There are indications that the Federal Government may cancel the licences of eight power distribution companies as a result of what insiders refer to as “breach of provisions of the Electric Power Sector Reform Act of July 2019.”
According to the Nigerian Electricity Regulatory Commission, the eight power firms include Abuja, Benin, Enugu and Ikeja Discos. Others are Kaduna, Kano, Port Harcourt and Yola Discos.
According to the notice on its website on last night, 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was signed by Dafe Akpeneye, the commission gave the power firms 60 days to explain why their licences should not be withdrawn.
The action of the Eight Discos was termed “manifest and flagrant breaches” of EPSRA, terms and conditions of their respective distribution licences and the order.
“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.” The commission stated.