Ikeja Electric, 8 Other Discos May Lose Licences Over Regulatory Infractions

The Nigerian Electricity Regulatory Commission (NERC) has issued queries to eight power distribution companies and threatened to withdraw their licences over regulatory infractions.

According to a notice on its website, the regulator said it intends to cancel the licences of the eight discos in line with its power under Section 74 of the Electric Power Sector Reform Act (EPSR) Act.
The eight power firms include Abuja, Benin, Enugu and Ikeja Discos. Others are Kaduna, Kano, Port Harcourt, and Yola Discos.
The notice was signed by one of the NERC’s commissioners, Dafe Akpeneye and gave the discos 60 days to explain why their licences should not be cancelled.
“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.”
“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.
It stated that the commission “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.”
Further analysis of the 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.
Three other the Discos remitted 10 percent during the period, while the highest remittance was 40 percent, as they all fell short of the expected minimum remittance stipulated by NERC.