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Rising electricity theft cases threaten N150bn meter market

By BusinessNews Staff on October 25, 2014

The potential of Nigeria’s electricity metering market is currently worth N150bn, but the rising cases of electricity theft among consumers in the corporate and household levels is undermining this prospect.

Local meter manufacturers and distributors, power distribution companies, among others, have continued to raise the alarm over this menace, as the same has so far resulted in huge revenue loss. This, therefore, implies that a large quantum of power consumed is not paid for.

Also, the huge metering deficit which has characterised the nation’s electricity market may not provide the expected market opportunities as some people have resorted to electricity theft, which can defeat the adoption of the meters, especially prepaid ones.

Theft of electricity is the criminal practice of stealing electric power. It is a crime punishable by heavy fines and, in some cases, incarceration.

The most basic method of stealing electricity is a direct wire-connection to a main power route passing by a house or shop so that electricity can flow to the consumer without crossing the electric meter installed by a government agency that is responsible for providing electrical services to customers.

Other methods may include opening the meter itself, without damaging its seals and reversing the dials, a complicated procedure that requires expert skill.

To this end, Sir Collins Onyeama, the Managing Director, Techno Gas and Power, manufacturers of prepaid meters in Nigeria, told our correspondent that electricity theft remained a major challenge for meter manufacturers in the country, the power distribution companies and the power sector as a whole.

According to him, the menace results in a huge loss for operators in the sector, as operators end up not getting value for services rendered.

He stressed that people benefitting from such practices can never appreciate the importance of prepaid meters.

“The Nigerian meter market is worth over N150bn, and rising cases of power theft will only undermine this,” he added.

The Managing Director/Chief Executive Officer, Ikeja Electricity Distribution Company, Mr. Abiodun Ajifowobaje, also admitted the huge challenges posed by this unfortunate practice by some Nigerians.

He said that about 136,000 customers within the company had been installed with prepaid meters to date, while about 36,000 were found to have been by-passing meter which posed a serious challenge to the company.

The Ibadan Electricity Distribution Company recently raised the alarm over the rate at which some customers under its network illegally used electricity and failed to pay for the utility afterwards.

The company also admitted that there were now increasing cases of consumers who were bypassing approved cable route to “steal” electricity.

The IBEDC Managing Director, Mr. Fortunato Leynes, also said meters were also being tampered with, coupled with diversion of wires from the meters and running of the same through the ceilings, thereby bypassing electric meters.

“These acts are offences and are punishable by law. We also know that there are several rampant direct connections, which make people to enjoy electricity without paying a single kobo,” he explained.

Meanwhile, the Nigerian Electricity Regulatory Commission has said it will not allow the importation of electricity meters into the country as long as local manufacturers have the capacity to meet demand.

[Punch]

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