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NERC issues warning: Gencos could risk losing licences

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NERC, empowered to monitor and regulate the electricity industry, probes distribution and generation companies.

On Tuesday, the Nigerian Electricity Regulatory Commission (NERC) stated that 27 power generation companies risk losing their operating licences for failing to meet the terms of their licences, the Daily Independent reported.

The announcement is in line with NERC’s resolve to ensure that Nigerians enjoy dividends of the power sector privatisation.

30 days to justify licences

The generation companies, including Azura Power WA Limited, Geometrics Power Limited and Bauchi State owned Yankari Power Company Limited, were directed to justify why their licences should not be withdrawn within 30 days.

The NERC pointed out that the notice followed an audit of the various licensees.

According to NERC, while 63 distribution and generation companies, rated as category one, are in operation and have no issue with the commission, 40 others must “justify their continued ownership of their licences or get it withdrawn within the next 30 days to 12 months.”

Clause allows for cancellation

It was stated that category two generation companies are those licensees that have ceased operations, such as CET Power Projects promoted by West African Portland Cement Company, Ewekoro, Ogun State and Contour Global Solutions of Nigeria Bottling Company of Apapa, Lagos State.

NERC warned that it would immediately “start the process of cancellation of these licences in line with clause 17 of the Electric Power Sector Reform Act of 200, which listed five conditions for cancellation of licences.”

Another 13 power generation companies in category three “are not in operation but have substantially satisfied their milestones,” stated NERC.

These are 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 companies.

Others in this category are MBH Power; Delta Electric Power; Wedotebary Nigeria; Century Power Generation and Supertek Electric.

Probe into electricity DISCOS

In further news, electricity consumers in Nigeria may soon get some relief as the House of Representatives on Tuesday resolved to investigate “an exploitation” of consumers by Electricity Distribution Companies (DISCOs), the Guardian reported.

The resolution followed the adoption of the motion on the urgent need for the NERC to “better protect the public from certain unwholesome practices by the DISCOs”.

The House, quoting section 32 (2) (f) of the Electricity Power Sector Reform Act, Cap. E7, Laws of the Federation, 2004, which empowers NERC to monitor and regulate the electricity industry, expressed worry at the complaints about unwholesome practices that fell short of established standards.

An ad-hoc committee was proposed for the investigation of the allegations and to report back to the House within four weeks. This was adopted as a resolution, though the committee is yet to be constituted.



Nicolette Pombo-van Zyl
As the Editor of ESI Africa, my passion is on sustainability and placing African countries on the international stage. I take a keen interest in the trends shaping the power & water utility market along with the projects and local innovations making headline news. Watch my short weekly video on our YouTube channel ESIAfricaTV and speak with me on what has your attention.