4 Dangers of Electrical Theft, Illegal Connections And Its Consequences in Nigeria

Mar 28, 2023

Electricity is an essential part of our daily lives, powering our homes, businesses, and industries. Unfortunately, some people choose to bypass legal means and tap into electricity illegally.

Illegal electricity connections, also known as "power theft," refer to the unauthorized tapping of electricity from a power grid, often without the knowledge or approval of electricity providers.

In Nigeria today, power Distribution Companies (DisCos) are faced with several challenges, one of which is electricity theft. This remains one of the major causes of massive revenue losses which increases the debt profile in the Nigerian Electricity Supply Industry (NESI) thereby negatively impacting the nation's economy. Electricity theft negatively affects the entire value chain and remains a scourge to the power sector. While its impact is borne greatly by the DisCos, the overall adverse effect of electricity theft affects the value chain in totality.

In a report by the Director of the power sector advocacy group in Nigeria, eleven (11) electricity distribution companies lost approximately N97,000,000,000.00 (Ninety-seven Billion Naira) to electricity theft in the first three months of 2021. Furthermore, in a report by the Association of Nigerian Electricity Distributors (ANED) over N30,000,000,000.00 (Thirty Billion Naira) of their monthly revenue is lost to cases of electricity theft, meter bypass, vandalism and unpaid electricity bills by consumers. According to the NERC, over 25% of the total energy wheeled by the Transmission Company of Nigeria (TCN) to electricity Distribution Companies (Discos) is lost to theft and technical inefficiency.

Electricity theft also contributes largely to the power supply crisis in Nigeria which has been a longstanding complication in the Nigerian Electricity Supply Industry (NESI).

The electricity that is being generated in the country falls short of the needed capacity to power the whole country. Despite this shortfall, it is unfortunate that the meagre electricity generated is also being stolen by some consumers. While some people may do this because of poverty or to save money, the dangers of illegal electricity connections are numerous and should not be overlooked.

In this blog post, we will explore some examples of the dangers of illegal electrical connections.

The dangers of illegal electrical connections

  • Electrical Accidents and Fatalities: Illegal electricity connections often involve unsafe and substandard materials, as well as inadequate installation and maintenance practices. As a result, electrical accidents and fatalities are common risks. For example, in 2019, a 20-year-old man in the United States died from electrocution after coming into contact with an illegal power line while working on a roof. In another incident, a 300-level accounting student of the University of Lagos, Oluchi Anaekwe, was electrocuted on her way to the hall of residence. The helpless lady had unknowingly stepped on a live wire that was supposed to be buried underneath the ground. These incidents are not isolated and highlight the serious risks of illegal electricity connections.
  • Fire Hazards: Illegal electricity connections can also increase the risk of fire hazards. For instance, overloaded circuits, substandard wires, and electrical sparks can all cause fires that can quickly spread and destroy property, injuring or killing people in the process. In 2018, a fire broke out in a residential area of Brazil due to illegal power connections, causing significant property damage and leaving dozens of families homeless.
  • Power Outages: Illegal electricity connections can overload the power grid and cause power outages, disrupting services and causing inconveniences for businesses and individuals. For example, in 2017, an illegal power connection caused a massive power outage in Dhaka, Bangladesh, affecting millions of people and disrupting transportation and communication systems.
  • Revenue Losses and Increased Tariffs: Illegal electricity connections result in significant revenue losses for electricity providers, leading to increased tariffs and prices for consumers. The Association of Nigerian Electricity Distributors (ANED) report showed that over ₦30,000,000,000 (thirty billion naira) of monthly revenue was lost to electricity theft, vandalism and meter bypass cases. This loss of revenue not only affects the financial viability of power companies but also hinders the ability of power companies to invest in infrastructure and equipment needed to improve power supply to electricity customers.

What the law says

In 2013, the NERC formulated the Electricity theft and other related offences regulations in order to deter electricity theft and the destruction of electricity supply infrastructure. Section 1 (1) of the regulation provides as follows:

  • Any person who willfully and unlawfully –taps, makes or causes to be made any connection with overhead, underground or under water lines or cables, or tampers with a meter, installs or uses a tampered meter, current reversing transformer, shorting or shunting wire, loop connection, receives electricity supply by by-passing a meter, or uses any other device or method which interferes with accurate or proper registration, calibration or metering of electric current or otherwise results in diversion in a manner whereby electricity is stolen or wasted; or damages or destroys an electric meter, apparatus, equipment, wire or conduit or causes or allows any of them to be so damaged or destroyed as to interfere with the proper or accurate metering of electricity, so as to abstract or consume electricity or knowingly use or receive the direct benefit of electric service shall be guilty of an offence under Sections 383 and 400 of the Criminal Code, Sections 286 (2) of the Penal Code and Section 1 of this Regulation, and shall be punishable with terms of imprisonment as applicable, provided under Sections 390 of the Criminal Code, Section 287 of the Penal Code or Section 94 of the EPSR Act. " Further to the above, Section 94 (3) of the Electric Power Sector Reform Act (EPSRA)6 also contains provisions prohibiting electricity theft in whatever manner. It provides that: "Notwithstanding anything contained in any other law, any person who willfully destroys, injures or removes equipment or apparatus of a licensee commits an offence and is liable on conviction to imprisonment for a period of not less than five (5) years and not more than seven (7) years."

In conclusion, illegal electricity connections are not only illegal but also pose significant dangers to individuals, communities, and the economy. It is crucial for individuals and communities to report any illegal connections to electricity providers and promote safe and legal electricity practices for a safer and more sustainable future.

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