Ikeja Electric Plc (IE) has announced a tougher stance on energy theft. The leading electricity distribution company declared that offenders caught stealing electricity will now face immediate legal action, moving beyond the previous practice of only imposing loss of revenue (LOR) penalties.
This announcement came during IE’s July Stakeholders Forum, a monthly meeting designed to inform customers about the company’s activities and initiatives for improved service delivery.
Kingsley Okotie, IE’s Head of Corporate Communication, according to a statement, expressed concern over the recent surge in energy theft, particularly in the three months following the implementation of a revised tariff on Band A feeders. Okotie emphasised that unchecked theft threatens the survival of both the company and the entire electricity value chain.
“The theft is massive, and the company cannot guarantee meeting customer expectations if this ugly trend continues,” Okotie stated. He added that some perpetrators mistakenly believe there are no consequences if they haven’t been caught, a notion the company aims to dispel.
Okotie stated that 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. He emphasised that whatever happens to the Distribution Companies (Discos) affects the entire NESI.
Speaking on strategies to curb theft, the company’s spokesman mentioned that the whistleblowing platform is a very effective way for customers and well-meaning Nigerians to report incidents anonymously. He added that the platform is managed independently of the business, ensuring customers identity remain anonymous and highly confidential.
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% of the reconnection fee paid by the offender while for, Maximum Demand (Commercial & Industrial) offenders, whistleblowers will get up to 5% of the reconnection fees paid by the offender.
He further explained that energy theft is a criminal offence under the Electricity Act, attracting a sentence between of six months to three years imprisonment. Interfering with meters or the works of licensees carries a sentence of three years imprisonment. Ikeja Electric can, under the law, prosecute people and companies for the criminal offence of energy theft.
In line with regulations stipulated by the Nigerian Electricity Regulatory Commission (NERC), the NERC Order on unauthorised 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.
The IE spokesperson urged customers to take advantage of the new whistleblowing platform to report energy theft. The whistleblowing channels include:
- Toll-free Hotlines: 0800-TIP-OFFS (0800 847 6337)
- Web Portal: www.ikejaelectric.com/whistleblowing
- Email: expressyourself@ikejaelectric.com
- Mobile App: Download the Deloitte Tip-offs Anonymous App on Android or iOS devices.