DisCo Cuts Off Power to State Government Over N2.9 Billion Debt
- Kaduna Electric has cut off the electricity supply to the Kaduna State Government House due to outstanding bills
- This action underscores the company's effort to fulfil its financial responsibilities amid wider issues within the electricity sector
- The disconnection occurred just hours after the state's internal revenue service shut down the electricity company over unpaid taxes
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
Kaduna Electric, the electricity distribution company, has cut off power to the government house and other state facilities due to an outstanding debt of N2.9 billion.
The disconnection occurred just hours after the Kaduna State Internal Revenue Service (KADIRS) shut down the Kaduna Electricity Distribution Company (KAEDC) over unpaid taxes amounting to N600 million.
Source: UGC
It would be recalled that in a similar move in June, Abuja Electricity Distribution Company (AEDC) threatened to disconnect ministries, departments, and agencies under the federal and state governments over rising debt.
Why Kaduna Electric disconnected government house
According to a statement posted on X (formerly Twitter), this debt has accrued over a period of seven months, from January to July, including past due amounts.
The company said the action highlights its necessity to fulfil its financial responsibilities while navigating broader issues within the electricity sector.
They emphasized that this action was taken only after "extensive efforts to resolve the issue through consultations and reconciliations" proved unsuccessful.
Kaduna Electric said:
“In a dramatic move highlighting tensions between utility providers and state governments, Kaduna Electric has disconnected electricity supply to the Kaduna State Government House and other state government accounts due to unpaid bills.”
Kaduna DisCo reported that the current unpaid balance for electricity usage from January to July 2024 totals N1,166,856,991.87, contributing to an overall debt, including past arrears, of N2,943,060,116.77.
The company noted that although a payment of N256,920,963.88 was made on May 9, 2024, for electricity used between September and December 2023, the remaining debt is still substantially high.
Kaduna Electric stated that it decided to cut off power after numerous efforts to resolve payment issues, including multiple discussions with state officials.
In comparison, other states served by Kaduna Electric, such as Sokoto, Kebbi, and Zamfara, have kept their accounts in good order.
The disconnection notice was issued on July 21, 2024, and was received by the Governor’s Office on July 22, 2024.
Kaduna Electric stated that stakeholders are waiting to see how the state will handle the outstanding arrears and whether power will be restored to the impacted government offices.
It should be noted that earlier this year, the Nigerian Electricity Regulatory Commission (NERC) dissolved the board of Kaduna Electric due to the company's inability to meet its financial obligations.
DisCo threatens to disconnect southeast govt offices
In related news, Legit.ng reported that the Enugu Electricity Distribution Company (EEDC) threatened to disconnect all five southeast government houses for failing to pay their accumulated energy bills.
This was disclosed in a disconnection notice released to the press on Friday, June 7, stating that the company is owed over N180 billion in unpaid electricity bills.
It stated that the company would commence the disconnection of electricity supply to these indebted customers.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
