Business
Kaduna Power Supply Company Denies Alleged N2.9bn Debt to KAEDCO
The Kaduna Power Supply Company (KAPSCO) has dismissed allegations that the Kaduna State Government owes N2.9 billion to the Kaduna Electricity Distribution Company (KAEDCO), calling the claim “unfounded.”
Aminu Idris, managing director of KAPSCO, addressed the dispute in a statement released on Saturday, following KAEDCO’s disconnection of the government house and other state facilities on August 2 due to an alleged N2.9 billion debt.
The disconnection occurred just hours after the Kaduna State Internal Revenue Service (KADIRS) sealed KAEDCO’s office over an alleged N600 million unpaid tax.
KAEDCO defended its actions, stating that the disconnection was a “last resort” after extensive efforts to resolve the issue through consultations and reconciliations failed. A disconnection notice had been issued to the governor’s office on July 21 and received on July 22.
However, KAPSCO refuted the claim, expressing disappointment over KAEDCO’s actions and emphasizing the need for reconciliation. “As an agency of government responsible for verifying all public building energy consumption in the state, we feel duty-bound to correct the erroneous impression created by Kaduna Electric,” the statement read.
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KAPSCO outlined that it regularly receives, verifies, and pays electricity bills through the Ministry of Finance, including those for the Kaduna State Government House.
The agency insisted that the N2.9 billion debt claim by KAEDCO is baseless, noting that the administration of Governor Uba Sani had already addressed the so-called inherited debt from the previous administration.
According to KAPSCO, a total of N10.26 billion was billed by the DisCo for the period between January 2015 and March 2023, with KAPSCO verifying N7.51 billion of that amount. The state government has paid N7.32 billion to KAEDCO, saving nearly N2.85 billion due to overbilling and non-compliance with Nigerian Electricity Regulatory Commission (NERC) guidelines.
KAPSCO also highlighted that N256.92 million was paid in May 2024 as a final settlement for all outstanding debts, with additional payments approved for the months of January to May 2024.
The agency criticized KAEDCO’s decision to disconnect the Yusuf Dantsoho hospital from power, calling it a violation of NERC’s Customer Protection Regulation, which prohibits disconnection of facilities with life support machines.
The Kaduna State Government has invited KAEDCO to reconcile all pending issu.
es, emphasizing its commitment to supporting the Nigerian Electricity Supply Industry (NESI) and improving the electricity infrastructure within the state