Over the years, the reoccurrence of illegal connections and electricity theft has caused the issue to become the new normal on the continent. Due to the high cost of purchasing electricity, in some cases, and sheer greed, in other cases (or a mixture of both), the situation of electricity theft, a growing cartel in Africa, is becoming very threatening.
In Nigeria, for example, energy theft has become a resilient force that the electricity Distribution Companies (DisCos) battle. There are repeated repots of one DisCo or the other finding cases where the electricity consumers under their franchise areas are caught thieving.
Although these erring customers are arrested and charged, and despite the fact that the DisCos give out warnings even by reiterating the involvement of law enforcement agencies in punishing offenders; it all does not do much to deter this criminal act, because almost immediately after, a new case of electricity theft would arise.
This criminal act has for years increased revenue losses, which in turn has increased the debt profile and worsened the economy. And this is a valid reason for investors to not want to invest in the electricity industry.
Most recently, the African Centre for Energy Policy conducted a study that confirmed that the Electricity Company of Ghana (ECG) loses GH 1.3 million cedes annually to electricity theft.
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The study further confirmed that politicians in Ghana and even professionals in the energy industry are now involved in this new booming scheme, for their own greedy reasons. The study further showed that even staff of the Electricity Company of Ghana collaborate with electricity consumers to enable illegal connections and electricity theft.
With all these happening in the African electricity market, it is no secret that if unhandled, the electricity theft cartel would become another perfect front for the leaders to stakeholders to steal from an already lacking continental market.