The licenses of eight power distribution companies may be canceled for breaching section 74 of the Electric Power Sector Reform Act (EPSRA).
According to the Nigerian Electricity Regulatory Commission (NERC), the power distribution firms include Ikeja, Abuja, Benin, and Enugu Discos.
Others are Kaduna, Kano, Port Harcourt, and Yola Discos.
NERC an eight-page notice described the actions of the DisCos as “manifest and flagrant breaches” and they have 60 days to explain why their licenses should not be canceled.
“The Commission considers the actions of the aforementioned DisCos as “manifest and flagrant breaches” of EPSRA, terms, and conditions of their respective distribution licenses and the Order; and therefore requires each of them show cause in writing within 60 days from the date of receipt of this Notice as to why their licenses should not be canceled in accordance with section 74 of EPSRA.”
The commission also insisted that DisCos with an excess of tariff shortfall over market shortfall shall be compensated accordingly for the difference, but all Ministries, Departments, and Agencies should also be metered within 60 days.
“The Order reiterated that the responsibility and initiative for revenue collections from all customers including Ministries, Departments and Agencies (“MDAs”) of States and Federal Government rest with the DisCos.
“Accordingly, this order made it mandatory for all DisCos to meter all MDAs with appropriate meters of their choice within 60 days from the effective date of this Order.
“All DisCos reserve the right to disconnect any MDAs defaulting in the payment for electricity in line with the Regulation on Connection and Disconnection Procedures for Electricity Services,” it added.