A Kaduna-based firm, RH Plastic, has accused Kaduna Electric of failing to supply stable electricity, leading to significant financial losses during a 10-day blackout in October 2024. The company, which supplies packaging materials for the food and oil industries, lost an estimated N60 million due to the power outage, and it is now demanding compensation and urgent action to prevent future disruptions.
The blackout, which affected Kaduna, Kano, and other northern states, caused widespread frustration among electricity consumers. RH Plastic, a major customer of Kaduna Electric, used over 500,000 kWh of electricity monthly, paying nearly N100 million for the supply. However, the extended power failure led to raw material wastage, machine downtimes, and production halts, severely impacting the company’s operations and finances.
“The Outage Paralyzed Our Operations”
Sanjeev Kumar, Head of Manufacturing and Maintenance at RH Plastic, expressed frustration over the devastating impact of the blackout. Speaking at a Customer Complaint Summit organized by the Nigeria Electricity Regulatory Commission (NERC), Kumar emphasized that the outage was especially damaging because the company relies heavily on consistent electricity to meet its production targets.
“As a production company, we rely heavily on consistent power to meet the demands of our esteemed customers,” Kumar said. “Running our machines on generators is unsustainable because of the prohibitive costs. This outage paralyzed our operations and caused substantial financial losses.”
Kumar further added that restarting the machinery after such a prolonged outage required additional power, which added to the financial strain on the company. “We are among the biggest consumers of Kaduna Electric, and yet this outage caused process wastages, quality defects, and unmet customer demands that have severely dented our business and balance sheet,” he said.
The Call for Compensation and Solutions
RH Plastic is not only demanding compensation for the losses incurred during the outage but is also calling for lasting solutions to prevent such blackouts in the future. The company is urging Kaduna Electric to address issues like power fluctuations, low voltage, and unexpected outages that have been negatively affecting productivity and profitability.
Vaibhav Lakhole, a colleague of Kumar, also expressed the company’s concerns. “We need Kaduna Electric to take serious steps to ensure this doesn’t happen again. It’s not just about the lost money; it’s about the trust we have in their ability to provide reliable power for businesses like ours.”
NERC’s Response to the Claims
However, the Nigeria Electricity Regulatory Commission (NERC) has responded cautiously to the claims, stating that compensation for outages caused by external factors, such as grid collapse, is not feasible. Hajiya Aisha Mahmud, the Commissioner in charge of Consumer Affairs at NERC, explained that customers could only claim compensation if the outage was the direct fault of the distribution company.
“The Electricity Company can only compensate if it is the fault of the utility, where customers could not get the supply of hours dedicated to their band,” Mahmud stated. “But if it is the fault of the utility and customers were supposed to receive power but did not, then compensation is warranted. However, since the grid collapse is not within the control of the distribution company, asking them to compensate for this issue would be unfair.”
The Governor’s Commitment to Improved Power Supply
The Kaduna State government has also weighed in on the issue, stressing the importance of improving power supply to support the economic growth of the state. Governor Uba Sani, represented by Idris Aminu Idris, Managing Director of Kaduna State Power Supply Company (KAPSCO), highlighted the state’s investment in power sector reforms and the need for better coordination between the government and electricity providers.
“Reliable power supply is the cornerstone of any modern society. Its inadequacy continues to hinder socio-economic and technological advancement,” Governor Sani said. He emphasized that the Kaduna State government had invested billions of naira into improving the power supply, including purchasing and installing transformers in communities and public facilities.
Governor Sani also discussed the state’s efforts to improve the regulatory environment for the energy sector. “We are working on adapting an electricity policy, which will be a vital step towards achieving our vision of active participation in the energy sectors,” he said.
A Call for Unity and Action
The Governor called on all stakeholders, including Kaduna Electric, NERC, and the people of Kaduna, to work together in good faith to address the power challenges facing the state. He reiterated that the state government was committed to fostering a strong partnership with electricity providers to ensure reliable and consistent power supply for businesses and residents.
“The state has demonstrated its commitment to fostering this partnership,” Governor Sani said. “But we need to do more to ensure the sustainability of power supply and extend distribution networks to underserved communities within Kaduna State and beyond.”
