NERC threatens to sanction Discos on reporting obligations

By Etuka Sunday

The Nigerian Electricity Regulatory Commission (NERC) has threatened to sanction electricity Distribution companies (Discos) over their compliance of their reporting obligations.

A statement by the Head, Public Affairs Department, NERC, Dr. Usman Abba Arabi, said it was the first time the Commission was assessing the utilities on their Key Performance Indicators since they took over barely six months ago.

With just three out of the eleven Distribution Companies meeting up with the directive, the Commission considered it a total disregard of its directives and warned that it will soon enforce the relevant section of the EPSR Act (2005) on reporting obligation.

The Nigerian Electricity Regulatory Commission (NERC) expressed reservations on the compliance level of Distribution Companies in the reporting and submission of data that would allow for proper network data assessment by the Commission.

The reporting obligation as contained in part 10, section 94(2) of the Electricity Power Sector Reform Act (2005) states that any person who fails or refuses to furnish a return or to supply information in the manner and time prescribed, or gives false or incomplete information commits an offence and is liable on conviction.

The Chairman and Chief Executive Officer of the Commission, Dr. Sam Amadi said that the CEOs had been told at their April meeting to comply with the Commission’s request on submission of baseline statistics on distribution assets they took over.

According to Dr. Amadi, there is a need for network data assessment, amongst which is to establish a data bank of all existing distribution assets, to monitor, track and report performance of the Distribution Companies with respect to strengthening of distribution systems and capacity expansion as well as facilitate expansion and development of the distribution networks.

He urged the Distribution Companies to improve on their performances and make necessary adjustments. He said a similar exercise with the Transmission and Generation Companies will soon be carried out.

“Discos are to note their performances and make necessary adjustments to ensure timely and accurate reporting. Similar exercises would be conducted for Transmission and Generation Companies”, Dr. Amadi said.