Electricity Customers have decried massive losses incurred during an extended power outage in Kaduna, Kano and other states in the month of October, 2024.
One of the Companies, R.H plastic which supplies food and oil packaging materials revealed that it suffered losses amounting to ₦60 million during a 10-day blackout and as such it is demanding for compensation and lasting solution to the menace.
Speaking to journalists in Kaduna at the Customers’ Complaint Summit organized by the Nigeria Electricity Regulatory Commission, (NERC), Head of Manufacturing and Maintenance, Mr. Sanjeev Kumar and Vaibhav Lakhole, expressed frustration over the inability to operate due to the prolonged power outage.
The company reported significant setbacks, including raw material wastage, machinery downtime, and production halts as restarting the machines after prolonged stoppages also required substantial electricity, further compounding their losses.
“As a production company, we rely heavily on consistent power to meet the demands of our esteemed customers. Running our machines on generators is unsustainable because of the prohibitive costs. This outage paralyzed our operations and caused substantial financial losses.
“We are among the biggest consumers of Kaduna Electric, using over 500,000 kWh of electricity monthly and paying nearly ₦100 million for it. Yet, this outage caused process wastages, quality defects, and unmet customer demands that have severely dented our business and balance sheet,” they added.
RH Plastics is not only demanding compensation but is also seeking concrete resolutions to prevent a recurrence of such disruptions.
The executives stressed the need for Kaduna Electric to address issues like power fluctuations, low voltage, and unexpected outages, which have significantly impacted the company’s productivity and profitability.
Meanwhile, the Commissioner in charge of Consumer Affairs at the Nigeria Electricity Regulatory Commission (NERC), Aisha Mahmud, said it is unfair for the customers to demand for compensation from the Distribution Company for a fault that is not theirs.
Aisha noted that the Company can only compensate if it is the fault of the utility, where customers could not get supply of hours dedicated to their Band. Meanwhile, she noted that efforts are being ongoing to improve power supply across the country to arrest the epileptic distribution to meet Customers’ power need.
“On the issue of power outage, we have had the issue of grid collapsing recently which most of you are aware and it is basically not the fault of the distribution company. So since it’s not the fault of the distribution company, it will be unfair to ask DISCO to compensate those customers for no fault of theirs.
“But if it is the fault of the utility and maybe our customers are supposed to be on ‘Band A’ and they have refused to supply hours of dedicated hours for these category of customers, then of course they are entitled to compensation.
“You know, in couple of months we see a lot of feeders being downgraded and some being upgraded due to hours of power that they received. But on the issue of grid collapsing, because it’s not the fault of DISCO we cannot ask them to compensate customers because it’s really not within their control.
“In addition to protect the interest of our licensees, we also have to protect the interest of the Nigeria consumers as well and to make sure that they are serve well with the utilities and to make sure that they get value for money and what they paid for because as i said earlier when consumers pay for electricity they are not just paying for electricity but also for services and it’s mandatory that the DISCO deliver these services to the customers.
“So we are here to ensure that our customers are not unduly exploited by the utilities and we will be here for three days and we will be resolving customers complaint on the spot, except for those complaints that are technical in nature and those complaints would require site visit.“ Aisha stressed.
Earlier, the Governor of Kaduna state, Senator Uba Sani harped on the need to improve power supply in the state and beyond to meet the need of residents.
Represented by Engr. Idris Aminu Idris, Managing Director of Kaduna State Power Supply Company, (KAPSCO), the Governor disclosed that Kaduna state government has invested billions of Naira since the commencement of power sector reforms.
He said that, “Reliable power supply is the cornerstone of any modern society. Its inadequacy continues to hinder socio-economic and technological advancement, affecting the livelihoods and well-being of our citizens. Understanding the pivotal role of electricity in economic growth, we have taken deliberate steps to promote ease of doing business in Kaduna State, attracting investors-including Kaduna Electric-who are critical to the development of our economy.
“As a major Customer of Kaduna electric, the state has demonstrated its commitment to fostering this partnership. This includes engaging with the Distribution Company on electricity matters and providing key interventions to enhance power distribution for our residents through the Kaduna State Power Supply Company (KAPSCO) that are tasked with implementing the State’s power mandates.
“These interventions have been substantial such as the purchase and installation of transformers across communities and public facilities. To date the state government has invested billions of Naira since the commencement of power sector reforms. Our administration is also working on adapting electricity policy which will be a vital step towards achieving our vision of active participation in the energy sectors.
“This policy outlines the market
framework, stakeholder roles, and institutional frameworks needed to define and sustain our energy responsibilities. I urge all stakeholders-including the Distribution Company, customers, NERC, and, most importantly, our citizens-to work together in good faith. By doing so, we can ensure the sustainability of power supply and extend distribution networks to underserved communities within Kaduna state and beyond.“
