May 26, 2024

Eko Disco records almost N400bn shortfall to vandalism, cable theft, as MDAs debt hit N42bn

Oredola Adeola
The Eko Electricity Distribution Company (EKEDC) has revealed that it is facing significant challenges as a result of billions of Naira lost to vandalism of assets and electrical installations and cable theft, 18% of commercial and collection losses, as well as a total of N42 billion outstanding debt owed by Ministries, Agencies, and Departments (MDAs), thereby amounting to overall shortfall of about N400 billion as of date.

 

Mrs Rhakiyta Momoh, Chief Commercial Officer of Eko Electricity Distribution Company (EKEDC), who represented Dr. Tinuade Sanda, Managing Director/Chief Executive Officer EKEDC, expressed these concerns during a customer engagement forum in the Mushin Business District.

 

 

According to Momoh, EKEDC has accounted for 18% of commercial and collection losses, out of which Ministries, Agencies, and Departments (MDAs) owe a total of N42 billion to the DisCo as of date.

 

 

She appealed to customers in the Mushin District to refrain from energy theft and vandalism, which she estimated to have cost the DisCo a whopping N4 billion. 

 

 

Mrs Momoh also stated that EKEDC has a monthly collection rate of 82%, leaving about 18% to collection. She noted that the MDAs owe EKEDC almost N42 billion.

 

 

The forum was organized to engage with customers in the Mushin/Ojuelegba District to increase engagement and foster a better relationship with the DisCo.

 

Regarding the hike in electricity tariff, Mrs. Momoh explained that EKEDC has always had minor reviews and has yet to have a major review. She attested that the current electricity tariff is not cost-reflective enough to cover both operational and capital expenditures.

 

 

She noted that until a proper electricity tariff is put in place, the business may not reach its full potential. The average electricity tariff in EKEDC is N59.5 per kilowatt, and the increase has always been in the rate of N2 per kilowatt, which is overall not covering all the basic expenses.

 

 

Mrs Momoh also spoke about the delay in the mass distribution of prepaid meters under the Metering Asset Providers (MAP) scheme. She noted that customers often provide wrong details, which results in the DisCos’ inability to match customers’ biodata with the appropriate timing for the delivery of prepaid meters to their respective homes.

 

She noted that there are currently a total of 405,000 prepaid meter customers in EKEDC out of the over 600,000 electricity customers under the network.

 

She said, “Over 154,000 customers are yet to be fully metered, and efforts are ongoing to ensure that prepaid meters are delivered to those who have paid for them.”

 

The leadership of the CDAs and residents at the forum urged Eko Disco to improve its service delivery, address maintenance issues, and provide relief transformers to meet the needs of the community.

 

 Hon Afeez Lawal, Chairman of the Consultative Forum for EKEDC Musin district, commended the management of Eko Disco for their recent improvement in service delivery. He therefore urged the DisCo to step up its performance.  

He acknowledged that human wants are numerous and the means of satisfying them is minimal, so the forum aimed to reach an agreement and resolve issues amicably

Lawal also expressed concern about the rate of vandalism and energy theft in the district. To address this, a committee and security task force has been established within each Community Development Association (CDA) to monitor the distribution cables and transformers.

The community members have been sensitized about the theft, and anyone caught will face legal consequences. It was recognized that customers are greatly affected when the Disco’s facilities are damaged, and efforts will be made to minimize this through improved maintenance.

Olatunji Adeboyejo, the Governor of Bolaji Awoyo CDA in Mushin District, highlighted the issue of poorly maintained fuse and components of the distribution transformers. 

 

He appealed to the management of EKEDC to enhance equipment maintenance to ensure maximum customer satisfaction and equitable distribution of power supply in the district.

 

Chief Osanwede from Lawanson CDA in Mushin District commended the District Manager for improved performance but requested relief transformers for the district.
 He mentioned that most of the transformers in the area were procured by the community and no relief transformers have been provided for years.
He also called for the replacement of wooden poles and the employment of more engineers to address the growing need for constant maintenance in the district