Ikeja, Abuja, Six Other Discos Risk Losing Operating Licences

OLADELE OGUNTIMEHIN 

For defaulting on the remittance threshold for July 2019 billing cycle to the Nigerian Bulk Electricity Trading (NBET) Company, eight power distribution companies are at the risks of losing their operating licenses.

The default run contrary to Section 74 of the Electric Power Sector Reform Act in July 2019.

Nigerian Electricity Regulatory Commission, (NERC) listed the eight power firms to include Abuja, Benin, Enugu and Ikeja Discos. Others are  Kaduna, Kano, Port Harcourt and Yola Discos.

NERC in an eight-page notice signed by one its commissioner, Dafe Akpeneye on its website Tuesday evening said it would cancel licences issued to the eight Discos pursuant to Section 74 of the EPSR Act if they did not give reasons for their default within 60 days.

It said, “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.”

The NERC notice showed that the eight Discos failed to meet the expected remittance threshold for the month of July 2019 billing cycle to the Nigerian Bulk Electricity Trading company while three others remitted only 10 per cent during the period.  For the month however, the highest remittance was 40 per cent, falling short of the expected minimum remittance stipulated by NERC.

Outlining the Discos, it said, “Abuja Electricity Distribution Company Plc; Benin Electricity Distribution Company Plc; Enugu Electricity Distribution Company Plc; Ikeja Electric Plc; Kaduna Electricity Distribution Company Plc; Kano Electricity Distribution Company Plc; Port Harcourt Electricity Distribution Company Plc; and Yola Electricity Distribution Company Plc.”
The commission said it considered the actions of the aforementioned Discos as “manifest and flagrant breaches” of EPSRA, terms and conditions of their respective distribution licences and the order.