Power theft costs grid 180MW, NISO raises alarm

The Nigerian Independent System Operator has raised the alarm over what it described as massive electricity theft on the Ikorodu-Sagamu transmission corridor spanning Lagos and Ogun states, saying about 180 megawatts of power is being lost to energy theft perpetrated by large customers.

The Managing Director of NISO, Abdu Mohammed Bello, disclosed this during a stakeholders’ meeting held recently in Lagos with distribution companies, generation companies, eligible customers, and large customers connected to the Ikorodu-Sagamu 132kV double-circuit transmission lines.

Bello said investigations by the system operator uncovered widespread electricity theft and meter manipulation along the transmission corridor, with some large customers connected to the Ikeja Electricity Distribution Company and the Ibadan Electricity Distribution Company implicated.

According to him, the level of losses recorded on the line was alarming and had become a major threat to grid stability and market revenues.

“We discovered that the Ikorodu-Sagamu 132kV double-circuit line has a lot of very serious theft issues. The magnitude of the thefts is unimaginable. The theft along that line is close to 180MW. So you can imagine losing 180MW, which is almost equivalent to the daily allocation of Jos Electricity Distribution Company,” Bello said.

He explained that the discovery prompted consultations with the Nigerian Electricity Regulatory Commission, which subsequently backed NISO’s move to tackle the menace.

“So we decided to carry out investigations, and based on our findings, we consulted the regulator of the power sector, the Nigerian Electricity Regulatory Commission, and we made a presentation to them. They saw the magnitude of it and now supported us that we should take further steps towards addressing this serious menace in the system,” he stated.

Bello noted that the Ikorodu-Sagamu corridor was being used as a pilot scheme for a broader crackdown on electricity theft across the national grid.

“We have taken the Ikorodu-Sagamu line as a pilot project because it’s not only that corridor that is having that kind of challenge. Other corridors, too, will be dealt with as soon as we are able to deal with this. We have a standard model framework that we’re going to use to address these steps,” he added.

To curb the losses, Bello said NISO had issued fresh directives to GenCos, DisCos, and eligible customers. According to him, the directives include strict compliance with minimum off-take requirements, meter classification rules, and mandatory recalibration of metering instruments by the Transmission Company of Nigeria.

“We have designed a control measure we’re going to put in place to stop that leakage in that transmission corridor. This will support our operational management of the national grid and make more power available to Nigerians and more revenue available for the electricity market.

“The operators should ensure minimum off-take compliance for eligible customers and also metering classification in line with the provisions of the Eligible Customer Regulations, 2024, and also in line with the metering code.

“For the eligible customers, NISO directed an immediate recalibration of the metering instrument, the current transformers, and the voltage transformers, which shall be done by the Transmission Company of Nigeria,” he stated.

The NISO boss also ordered the compulsory installation of check meters and dedicated current and voltage transformers at all interface points.

“That is a provision of the metering code, and in most instances, you will see that these check meters are not there. So it’s a mandatory directive we have given them to make sure that the relevant parties install the check meters at each and every interface point. It also directed full compliance with metering code requirements, especially in the area of meters and associated metering installation like CTs and VTs,” he said.

Bello warned that erring customers would face energy reconstruction, back-billing, financial penalties, and possible disconnection from the national grid.

“If we discover a theft by any customer, we will make sure that we reconstruct and back-bill for a period of time so that the customer will pay for the losses we incurred over that period of time. And then, we will also impose financial penalties on such erring customers. For persistent offenders, we shall disconnect them from the grid or suspend them from the market, and they shall undergo further regulatory sanctions as determined by the regulators,” he said.

He added that NISO would immediately set up a joint task force comprising the system operator, TCN, and security agencies to monitor the corridor and enforce compliance.

The NISO managing director, however, assured Nigerians that efforts were ongoing to improve power supply reliability through new technologies and grid management systems.

“We’re improving in the sense that we are deploying technology, systems, and processes in place that will ensure lasting and enduring sustainable improvement going forward,” Bello stated.