Ikeja Electric, AEDC, Others May Lose Operating Licence

Ikeja Electric Licence

By Dipo Olowookere

The operating licences of eight electricity distribution companies in the country may be revoked by the Nigerian Electricity Regulatory Commission (NERC) pursuant to Section 74 of the Electric Power Sector Reform Act.

The industry regulator, in an advertorial, said it might be forced to take this action because the affected electricity firms violated some provisions of the EPSR Act in July 2019.

These companies are the 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.

“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,” a notice from NERC signed by its commissioner, Mr Dafe Akpeneye, said.

It was further said these companies are expected to explain within two months why their licences should not be cancelled.

According to NERC, it considers actions of the energy firms as “manifest and flagrant breaches” of EPSRA, terms and conditions of their respective distribution licences and the order.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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