DisCos seek stiffer legislative actions against electricity theft, meter bypass

THE 11 Electricity Distribution Companies (DisCos)has called for stiffer legislative actions against energy theft and meter bypassing so as to reduce the market shortfall.

It said over 40 per cent is lost on monthly basis, to the menace adding that this has continued to contribute to the financial crisis in the value chain.

The DisCos’ umbrella body, Association of Nigerian Electricity Distributors (ANED) made the call in a statement issued by the Director of Advocacy and Research, Barrister Sunday Oduntan in Abuja at the weekend.

It explained that provision of meters alone contribute to an estimated 30 per cent reduction of their Collection Losses adding that: “Adequate CAPEX & OPEX provisions should be made under the electricity tariff, to ensure comprehensive metering, and legislative effort should be applied to criminalising energy theft and meter bypass and creating electricity special/mobile courts.

This would assist in catalysing the desired large scale metering within the sector.”

On the bill to criminalise estimated billings, it disclosed that the DisCos are making huge investments in providing meters for their customers and cutting down estimations.

The DisCos noted that the proposed amendment to the Electric Power Sector Reform Act (EPSRA) 2005 by criminalising estimated billing will conflict with the Share Sale Agreement (SSA), Performance Agreement and the EPSRA.

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“It holds the possibility of a “Change of Law” determination that could, potentially, result in the federal government paying out an amount in excess of 5 billion dollars, in accordance with the related provision in the Performance Agreement.

“New customers may not be connected to the grid until the availability of meters, therefore denying them of service.

Indeed, there would be a wholesale disconnection of all the customers currently on estimated billing,” they noted.