MetroBusinessNews

Two DisCos May Lose Licenses As Stake holders Blame NERC For Supervisory Laxity

NERCThe Enugu and Port Harcourt Electricity Distribution Companies (DisCos) may lose their operational licenses following their failure to meet the set target date for remittance deadline by the Nigeria Electricity Regulatory Commission (NERC)  according to Glo zl Financial Figest, an online platform. 
But industry analyst and stakeholders have continued to berate the regulator for lack of effective monitoring and supervision of the firms redulting on exploitation through estimated billing even for darkness 
For instance, some consumers in Arepo and Ikeja areas have not been enjoying light for quite sometime and specifically even since the strike was called  off.
NERC had on Nov. 5 served notice to eight DisCos of its intention to cancel their licences for failure to meet their obligated remittance  to the Nigerian Bulk Electricity Trading (NBET)
They were given up till December 9 to show cause in writing as to why their licences should not be withdrawn.
The  firms are Abuja Electricity Distribution Company Plc, Benin Electricity Distribution Company Plc, Enugu Electricity Distribution Company Plc and Ikeja Electric Plc.
Others are Kaduna Electricity Distribution Company Plc, Kano Electricity Distribution Company Plc, Port Harcourt Electricity Distribution Company Plc and Yola Electricity Distribution Company.
However, in a notice by NERC on Sunday, two companies; Enugu Electricity Distribution Company Plc and Port Harcourt Electricity Distribution Company Plc failed to meet the set target date for remittance and may be liable for sanction.
According to  NERC, “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.
The Commission said it has reasonable cause to believe that the two DisCos have breached the provisions of the Electric Power Sector Reform Act, terms and conditions of their respective distribution licences and the 2016 – 2018 Minor Review of the Multi Year Tariff Order (MYTO) and Minor Remittance Order for the year 2019.

But some stakeholders say the verdict does not mean anything to consumers as the Discos have continued to put them in perpetual darkness.

Exit mobile version