ourselves as co- travellers in the judiciary system while we continue to remind ourselves of the powers that we have to make sure that justice is done,” he noted.