Plans are underway by the Federal Government to cancel the licences of eight power distribution companies in Nigeria, following their breach of some provisions of the Electric Power Sector Reform Act in July 2019.
According to the Nigerian Electricity Regulatory Commission, the eight distribution companies, DisCos, include Kano Electricity Distribution Company, KEDCO; Kaduna Electricity Distribution Company, Kaduna Electric; Abuja Electricity Distribution Company, AEDC.
Other DisCos that may be axed are Benin, Enugu, Ikeja, Port Harcourt and Yola.
In a notice posted on its website on Tuesday evening, the power sector regulator said it intended to cancel licences issued to the eight Discos pursuant to Section 74 of the EPSR Act.
In the eight-page notice to the Discos, which was signed by one of the NERC’s commissioner, Dafe Akpeneye, the commission stated that the power firms had 60 days to explain why their licences should not be cancelled.
It said, “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.”
Outlining the Discos, it said, “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.”
The commission said it considered the actions of the aforementioned Discos as “manifest and flagrant breaches” of EPSRA, terms and conditions of their respective distribution licences and the order.