Business Hilights
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Discos licences hang in balance as NERC’s window expires

The only thing that will reassure Nigerians that the Federal Government, through the electricity regulatory agency, the Nigerian Electricity Regulatory Commission (NERC), has no hand in the poor services delivery of Discos is to wield the big stick following the inability of Discos to respond to certain industry requirements demanded by the agency.

Recall that the agency had in November, asked all Discos operating in Nigeria to submit replies on query given to them which must contain reasons why their licenses should not be cancelled within one month which expired Saturday, December 7, 2019.

According to the regulator, the Discos breached the terms and conditions of their respective distribution licences based on the extant provisions of Electric Power Sector Reform Act and the 2016 – 2018 Minor Review of Multi Year Tariff Order and Minimum Remittance Order for the Year.

Whereas NERC has maintained sealed lips on next line of action on the none submission of demanded replies, industry analysts say if NERC fails to act according to its threat which is revocation of erring Discos’ licences, it then mean that it has been an accomplice in the poor services being delivered by Discos after all.

Business Hilights recalls that NERC had issued the clear licence cancellation notices to eight power distribution companies in October this year and mandated them to respond within 60 days, otherwise their licences would be cancelled.

The affected eight power firms include Abuja, Benin, Enugu, Ikeja, Kaduna, Kano, Port Harcourt and Yola Discos.