Ikeja DisCo Condemns Rising Energy Theft Amid Tariff Increase

The Ikeja Electricity Distribution Company (Ikeja DisCo) has expressed serious concerns over the surge in energy theft following the Band A tariff increase implemented three months ago. The company warned that offenders caught stealing electricity will face immediate prosecution, moving away from merely imposing penalties for revenue loss.

This announcement was made during the company’s July Stakeholders Forum. In a statement released on Saturday, Ikeja Electric’s Head of Corporate Communication, Kingsley Okotie, highlighted the alarming rise in energy theft, particularly after the tariff review on Band A feeders. He emphasized the critical impact of this theft on the entire electricity value chain.

“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.

Okotie stressed the importance of a united front against energy theft for the survival and stability of the Nigerian Electricity Supply Industry. He pointed out that whatever affects power distribution companies has a ripple effect on the entire industry.

To combat this issue, Ikeja DisCo has implemented a whistleblowing platform, allowing customers to report incidents of theft anonymously. This platform is managed independently to ensure the confidentiality of whistleblowers.

“To reinforce the company’s commitment, IE is incentivising whistleblowing by rewarding those who report any illegality and theft of electricity. Persons who submit verified reports on Non-Maximum Demand (Residential & SMEs) offenders will get up to 10 percent of the reconnection fee paid by the offender, while for Maximum Demand (commercial & industrial) offenders, whistle-blowers will get up to 5 percent of the reconnection fees paid by the offender,” Okotie explained.

He further noted that energy theft is a criminal offense under the Electricity Act, attracting sentences of six months to three years imprisonment. Interfering with meters or the works of licensees carries a sentence of three years imprisonment. Ikeja Electric has the legal authority to prosecute individuals and companies for such offenses.

According to regulations by the Nigerian Electricity Regulatory Commission (NERC), unauthorized access, meter tampering, and bypassing meters allow DisCos to disconnect customers. Reconnection is only possible after offenders pay for the loss of revenue, back-bills established by the DisCo, reconnection costs, and administrative charges.