Nigeria’s government moves to withdraw operational licenses of Ikeja DisCos, 7 others over breach of EPSR Act

…issues 60-day ultimatum to defaulting DisCos

The Federal Government  of Nigeria (FGN) is likely to withdraw operational licenses of Eight power distribution companies (DisCos) as the Nigerian Electricity Regulatory Commission (NERC) accused the DisCos of breaching the Electric Power Sector Reform Act (EPSRA) in July 2019.

Confiance News gathered from statement disclosed by the NERC last weekend.

‘Take notice that pursuant to section 74 of the Electric Power Sector Reform Act (“EPSRA”) and the terms and conditions of electricity Distribution licenses issued to the licensees (“DisCos”) by Nigerian Electricity Regulatory Commission (herein referred  to as “NERC” or the “Commission” has reasonable cause to believe that the DisCos listed below have breached the provisions of the EPSRA terms and conditions of their respective distribution licenses and 2016-2018 Minor Review of Multi Year Tarrif Order (MYTO) and Minimum Remittance Order (MRO) for the year 2019 hereinafter called the “order”,’ the statement read in part.

NERC Statement against defaulting DisCos

The Commission added that it considered the DisCos’ actions as “manifest and flagrant breaches” of EPSRA terms and conditions of their respective distribution licences and the order.

According  to the statement signed by NERC’s commissioner, Dafe Akpeneye, the power sector regulator stated that it intended to cancel licences issued to the DisCos pursuant to Section 74 of the EPSR Act.

The accused firms are: Ikeja Electric Plc; Abuja Electricity Distribution Company Plc; Benin Electricity Distribution Company Plc; Enugu Electricity Distribution Company Plc; Kaduna Electricity Distribution Company Plc; Kano Electricity Distribution Company Plc; Port Harcourt Electricity Distribution Company Plc; and Yola Electricity Distribution Company Plc.

In the statement, the power sector regulator, therefore, disclosed its issuance of a 60-day ultimatum for the DisCos to explain why their licenses should not be withdrawn in accordance with section 74 of EPSRA.

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