The Nigerian Electricity Regulatory Commission (NERC) has threatened to withdraw the license of Ikeja Distribution Company (IE) and seven other electricity distribution companies (Discos) over an alleged breach of rules.
NERC said the distribution companies breached some provisions of the Electric Power Sector Reform Act in July 2019.
The companies under consideration for the breach of rules include Abuja DisCo (AEDC), Benin DisCo (BEDC), Enugu DisCo (EEDC).
Others are Kaduna DisCo (KAEDCO), Kano DisCo (KEDCO), Port Harcourt DisCo (PHEDC) and Yola DisCo (YEDC).
NERC’s Legal, Licensing and Compliance Commissioner, Dafe Akpeneye, in a notice accused the DisCos of breaching the provisions of the electric power sector reform act (ESPRA).
“Take notice that pursuant to section 74 of the EPSR Act and the terms and conditions of electricity distribution licences issued to the distribution licensees by Nigerian Electricity Regulatory Commission has reasonable cause to believe that the Discos listed below have breached the provisions of EPSRA, terms and conditions of their respective distribution licences and the 2016 – 2018 Minor Review of Multi Year Tariff Order and Minimum Remittance Order for the Year 2019,” Akpeneye said.
The commission said the DisCos failed to meet up with the expected minimum remittance to the Nigerian Bulk Electricity Trader (NBET) for the July billing cycle.
Akpeneye said NERC “therefore requires each of them (Discos) to show cause in writing within 60 days from the date of receipt of this notice as to why their licences should not be cancelled in accordance with section 74 of EPSRA.”
The commissioner said the discos are obligated to settle their market invoices in full as adjusted and netted off by applicable tariff shortfall approved by the commission.
Akpeneye warned that the discos are liable to relevant penalties and sanctions if they fail to meet the minimum remittance requirement in any payment circle in line with the provisions of its respective contracts “with NBET, MO and provisions of the market rules and supplementary TEM Order.”