Kaduna State Power Supply Company (KAPSCO) has disputed Kaduna Electricity Distribution Company’s (KAEDCO) claim of a N2.9 billion debt owed by the Kaduna State Government, calling it “unfounded.”
Yesterday, KAEDCO management announced that it had cut off the electricity supply to the Kaduna State Government House and other state government accounts due to unpaid bills.
KAEDCO’s statement partially read, “The outstanding balance for electricity consumed from January 2024 to July 2024 alone amounts to a staggering One Billion, One Hundred and Sixty-Six Million, Eight Hundred and Fifty-Six Thousand, Nine Hundred and Ninety-One Naira, Eighty-Seven Kobo (N1,166,856,991.87).
“This figure, including the historical debt, has left the state government with a huge debt that currently stands at a total of Two Billion Nine Hundred and Fourty-Three Million Sixty Thousand One Hundred and Sixteen Naira Seventy-Seven Kobo (N2,943,060,116.77).”
It is worth noting that KAEDCO disconnected the state government house shortly after the State Internal Revenue Service sealed the Electricity Distribution Company over a tax liability of N600 million.
However, in a statement, KAPSCO revealed that Governor Uba Sani has approved payments of inherited debt due to Kaduna Electric from the year 2015 to March 2023.
KAPSCO said the state government has paid a total of N7,315,366,478.77 to KAEDCO since 2015, contradicting KAEDCO’s claim of outstanding debt.
“A total of N10,264,679,233.87 was billed by the Disco for the period between January 2015 and 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 agency added that N256,920,963.88 was paid on the 9th day of May 2024 as the final settlement between KDSG and Kaduna Electric for all MDAs and Kaduna State Water Cooperation (KADSWAC) for September and December 2023.
“However, it is noted that the sum of N372,864.104.00 was presented by Kaduna Electric as the MDA’s electricity bill for the months of January to May 2024. Accordingly, out of these amounts, N353,714,933.00 was verified and the same was duly approved by 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.”
KAPSCO also stated that the state government has saved N2,848,672,770.08 due to non-compliance with the Nigerian Electricity Regulatory Commission’s (NERC) capping order and overbilling by KAEDCO.
“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 NERC was requested by KAPSCO and was not granted,” KAPSCO added.
It also revealed that the state government has invested in providing over 500 transformers and significant electricity infrastructure development to support KAEDCO in reducing its losses.
“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.
“The KDSG in its effort, to ensure the survival the Kaduna Electric in the Electricity Market, has through its budgetary provision, earmarked over N2 billion Naira for exploring options in NERCs investment regulation in network (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.”
The agency also condemned KAEDCO’s disconnection of Yusuf Dantsoho Hospital from power supply, citing it as a violation of NERC’s Customer Protection Regulation, which prohibits disconnection of facilities with life support machines.
KAPSCO, however, invited KAEDCO to sit down and reconcile all the pending issues to ensure the success of the Nigerian Electricity Supply Industry (NESI).