Ikeja Electric Plc (IE), Nigeria’s leading electricity distribution company, has taken a firm stance against energy theft, announcing stringent measures to combat the menace. Offenders caught in the act of energy theft will now face immediate legal action, as the company moves beyond merely imposing loss of revenue (LOR) penalties. This announcement was made during the company’s July Stakeholders Forum, a monthly meeting designed to educate customers about IE’s activities and initiatives aimed at enhancing service delivery.
Mr. Kingsley Okotie, Ikeja Electric’s Head of Corporate Communication, expressed concern over the increasing instances of energy theft, particularly over the past three months following the implementation of the revised tariff on Band A feeders. He highlighted that the rampant theft is detrimental not only to the company but to the entire electricity value chain, which relies on revenue from energy consumption to maintain and improve infrastructure.
“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.
Energy theft poses a significant threat to the stability of the Nigerian Electricity Supply Industry (NESI). Okotie emphasized that the success and sustainability of NESI depend on the collective efforts of all stakeholders to combat energy theft. He pointed out that the repercussions of theft extend beyond distribution companies (Discos) to affect the entire industry, including power generation and transmission.
“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. Whatever happens to the Distribution Companies (Discos) affects the entire NESI,” he added.
To address the issue of energy theft, Ikeja Electric has implemented several strategies, including the establishment of a whistleblowing platform. This platform allows customers and well-meaning Nigerians to report incidents of energy theft anonymously. Managed independently of the business, the whistleblowing platform ensures the confidentiality of the whistleblowers’ identities.
To incentivize whistleblowing, IE offers rewards to those who report illegal activities and energy theft. Verified reports on Non-Maximum Demand (Residential & SMEs) offenders can earn whistleblowers up to 10% of the reconnection fee paid by the offender. For Maximum Demand (Commercial & Industrial) offenders, whistleblowers can receive up to 5% of the reconnection fees.
Energy theft is classified as a criminal offense under the Electricity Act, with severe penalties for offenders. The act of interfering with meters or the works of licensees carries a sentence of 3 years imprisonment. Okotie stressed that Ikeja Electric is empowered by law to prosecute individuals and companies involved in 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 explained.
The company’s recent actions reflect a broader commitment to enforcing the full weight of the law against energy theft. By prosecuting offenders, Ikeja Electric aims to deter others from engaging in similar activities and ensure the sustainability of the electricity supply industry.
“Ikeja Electric can, under the law, prosecute people and companies for the criminal offense of energy theft. Energy theft is a criminal offense under the Electricity Act, attracting a sentence between 6 months to 3 years imprisonment. Interfering with meters or the works of licensees carries a sentence of 3 years imprisonment,” Okotie reiterated.
Through its initiatives, Ikeja Electric seeks to foster a culture of compliance and cooperation among its customers. The company’s Stakeholders Forum serves as an important platform for educating customers about the implications of energy theft and the benefits of adherence to lawful practices.
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