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Six DisCos comply with NERC directive after licence revocation threat

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Six of the eight Power Distribution Companies (DisCos) which the Nigerian Electricity Regulatory Commission (NERC) had threatened with revocation of licence have complied with the approved minimum remittance threshold in the Order for July to September 2019.

NERC had given the DisCos; Abuja, Benin, Enugu, Ikeja, Kaduna, Kano, Port Harcourt and Yola distribution companies, till December 7, 2019, to explain why their license should not be revoked.

The commission said the 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.

But in a notice sent to the affected companies and obtained by the News Agency of Nigeria (NAN) in Lagos on Sunday, it was said that only Enugu and Port Harcourt Electricity Distribution Company failed to comply with the remittance directive in the period under review.

The notice dated Dec. 12 was signed by Mr Dafe Akpeneye, Commissioner, Legal Licensing and Compliance, NERC.

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NERC said: “The remittance to Nigerian Bulk Electricity Trading (NBET) Plc by the DisCos to date indicates that six out of the eight DisCos (AEDC, BEDC, IE, KEDCO, YEDC and KAEDCO) met the expected minimum remittance thresholds for the three months of July to September 2019.

“Two out of the eight DisCos (EEDC and PHEDC) did not meet the expected minimum remittance thresholds for any of the three months of July to September 2019.

“The commission reiterates that the failure of DisCos to comply with expected minimum remittance threshold in the order exposes Nigerian Electricity Supply Industry (NESI) to systemic risk.

“It threatens the sustainability of other parts of the value chain and the ability to improve services to customers.”

The commission said consequently, a public hearing would be held by NERC on Dec. 19 on the issues affecting the two non-compliant DisCos in line with Section 41 of Electric Power Sector Reform Act and Section 17 of the Business Rules.

NERC said in recognition of the “good faith” demonstrated by the six other DisCos, the commission and their management would meet on Dec. 20 to address issues concerning them instead of a public hearing.

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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

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