Revenue assurance as guarantee for stable power supply
The Management of Kaduna Electric is deeply concerned about recent complaints about inadequate power supply in parts of our franchise states. As a business that exists to provide an important utility service to the public, such complaints resonate deeply with us and we do not rest until we do our utmost in addressing such public […]
The Management of Kaduna Electric is deeply concerned about recent complaints about inadequate power supply in parts of our franchise states. As a business that exists to provide an important utility service to the public, such complaints resonate deeply with us and we do not rest until we do our utmost in addressing such public concerns. However, we wish to once again draw attention of the public to the enormous challenges we face as a company which often makes it difficult for us to deliver the efficient service that is expected of us.
Since we took over the company in 2014, we have made huge investments in revamping the dilapidated network infrastructure we inherited and have also invested heavily in ICT infrastructure to make our operations and access to our service a much easier to customers. The challenge of non-payment of bills, energy theft, meter bypass and tampering and vandalism of our equipment has continued to undermine our efforts. Despite these, we had resolved to provide adequate supply to our customers as attested to by the Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola, who listed Kebbi, one of our franchise states, among states that enjoy 24-hour power supply in the country.
The sad reality though is that customers have not reciprocated in the same measure by paying their bills promptly. Kebbi state is unfortunately one of the states where we record high losses. Since 2016, Kebbi has been getting incremental power supply of up to 24 hours a day without incremental revenue. With a billing of over N900 million per month due to increase in power supply, our collections in the state is just between 15% to 20% which is about N200 million. Our average monthly billing in Kaduna state stands at about N2.2 billion but our monthly collection only averages N800 million. In Sokoto state our average collection is about N200 million against a monthly billing of about N500 million. The situation is not any different in Zamfara state where we bill about N400 million monthly but are only able to recover N100 million per month.
This consistent loss of revenue is not sustainable! The reasons for this huge loss as mentioned earlier is not unconnected to rampant meter bypass, other forms of energy theft, nonpayment of bills and the attitude of illegal agents with collaboration of a few of our unscrupulous staff. While we are addressing our internal issues we call on our customers to report all form of extortion and harassment that hinder customers from getting service and payment of their bills. In addition, we advise all our customers to desist from encouraging fraudulent activities, Meter bypass and all forms of energy theft. It is very clear that supply will drastically reduce if prompt payment of bills to either banks or cash offices is not made and meter bypass and other forms of power theft not stopped.
We urge our esteemed customers to note that it is a criminal offense to tamper with electrical equipment. A huge penalty including jail time is prescribed for offenders. In compliance with the NERC regulation, we shall soon be unveiling the Meter Asset Provider program where meter vendors will be reaching out to customers for meter supply and installations. Kaduna Electric is a privately owned company which purchases electricity and sells to its customers. We need the support of all stakeholders especially our esteemed customers to enable us continue the supply of power 24/7.
Abdulazeez Abdullahi, Head, Corporate Communication, Kaduna Electric