Eight Discos May Lose Licences over Breach of Power Reform Act

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About eight electricity distribution companies (Disco) may have their licences cancelled over allegation of breach of power reform act.
Already the Nigerian Electricity Regulatory Commission (NERC) has issued notices to the affected companies.
According to NERC, the Discos breached the execution of the 2016 to 2018 minor review of the Multi Year Tariff Order (MYTO) and failure on minimum remittance order for 2019.
Among the Discos affected include the Abuja Electricity Distribution Company Plc (AEDC); Benin Electricity Distribution Company Plc (BEDC); Enugu Electricity Distribution Company Plc (EEDC); Ikeja Electric Plc (IE); Kaduna Electricity Distribution Company Plc (KAEDCO); Kano Electricity Distribution Company Plc (KEDCO); Port Harcourt Electricity Distribution Company Plc (PHEDC) and Yola Electricity Distribution Company Plc (YEDC).
NERC had in the notice to the companies given them 60 days to convince the Commission why their licences should not be revoked.
Part of the notice given to the Discos reads: “The commission considers the actions of the aforementioned Discos as manifest and flagrant breaches of EPSRA, terms and conditions of their respective distribution licences and the order; and therefore requires each of them 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.”
“The Discos are liable to relevant penalties/sanctions for failure to meet the minimum remittance requirement in any payment cycle in line with the provisions of its respective contracts with NBET, MO and the provisions of the Market Rules and Supplementary TEM (Transition Electricity Market) Order.
“The Discos shall maintain an adequate and unencumbered letter of credit covering three months based on the minimum payment obligations to NBET and the MO. The Discos shall comply with the minimum remittance thresholds specified in the order. The commencement date of the order was 1 July 2019.”


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