Reps ask commission to stop fixed electricity billings
The Nigerian Electricity Regulatory Commission (NERC) has given 27 power generation companies 30 days to explain why their licences should not be revoked. NERC gave the deadline after a completion of an audit of the activities of the companies. According to a statement by the Head, Public Affairs Department of the commission, Dr. Usman Abba Arabi, NERC discovered during the auditing that the affected firms could not meet the terms and conditions for their licences. He said: “Contained in the notice are 63 generation and distribution companies rated as category one. They are in operations and have no issue with the commission.
Forty other firms in categories one to four will, however, have to justify their continued ownership of their licences or get it withdrawn within the next 30 days to 12 months. “In category two are those licensees that have ceased operations. These are CET Power Projects been promoted by West African Portland Cement Company, Ewekoro, Ogun State and Contour Global Solutions of Nigeria Bottling Company of Apapa, Lagos State. “The commission in its notice is to immediately “start the process of cancellation of these licences in line with clause 17 of the Electric Power Sector Reform Act of 2005” which listed five conditions for cancellation of licences.” According to the commission, 13 other power generation companies in category three were not in operations but had satisfied the terms of their licensing.
It listed companies in this category to include Ethiope Energy; Supertek Nigeria; Mabon Energy; Bresson AS; Hudson Power; Knox J & L; Tower Power, Abeokuta; Zuma Energy Nigeria transferred to Itobe Coal 1, 2, 3 and 4 firms It said those in this category would “be required to satisfy their outstanding milestones and start construction within the next 12 months, failure which the commission will commence the process for withdrawal of their licences in line with clause 18 of the NERC Application for Licences (Generation, Transmission, System Operations, Distribution and Trading) Regulations, 2009.”
In the fourth category are five power generation firms that “are not in operations and have not substantially satisfied their milestones.” NERC gave the companies 30 days to show why their licences should not be cancelled. The affected companies include ICS Power; Anita Energy; Ibafo Power Station; Minaj Holdings and Gateway Electricity. It said other 20 electricity generation firms in category five were “not in operation and are not submitting quarterly reports to the commission.” They would be required to, within 30 days, provide justification for their licences or get it revoked, it added.
The commission, in its notice, said: “Licensees listed in categories two are hereby notified of the intention of the commission to commence the process for the cancellation of their licences on the grounds that the licensees have ceased operations. “Those in categories four and five are notified of the intention of the commission to commence the process for the withdrawal of their licences on the grounds that these companies have failed to commission their licensed generating power stations within three years from the date of their licences.”
Licensees in categories two would only be notified of the Commission’s intention to cancel their licences, while those in categories four and five have 30 days moratorium to convince the commission against the withdrawal of their licences, NERC stated, adding that firms in category three have 12 months moratorium to start construction. Meanwhile, the House of Representatives yesterday directed NERC to immediately enforce the abolishment of fixed charges being collected from electricity consumers.
The resolution followed the adoption of a motion introduced by Hon. Philip Shuabu (Etsako East /West Central). The House also resolved to probe what it called, “an exploitation of consumers by electricity distribution companies in the country.”
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