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DistributionNewsPowerSabotage

EKEDC intensifies measures to cut billions in Naira losses incurred due to vandalism, theft

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Last updated: July 20, 2024 9:59 am
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… wields big stick against internal collaborators

… vows strict prosecution for offenders in Orile, Coker, Aguda and beyond

 

Oredola Adeola

The Eko Electricity Distribution Company (EKEDC) has taken a strong stance against energy theft and vandalism within its network, dismissing numerous staff members found to be involved in illegal activities and collaborating with customers to tamper with electrical equipment.

It has also threatened to prosecute residents caught engaging in energy theft and illegal connections, as part of its efforts to tackle over N100 billion debt attributed to Aggregate Technical, Commercial, and Collection (ATC&C) losses largely caused by vandalism and energy theft.

Mrs. Rekhiat Momoh, EKEDC Acting Chief Executive Officer, announced this at the 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.

According to Mrs Momoh, who was represented at the engagement session by Mrs Catherine Ezeafulukwe, Chief Customer Experience Officer, energy theft and vandalism have been persistent issues plaguing the servicing delivery to all our network especially under the Orile District, causing significant financial losses and posing safety risks.

The Acting Chief Executive Officer of EKEDC explained that the regular engagement with the customers in Orile District served as means collaborating with them, to enlighten them, take their complaints, and then help the DisCo in providing more efficient services to the customers and improve the quality of lives, which is one of the company’s mottos.

Estimating the number of losses as a result of vandalism and energy theft, Momoh mentioned, “It runs into billions of Naira, and that is why we are taking the campaign against energy theft and vandalism seriously because it is hitting our bottom line and affecting our customers.

She said, “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.

Commenting on the company’s zero-tolerance policy for any staff involved in aiding and abetting energy theft the Acting MD emphasized, “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.

She further explained that some of the worst offenders are ex-staff or fake staff, advising customers to always request an identity card when these individuals come to their premises.

She said, “If any of our officials are unprofessional, kindly bring it to our attention, and we will address it. We have whistleblower measures in place to curb these issues.”

Speaking about the number of metered and unmetered customers, Momoh said, “EKEDC has metered over 70 percent of customers. We continue to accommodate new customers daily, including those with old or faulty meters. We are working to ensure they are metered.

“The company is committed to metering customers and ending estimated billing within our network and franchise area. We have a five-year plan that includes replacing outdated and faulty meters.

“We aim to eliminate estimated billing with an aggressive push towards metering all our customers and managing energy efficiently to ensure that most of our customers are metered, reducing free riders’ access to electricity.”

“We encourage our customers to apply for meters as the process is now seamless. Metering within EKEDC’s network has been deregulated, allowing customers to choose vendors for installing prepaid meters. When customers apply, they have options to pick vendors of their choice,” she stated.

Regarding customers procuring electrical equipment, the Acting MD emphasised that it is cheaper to buy a transformer than to energize it.

According to her, it is convenient to donate 10 transformers, yes, we can, but energizing a transformer involves many aspects, including safety and infrastructure approval to connect to the grid.

She said, “This is why it is difficult to energize customer-purchased transformers. It is not your responsibility to buy or donate a transformer, as spelled out in NAEC regulations. The government has emphasized this. Customers wanting to buy a transformer should first reach out to us to plan effectively.

“We need to register with NEMSA certification and fulfill other requirements before procuring a transformer.”

The Acting MD/CEO of EKEDC while addressing concerns regarding the presence of wooden poles within the company’s network, clarified that the DisCo has replaced all wooden poles within their system, emphasizing that the remaining wooden poles are those erected by communities to prevent sagging electrical cables.

Mrs. Momoh stated, “It is no longer in our policy to have wooden poles within our network; it is not to our advantage, and it is not in the interest of our customers.”

She has therefore assured that EKEDC is committed to replacing any remaining wooden poles immediately, noting that they are “99 percent complete” in the total removal of wooden poles from their infrastructure.

Mr. Samuel Edoho, EKEDC General Manager Commercial (Revenue Cycle), assured that the DisCo will resolve the dispute over estimated billing, ensuring a satisfactory outcome for all.

He mentioned that every distribution transformer (DT) is metered to track consumption within communities.

Edoho emphasised the need for collaboration with the Community Development Association (CDA) to identify significant energy users, including welders and others who temporarily set up facilities, consume energy, and leave, burdening the community with the cost.

He urged the community to be vigilant about those constructing high-rise buildings and advised that such customers should not take shortcuts in accessing energy.

“They need to apply for a proper connection for their facility. If, after due diligence, it is found that the existing infrastructure cannot support the building, EKEDC will not connect the facility to a transformer. Instead, the building owner made a new arrangement with us to provide a new transformer to avoid disrupting the substation,” he said.

Regarding billing, Edoho stated that EKEDC is compelled to adhere to the methodology provided for estimating customers’ consumption based on the data gathered.

Sanni Aderele Ogidan, Chairman of the Community Development Committee, Coker Aguda LCDA, speaking on behalf of the customers stated that most of the complaints stem from the need to replace wire conductors as well the collaboration to address energy theft.

He said, “The CDC must ensure the welfare and improved status of our community members. I blame the PRO of the CDCs for poor representation of the over 36 CDAs, under the CDC at engagement meetings.

“The unfortunate reality of energy theft in the Coker Aguda axis is that some DisCo officials aid in vandalism and energy theft. We have agreed to call an emergency CDC executive meeting tomorrow with representatives from Orile, Coker, and Aguda.

“We will collaborate with the Council Engineers and the Police to arrest and prosecute individuals vandalizing electrical equipment in the community,” Ogidan said.

The first Vice Chairman of Onibuore CDA from Ikate, said, “This is the first meeting where both the DisCo and the customers have been genuinely sincere with each other. If every house can be metered, we will no longer be talking about energy theft.

“With sincerity of purpose, things will proceed as they should. Without this, we will continue to have several meetings and waste time repeatedly. DisCo should provide meters and ensure customers pay their bills.

“EKEDC is trying, but if they can find a way to raise funds to meter all their customers, it will address issues of ATC, energy theft, and liquidity, and everyone will benefit. If houses are metered, people will pay,” he said.

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