Nigeria may be losing about 40 per cent of electricity generation to theft even as the metering of over eight million consumers remained a challenge.

In December last year, about N36.2 billion was lost out of the N134.53 billion worth of electricity billed by the distribution companies, translating to revenue collection of N98.36 billion.

Amidst the liquidity crisis in the sector and the push towards a cost-reflective tariff, Group Managing Director, Sahara Power Group, Kola Adesina said every day about 40 per cent of energy is lost to theft.

Speaking at the just concluded Nigerian Electricity Regulatory Commission (NERC) workshop organised for judges, Adesina said people who have invested in the sector are counting losses even as the judiciary is slow in delivering a judgment that should reduce the losses.

“So, you have an installed capacity, you have invested heavily anticipating that revenue will come along a particular stream but you have people in the system that will take the electricity and not pay,”

“Unfortunately, when you take them to court it takes forever for these cases to be determined. This is an area I want to appeal to judges about. I am glad this is one of the reasons we are here; if you step back from the emotion of the service that you are receiving you will understand why you are receiving the service in that manner; that it is not because investors are incompetent or are not putting the money but it is because the Nigerian behaviour and the value system is eroding everything commonsensical and universal within the power space. I doubt if we will see light at the end of the tunnel if we continue with the current practice,” Adesina said.Principal Managing Partner, George Etomi & Partners, George Etomi, noted however that there is a need to meter consumers.

“Metering is a big issue in the power sector as one of the biggest irritations is estimated billing, not that it is illegal but if there is a metering gap, there is bound to be estimation. Etomi insisted that the idea of estimated billing is unacceptable.

“We are calling for reforms which the Electricity Act will cater to; this is the reason we are here, and we seek the cooperation of the judiciary to resolve these things. Seminars like this work for me and we should see ourselves as co-travellers in the judiciary system while we continue to remind ourselves of the powers that we have to make sure that justice is done,” he noted.

NERC Commissioner, Legal, Licencing and Compliance, Dafe Akpeneye, said the NERC was not asking the judiciary to deliver judgment in favour of the sector but to ensure a competent bench that understands the sector.

According to him, the judiciary needs capacity payment, availability payment, multi-year tariff order, why tariffs are usually reviewed and other technical issues in the industry.

“That is what we are asking for and we believe that with engagements like this, we will continue to build our capacity. We only have one country and we will do our very best to make this one country that we have, the country of dreams,” he stated.  Also speaking at the event, a legal expert, Prof. Paul Idornigie stressed the need to prioritize corporate governance in the sector.

“We talk about corporate governance as a network and in the power sector, it is quite comprehensive especially as we must deal with generation, transmission and distribution. The new Electricity Act has added system operation and enforcement of consumer rights.

“There is no way this can be done without the judiciary partaking in adjudicating roles. So, the judiciary as we all know, is responsible for interpreting, adjudicating and making pronouncements on legislations,” he said.

Professor Yusuf Ali, who also spoke at the workshop said there must be specialized training for adjudicators; adding that such training is very important.

According to him, NERC should set up bodies within its system using available resources and personnel to deal with issues that need to be resolved between parties.

“NERC should deploy more alternative dispute resolution mechanisms; you can deploy technology to tackle issues of power theft and vandalism.  Stakeholder engagement and public consultation are also very important, there should be mechanisms for review of contracts from time to time; legislative alignment is very important and there should be regular capacity building not only for judges but for GenCos, DisCos and other stakeholders.

“Laws, just like human beings, cannot foresee everything in the future and so when the courts are called upon, and this is where your lordships come in, to interpret laws, it is good to be able to understand and appreciate the legislations and the regulations in the Nigerian Electricity Supply Industry (NESI),” he said.