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Ikeja Electrics, 7 other DisCos risk losing their licenses as NERC blows hot over poor service delivery

Epileptic power supply may persist till 2023 – DisCos

The Nigerian Electricity Regulatory Commission (NERC) on Tuesday gave the eight power distribution companies (DisCos) till December 7, 2019, to explain why their license should not be revoked.

The directive was contained in an updated notice of hearing on petitions on the minor review and minimum remittance order signed by NERC’s Commissioner, Dafe Akpeneye.

The DisCos include Abuja, Benin, Enugu, Ikeja, Kaduna, Kano, Port Harcourt and Yola distribution companies.

The regulator had initially sent a cancellation notice in October 2019, mandating the companies to respond in 60 days or otherwise risk their licenses revoked and the DisCos had filed a petition against the Minor Review and Minimum Remittance Order.

NERC said the eight DisCos breached the terms and conditions of their licenses as stipulated in the Electric Power Sector Reform Act, the Minor Review of Multi Year Tariff Order and Minimum Remittance Order for the Year.

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The statement reads: “The Cancellation Notice remains extant and the eight DisCos are still required to SHOW CAUSE in writing within 60 days from the date of receipt thereof as to why their licences should not be cancelled in accordance with section 74 of EPSRA.

“The eight recipients of the Cancellation Notice who filed petitions against the Minor Review and Minimum Remittance Order have acknowledged that their petitions did not constitute their written response to the Cancellation Notice.

“The deadline for the submission of written response showing cause against the Cancellation Notice by the eight DisCos is 7 December 2019.”

NERC asked the DisCos to address issues of optimal utilisation, efficient operation, and principles of prudence and “used and useful.”

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