The attention of Kaduna State Power Supply Company (KAPSCO) has been drawn to a statement credited to Kaduna Electricity Distribution Company (KAEDCO or Kaduna Electric) over disconnection of Kaduna State Government House and other State governments due to unpaid bills. As an agency of government responsible for verifications of all public building energy consumption in the State, we feel duty bound to correct the erroneous impression created by Kaduna Electric.
We receive monthly electricity bills from Kaduna Electric, verify same and pay through Ministry of Finance including that of Kaduna State Government House. However, the current claim of N2.9 billion by the Kaduna Electric against the Kaduna State Government (KDSG) is unfounded.
To put the record straight, the following facts are of paramount importance:
1. The administration of His Excellency, Sen. Uba Sani, through KAPSCO, has engaged the Distribution Company severally on the so-called inherited debt from the previous administration.
Further, the Governor has approved payments for all inherited debt due to Kaduna Electric from year 2015 – March 2023. A total of Ten billion, Two hundred and Sixty Four Million, Six Hundred and Seventy-Nine Thousand, Two Hundred and Thirty-Three-Naira, Eighty-Seven Kobo (N10,264,679,233.87) was billed by the Disco for the period between January 2015 – March 2023; while KAPSCO has verified Seven billion, five hundred and Seven Million, Nine Hundred and Fifty-Eght Thousand, Four Hundred and Sixty-Three Naira, Seventy Nine Kobo (N 7, 507, 958, 463.79). In view of the above, a total sum of Seven Billion, Three Hundred and Fifteen Million, Three Hundred and Sixty-Six Thousand, Four Hundred- and Seventy-Eight-Naira, Seventy-Seven Kobo (N7,315,366,478.77) was paid to Kaduna Electric by the KDSG with receipt acknowledged.
2. Based on Capping of Estimated Billing Regulations for unmetered electricity customers Order (NERC/224/011) and verification of centralized Electricity Bills by KAPSCO, verification was undertaken from January 2015 to date. The KDSG has saved a difference of about Two Billion, Eight Hundred and Forty-Eight Million, Six Hundred and Seventy-Two Thousand, Seven Hundred- and Seventy, Eight Kobo (N2,848,672,770.08) naira due to none compliance to NERCs Capping Order and overbilling by Kaduna Electric. The KDSG’s consumption from 2015 to date has, therefore, exceeded the allowable limit; hence the metering of all affected facilities from Kaduna Electric as stipulated by Consumer Protection Regulation (2023) of the Nigerian Electricity Regulatory Commission (NERC) was requested by KAPSCO and not granted.
3. The sum of Two Hundred and Fifty-Six Million, Nine Hundred and Twenty Thousand, Nine Hundred and Sixty Three Naira, Eighty Eight kobo (N256, 920,963.88) was paid on the 9th day of May, 2024 as final settlement between KDSG and Kaduna Electric for all MDA’s and Kaduna State Water Cooperation (KADSWAC) for the months of September – December 2023. It is pertinent to note that KADSWAC is a self- autonomous agency of the KDSG entitled to its rights and responsible to its obligations.
4. However, it is noted that the sum of Three Hundred and Seventy-Two Million, Eight Hundred and Sixty-Four Thousand, One Hundred and Four Naira (N372, 864.104.00) was presented by Kaduna Electric as the electricity bill for all MDA’s under KDSG for the months of January to May 2024. Accordingly, out of these amount, Three Hundred and Fifty-Three Million, Seven Hundred and Fourteen Thousand, Nine Hundred and Thirty-Three Naira (N353, 714,933.00) was verified and same was duly approved by the His Excellency, Governor for payment. Additionally, the sum of Six Hundred and Ninety-Six Million, Seven Hundred and Fifteen Thousand, Seventy-One Naira Sixty-Six Kobo (N696, 715, 71.66) was also presented by Kaduna Electric as the electricity bill to KADSWAC that is a self-autonomous agency with all administrative powers.
5. It is equally important to note that the KDSG is a shareholder with about 2.5% of investment in Kaduna Electricity company. Based on the foregoing, and to ensure a cordial working relationship between the KDSG and Kaduna Electric, the government has invested in providing over Five Hundred (500) Transformers and significant amount of electricity infrastructural development in extension of electricity network to unserved and underserved communities across the State. This is to encourage and help Kaduna Electric reduce its 59.96% Aggregate Technical Commercial and Collection (ATC&C) losses as at 2024/Q1 and further support in reversing its perpetual historical poor performance that had led to successive changes in Board and Management of the company.
6. The KDSG in its effort, to ensure the survival of Kaduna Electric in the Electricity Market, has through its budgetary provision, earmarked over N2 billion Naira for exploring options in NERCs investment in network regulation (2015) in partnership with the Disco and was communicated to the company through KAPSCO. This was done for interest of the citizens of Kaduna State.
7. It is disheartening to note that the unfortunate action of Kaduna Electric in disconnecting Yusuf Dantsoho hospital from power supply is in direct contravention of the provisions of Chapter II, Section 25 Sub-Section (2) of the NERC’s Customer Protection Regulation (NERC – R – 001 – 2023) which prohibits disconnection of facilities with life support machines.
8. In the light of the above facts and for the collective interest of the citizens of Kaduna State, the KDSG hereby invites Kaduna Electric for a robust engagement with a view to reconcile all the pending issues to ensure the overall progress of Nigerian Electricity Supply Industry (NESI).
Engr. Idris Aminu Idris, FNSE
Managing Director
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