The plan by members of the Manufacturers Association of Nigeria in Kano State to buy electricity directly from the Niger Delta Power Holding Company has generated discord between them and their current supplier, the Kano Electricity Distribution Plc.

MAN members buying electricity directly from NDPHC means they would bypass the utility companies in the state for direct power supply from the power generation company.

MAN said this would address the severe power challenges crippling local manufacturing activities in the state. But KEDCO expressed disappointment over what it called the “consistent antagonism from the Manufacturers Association of Nigeria, Kano Branch, despite sustained efforts to provide them with a stable power supply and exclusive discounts to the tune of N3n over the past 12 months.”

The utility company also accused members of the association of energy theft, costing it N2.5bn monthly. KEDCO said MAN’s decision to dump it would not impact its commercial operations significantly.

The distribution company threatened that it would no longer offer support through MAN because its members had “repeatedly failed” to rise to expectations.

“It should be noted that we have transitioned the majority of our industrial and manufacturing partnerships and schemes away from being granted through MAN over the past 12 months, and the statement attributed to MAN that they will receive direct supply from NDPHC will not significantly impact our commercial operations (if it were possible under current regulations and technical realities),” a statement signed by the Head of Corporate Communication, Sani Bala, said.

The DisCo recalled that MAN Kano had last year discouraged its members from paying the regulatory-approved tariffs and dragged it to court.

“The outcome of the court case was unsuccessful for MAN. Despite the rancour and huge losses accrued due to customer apathy, KEDCO offered, through MAN Kano, exclusive discounts in the form of a discounted transition tariff to support manufacturers and allow them to adjust to the new market realities in a structured manner.

“Since launching the programme in May 2024, that discount has amounted to a cumulative cost of N3bn to KEDCO. We do not regret this, as we view our industrial and manufacturing customers as the most important customer group, as they provide jobs and economic output,” Sani disclosed.

However, he stated that despite extending the discount to the manufacturers, losses still accrued. “Despite extending these discounts to key feeders, including 33kV Dangote, 33kV Dr Jamil, 33kV Flour Mills, and 33kV Coca Cola, all serving predominantly MAN members, KEDCO was still experiencing billing losses of N2.5bn per month on average on feeders assigned to Maximum Demand Industrial customers due to energy theft.

“Attempts to have MAN Kano support an aggressive stance against members and partner with us on an energy theft reduction programme proved unsuccessful. MAN Kano did nothing to support KEDCO in managing customer theft on industrial feeders,” he alleged.

Sani added that due to improved performance across its other portfolio segments, despite the discount, KEDCO had been able to turn performance around and “was the best performing DISCO in Northern Nigeria (in terms of market remittance), in the Q1 NERC released figures.”

He said KEDCO had even anticipated that the MAN in Kano would work with its national body towards a beneficial partnership with various DisCos to replicate the scheme for national development.

“But strangely, MAN neither communicated this to its national body nor to relevant stakeholders and never once publicly acknowledged the support. Sadly, MAN has consistently painted a false narrative to NDPHC and other stakeholders regarding their supply status.

“To set the record straight, our maximum demand industrial customers receive an average of 20 hours daily, signifying 95 per cent in service-based tariff compliance, making KEDCO one of the top performers nationwide. This is also available in NERC’s feeder compliance records.

“KEDCO has consistently prioritised stable power to over 50 industrial feeders across Kano, Katsina, and Jigawa States, making it the ‘best DisCo for manufacturers’ in Nigeria. No other utility offers as much dedicated industrial support in the region.

“KEDCO maintains its readiness to extend a supportive hand to its willing customers on a bilateral basis and will no longer offer support through MAN, as they have repeatedly failed to rise to expectations,” it was stated.

While urging MAN to strengthen mutually beneficial partnerships, rather than “making statements that could elicit unnecessary panic and mislead stakeholders, KEDCO strongly encouraged the NDPHC to work more constructively in the market and align its engagements with the realities of the electricity market for the collective benefit of the country.”

KEDCO reaffirmed its commitment to progressive partnerships and reliable power supply for socio-economic growth while protecting the stability of the electricity sector for sustainable development.

The PUNCH reported on Monday that the MAN delegation, led by the Managing Director of Dala Foods, Kano, Ali Madugu, had visited the NDPHC Managing Director, Jennifer Adighije, requesting direct power purchase from the power company.

Madugu was said to have appealed to the NDPHC managing director to extend the company’s Eligible Customer Programme to MAN members in Kano “to address the severe power challenges crippling local manufacturing activities in the state.”

Madugu emphasised the readiness of MAN to partner with NDPHC for a sustainable power supply. “Our members have both the capacity and the willingness to procure power directly from NDPHC. Access to reliable electricity is critical for reviving industries and sustaining jobs in Kano State,” he stated.

Responding, the managing director expressed NDPHC’s readiness to sell electricity directly to the manufacturers within the ambit of regulations and infrastructural capacity.

“We are committed to partnering with the manufacturing sector to drive industrial growth, create jobs, and enhance socio-economic development. Within the provisions of the eligible customer framework, we are ready to work with MAN in Kano to make this happen,” she was quoted in a statement on Sunday. (PUNCH)