N2.9bn debt claim against government house unfounded, Kaduna power firm tells DisCo

The Kaduna Power Supply Company (KAPSCO) says the allegation that the state government owes N2.9 billion to the electricity distribution company (KAEDCO) is “unfounded”.

Aminu Idris, managing director of KAPSCO, spoke on the dispute in a statement on Saturday.

On August 2, the DisCo disconnected the government house and other state facilities over a “N2.9 billion debt”.

The disconnection came hours after the Kaduna State Internal Revenue Service (KADIRS) sealed KAEDCO’s office over a “N600 million unpaid tax”.

KAEDCO said the move was a “last resort”, adding that the disconnection notice was issued on July 21 and received by the governor’s office on July 22 – after “extensive efforts to resolve the issue through consultations and reconciliations” failed.

However, reacting to the development, the KAPSCO said the actions by the DisCo were disheartening and needed to be reconciled.

“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,” the statement reads.

“We receive monthly electricity bills from Kaduna Electric, verify same and pay through the Ministry of Finance including that of Kaduna State Government House.

“However, the current claim of N2.9 billion by Kaduna Electric against the Kaduna State Government is unfounded.

“The administration of His Excellency, Sen. Uba Sani, through KAPSCO, has engaged the Distribution Company severally on the so-called inherited debt from the former administration. Further, the Governor has approved payments of all inherited debt due to Kaduna Electric from the year 2015 to March 2023.

“A total of N10,264,679,233.87 was billed by the Disco for the period between January 2015 – March 2023; while KAPSCO has verified N 7, 507, 958, 463.79.

“In view of the above, a total sum of N7,315,366,478.77 was paid to Kaduna Electric by the Kaduna State (KDSG) with receipt acknowledged.

“The KDSG has saved a difference of about N2,848,672,770.08 due to non-compliance to Nigerian Electricity Regulatory Commission (NERC) 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 of the NERC was requested by KAPSCO and was not granted.”

‘GOVERNMENT PAID N256M FOR ALL MDAS AS FINAL PAYMENTS IN 2023’

KAPSCO further said the sum of N256.92 million was paid on May 9 as a final settlement between KDSG and Kaduna Electric for all MDA and Kaduna State Water Cooperation (KADSWAC) for September – December 2023.

“However, it is noted that the sum N372, 864.104.00 was presented by Kaduna Electric as the MDA’s electricity bill for the months of January to May 2024,” the agency added.

“Accordingly, out of this amount, N353,714,933.00 was verified and same was duly approved by His Excellency, the Governor for payment. Additionally, the sum of N696, 715, 71.66 was also presented by Kaduna Electric as the electricity bill to KADSWAC, which is a self-autonomous agency with all administrative powers.

“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 500 transformers and a significant amount of electricity infrastructural development in the extension of the 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.”

KAPSCO also highlighted the decision by the DisCo to disconnect Yusuf Dantsoho hospital from power, describing it as “disheartening”.

“This 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,” KAPSCO added.

The state government, therefore, invited KAEDCO to “sit down and reconcile all the pending issues to ensure the success of Nigerian Electricity Supply Industry (NESI)”.