SAN FRANCISCO, October 09, (THEWILL) – The Federal Government may cancel the licences of eight power distribution companies as the Discos were said to have breached some provisions of the Electric Power Sector Reform Act.
In a notice posted on its website on Tuesday evening, the Nigerian Electricity Regulatory Commission (NERC) said the eight power firms are Abuja, Benin, Enugu, Ikeja, Kaduna, Kano, Port Harcourt and Yola Discos.
The regulatory body revealed that it intended to cancel the licences issued to the eight Discos pursuant to Section 74 of the EPSR Act.
In the eight-page notice to the Discos, which was signed by one of the NERC’s commissioner, Dafe Akpeneye, the commission stated that the power firms had 60 days to explain why their licences should not be cancelled.
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.”
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.
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.”