Tag: NERC

  • NERC slams N47.6m fine on TCN over audit report

    NERC slams N47.6m fine on TCN over audit report

    The Transmission Company of Nigeria (TCN) has been fined N47,670,000 by the Nigerian Electricity Regulatory Commission (NERC) over the company’s failure to submit its 2013 and 2014 audited financial statements.

    According to a document with reference number NERC/Directive/160 signed by the acting Chairman, Dr. Anthony Akah, and General Manager, Legal, Licensing and Enforcement, Mrs Olufunke Dinneh, TCN has up to two weeks to pay the fine beginning from December 2  when the Directive was signed. The fine attracts five per cent interest daily after the due date.

    The commission said in a statement that TCN for failure to submit audited financial report has violated “Section 63 (1) of the Electric Power Sector Reform Act, 2005 that stipulates“a licensee shall comply with the provisions of its license, regulations, codes and other requirements issued by NERC from time to time.”

    Other infractions as contained in Directive 160 include Condition 4 and 5 of TCN’s Transmission Licence. Condition 4 stipulates that “Licensee shall furnish to the Commission information, in such a manner and at such times as the Commission may require” at the time and format as may be required by the Commission to perform its regulatory functions.

    Condition 5 of TCN’s licence further directs it to submit audited financial reports to the Commission as detailed in its Transmission Licence.

  • BEDC tops metering roll-out rating by NERC

    BEDC tops metering roll-out rating by NERC

    • Plans loss reduction

    Benin Electricity Distribution Plc (BEDC) has emerged tops in metering progress performance rating report among Distribution Companies (DisCos) carried out by the Nigerian Electricity Regulatory Commission (NERC) in its second quarter 2016 state of affairs of the electricity supply industry.

    According to a statement, the report, which came on the heels of additional 100,000 metering plan for the remainder of this year announced at the recent power sector stakeholders it hosted in Benin,  showed BEDC scoring 65.30 per cent to emerge overall lead performer in metering progress aspect of the report which indicates the percentage of customers metered.

    BEDC had demonstrated its consciousness of the metering gaps existing across its various customer classes and had commenced the process to cover the metering gap for existing customers in its area of operations. The company has been proactive in installation of meters having installed over 120,500 meters since takeover. It has taken advantage of both the Industry CAPMI Scheme and own funded meters. More than 90,000 out of these have been installed in 2016 alone.

  • NERC fines Benin, Port Harcourt DisCos N6.2m

    NERC fines Benin, Port Harcourt DisCos N6.2m

    The Nigerian Electricity Regulatory Commission (NERC) has fined Benin and Port Harcourt electricity distribution companies (DisCos) N6.220 million over their failure to comply with the decisions of Forum Offices rulings in complaints filed by their customers.

    The Commission in Directive 153 imposed a N5, 010, 000. 00 sanction on Benin Electricity Distribution Company (BEDC) for not complying with the decision of the Forum in complaints filed by Messrs Ikponmwosa Ogiesoba Barry; S. C. Ogoke; and F. E. Ubuane.

    The Commission in a statement yesterday, said the Forum Office is made up of five members of the public and handles complaints that are unresolved at the customer complaint unit of DisCos.

    Both Barry and Ubuane had filed complaints before the Benin Forum Office alleging fraudulent estimation of their electricity bills to which the Forum Office ruled in their favour, while Ogoke in his complaint contested the amount of fixed charge he was to pay the utility company.

    However, Benin DisCo ignored the directives of the Forum Office in those instances and the matter was subsequently referred to the Commission which issued Directives 153 upon completion of enforcement proceedings.

    According to Directive 153, “The Commission hereby fines BEDC N10,000 per day from April 14, 2016 to September 28, 2016 making a total N1, 670, 000 only” in each of the three instances bringing the fines to a grand total of N5, 010, 000 only.

    The Port Harcourt Electricity Distribution Company (PHEDC) in Directive 155 was sanctioned over its failure to comply with the Port Harcourt Forum Office decision in a complaint filed by one Toba Aremu Olugbemi.

  • CAPMI withdrawal: NERC, others assure customers of meters

    Subscribers to the recently- outlawed Credit Advanced Payment Metering Implementation (CAPMI) scheme should not lose sleep as plans have been made to provide them meters.

    Nigerian Electricity Regulatory Commission (NERC) Chairman, Dr. Anthony Akah, the Managing Director, Electricity Management Services Limited (EMSL), Peter Ewesor and Chairman, MEMCOL Nigeria Limited, a meter manufacturing company, Mr. Kola Balogun told The Nation that customers who paid for meters under the proscribed CAMPI would be given meters.

    Akah, in a statement made available to The Nation, said the 11 Electricity Distribution Companies (DisCos) had been directed by the Commission to provide meters to customers who had made their financial obligations to the scheme, and improve installation of meters to their customers, among other obligations.

    He said the obligations to customers, including improved power supply were part of the Performance Agreements (PAs) they (DisCos) signed with NERC, the Bureau of Public Enterprise (BPE), among others when they were taking over power companies unbundled from defunct Power Holding Company of Nigeria (PHCN).

    Akah, in a statement entitled: ‘CAPMI winding down and alternative to customer metering’, said globally, DisCos are tasked with the responsibility of providing meters to customers, and that those in Nigeria cannot be an exception.

    The NERC chief said: “It is expected that DisCos would meter all the customers who have so far paid for meters under the CAPMI scheme,  and should  not collect any form of payments for meters between now and November 1, 2016, when the scheme would cease to exist. Also, there is the need to improve on the implementation of the meter roll out plans as contained in the Performance Agreements signed by all the Electricity Distribution Companies. The plans were sequel to the approval by the Commission of the Multi Year Tariff Order (MYTO) 2015, which was designed to cover all the cost required for efficient operations by DisCos.”

    According to him, the DisCos had performed below expectation since they deployed about 500,000 meters between November 2013 and June 2016. He said the development made the Minister of Power, Works and Housing, Mr. Babatunde  Fashola to cancel the scheme.

    He said audits by the Commission revealed that most electricity customers were not metered 45 days after paying for meters as stipulated by the Performance Agreement, adding that the DisCos were selling meters to customers under the guise of implementing the CAPMI.

    Ewesor said subscribers to the scheme would get meters, since it was the Federal Government that abolished it.

    He said whenever a government discontinued its project, it would  cater for the people that had participated in it.

    Also, Balogun said it was either the DisCos provided meters to the people who subscribed to the scheme or pay them back. He said  the foreign exchange market was unstable, adding that DisCos would either pay the differentials or ask customers to pay it in the event that they discover that the cost of importing meters has gone up relative to the money paid by the subscribers.

    Balogun said: “This is business. If the DisCos have paid meter manufacturers abroad and are yet to get the meters, they have every right to collect their money back and pay customers back. The issue of money lying idle with the meter producers abroad while those who own the money (electricity consumers) are unable to get meters does not arise.’’

    He urged the government to allow local manufacturers to produce meters for the DisCos to fill the vacuum created by the cancellation of the CAPMI scheme.

  • 4m Nigerians awaiting prepaid metre -NERC

    4m Nigerians awaiting prepaid metre -NERC

    The Nigerian Electricity Regulatory Commission (NERC) has revealed that over four millions electricity consumers are awaiting prepaid metres in the country.

    The Acting NERC Chairman, Dr. Anthony Aka, made the disclosure in an interview with the News Agency of Nigeria (NAN), in Uyo yesterday.

    Aka said that the commission had improved on metering system, but however, explained that the unavailability of meter manufacturing companies were hindering maximum provision of meters to Nigerians.

    “You have to order them, you have to configured them and protect the system. You have to deploy the technical expertise to ensure that these meters are not bye passed. But as we speak today, theses meters are being bye passed,” he said.

    He said that the commission would sanction electricity Distribution Company which failed to comply with directives relating to the distribution of prepaid meters.

    “It is our responsibility to ensure compliance with these metering scheduled. We have our monitoring team following them and we want to make sure that if they don’t deploy the number of meter per month, per quarter or per year, we are going to sanction them severely for that,” Aka said.

    He said, “The customer that do not have electricity meter and who feels that they gave him a wrongful billing for that month and has the right to reject that bill and he should only pay the last bill he accepted.”

    He noted that any customer who paid for prepaid meter should be metered within 60 days of payment.

    “If they don’t meter you, the electricity distribution company has no right to estimate you or bill you if you have given money to them and they have not given you meter after 60 days,” he said.

    Aka said that NERC would ensure refunds were made to customers wrongly billed as well as install the new prepaid meter.

    He decried the situation where PHEDC workers were attacked by customers in the area, saying that such act was grossly unacceptable.

    “They are doing their legitimate job and for them to be harassed or interrupted in the course of doing their legitimate jobs, you are not helping to solve the problems of electricity in the country,” he said.

    He reiterated the company’s commitment that electricity consumers were not exploited for light they did not consumed.

    Aka explained that electricity distribution company was purely a private-driven sector and not a government sector.

    He sad that government was only providing a regulatory framework and enabling environment.

    He noted that fixed charges in electricity billing did not exist again but had been recalibrated as part of the charges.

    According to him, if there is no electricity, distribution company should not charge the customers.

    “We as a regulators listen to Nigerians, we remove the fixed charges and recalibrated it into the energy charged

    “What it means now is that if I don’t have light, you don’t have any right to charge me, If I travel for three months, you have no right to come back to my house and charge me,” he said.

    He decried the situation where consumers provide resources to restore faulty power installations or transformers to the company.

    He said that it was the obligation of the electricity distribution company to provide for the infrastructure, adding that the tariff paid by consumers covers infrastructure installations.

    He urged electricity distribution company staff not to compel customers to provide resources to restore faulty power installations in the country.

    “However, if communities want that, they should enter into agreement with us as a regulator being a witness to that and to ensure that the cost of that agreement should be refund over time by the distribution company,” Aka said.

    He gave Nigerians the assurance that the regulatory commission would continue to balance the interest of customers and that of the operators in the state.

  • NLC urges DisCOs, NERC to obey court order

    The Nigeria Labour Congress (NLC) has urged Electricity Distribution Companies (DisCOs) and the Nigerian Electricity Regulatory Commission (NERC ) to obey the court order that electricity tariff must revert to the old rate as against the over 40 per cent increase that workers are paying.

    It said the disregard of the order by government agencies was illegal and a sign of impunity.

    Addressing journalists in Lagos, after the NLC  Central Working  Committee (CWC) meeting, the NLC President, Comrade Ayuba Wabba, said in spite of the subsisting court order declaring as illegal the electricity tariff review, NERC and DisCOs were yet to comply.

    “CWC-in-session called on NERC and DISCOs to obey without further delay, the subsisting court order by reviewing downward the current electricity tariff,” he said.

    On the proposed new minimum wage, Wabba said  in view of the  hiccups in the economy associated with inflation and the fall of the naira, a new minimum wage is not only imperative, but urgent as the  it cannot take the workers to the next bus stop.

    Wabba also warned against imminent increase in pump price of premium motor spirit (PMS), otherwise called petrol.

    He warned that the union would resist any attempt by marketers or the Federal Government to review upward the pump price of petrol.

    He said: “We are now justified when we opposed the initial increase in the pump price of petrol. Purchasing power of Nigerians has reduced drastically following the initial increase in petrol price per litre.

    “We said it will worsen purchasing power of the workers. This is now coupled with non-payment of salary, non payment of pension and gratuity.

    “Our position still stands and every attempt to increase it will be resisted vehemently. We will mobilise our sister unions and affiliates.”

    Following non-availability of foreign exchange for importation of petrol, there are rumours that marketers may increase pump price of petrol soon.

  • Total blackout looms over tariff reversal – NERC

    The Nigerian Electricity Regulatory Commission (NERC) has appealed the judgment mandating it to reverse the 45 per cent increase in electricity tariff.

    It has also filed a stay of execution of the judgment, warning that total blackout looms if the application is not granted.

    In a Motion on Notice, NERC is seeking an order staying execution of the judgment pending the hearing and determination of its appeal.

    In a supporting affidavit deposed to by Martins Nwankwo, it said: “Refusal to grant this application will result in devastating consequences for the nation and indeed the entire electricity consumers in Nigeria as investment in power sector which encourages healthy competition will be discouraged.

    “In the same vein, the entire electricity generation and distribution stands the risk of total collapse in view of the recent devastation caused by vandalisation of power installations with its attendant decrease in power generation and distribution.

    “If this application is not favourably considered, there is a high likelihood that the citizens of the country will be subjected to total blackout while business and investments will be drastically affected.

    “We submit that any attempt to further subject the masses to further hardship will be setting the stage for chaos and anarchy in the society; which effect may be overwhelming.”

    Justice Mohammmed Idris of the Federal High Court, Ikoyi, Lagos, in a July 13 judgment on a suit by activist-lawyer Toluwani Adebiyi, declared that the electricity tariff increase was illegal.

    He ordered that it should be reversed immediately.

    NERC, in its Notice of Appeal filed by its counsel, Chief Anthony Idigbe (SAN), based on 14-grounds, said Justice Idris erred in law when he held that the court had jurisdiction to entertain Adebiyi’s originating summons when the processes were incompetent and statute barred, having been brought outside the statutory period prescribed under Section 2(a) of the Public Officers Protection Act of 2004.

    NERC said the trial judge took the litigant’s position by assisting him in couching his claim, adding that Justice Idris deprived the appellant of its constitutional right to fair hearing by granting a relief on newspaper admissibility not sought by the plaintiff, without hearing from the appellant.

    The appellant claims Justice Idris erred in law when he held that Adebiyi is allowed to approach the court without exhausting NERC’s internal dispute resolution mechanism pursuant to Section 45 and 50 of the Electricity Power Sector Reform Act 2005 (EPSRA).

  • No tariff hike, says NERC

    No tariff hike, says NERC

    The Nigerian Electricity Regulatory Commission (NERC) yesterday said it had not receive any request from distribution companies (DisCos) for a 100 per cent tariff hike.

    A statement endorsed by its Head, Media Unit, Michael Faloseyi, explained that the Nigerian Electricity Supply Industry (NESI) said it was not contemplating any tariff increase as none of the industry operators is pressing for 100 per cent increase in electricity tariff.

    This clarification, according to the statement was due to a media report (not The Nation) that created the impression that NERC was considering applications from DisCos requesting for 100 per cent increase in electricity tariff.

    The statement reads: “Contrary to this wild and speculative media report, NERC has not received any request for 100 per cent increase in tariff from any electricity industry operator as most of them are at this moment pre-occupied with the challenges of improvement in service delivery imposed on them by the existing tariff regime.

    “The Commission as well as the industry is responsible enough to appreciate the state of the economy, level of power generation, how Nigerians are coping and would, therefore, not make any decision that could further aggravate the challenges faced by the power sector and the economy.

    “Critical stakeholders in the economy are further advised not to be quick in joining the fray by reacting to baseless media speculation thereby lending credence to rumours and wild imaginations.”

  • Court nullifies electricity tariff hike

    Court nullifies electricity tariff hike

    The Federal High Court, Lagos Division, on Wednesday nullified the increment in electricity tariff announced on December 21 last year by the Nigerian Electricity Regulatory Commission (NERC).

    Justice Mohammed Idris ordered NERC to revert to the former tariff and restrained it from further increasing electricity tariff “unless it complies strictly with the relevant provisions of the Electricity Power Sector Reform Act (EPSRA) 2005.”

    The judge delivered the judgment in a suit filed by human rights lawyer, Mr. Toluwani Yemi Adebiyi, challenging the increment.

    Justice Idris described NERC’s action as “procedurally ultra vires, irrational, irregular and illegal,” and awarded the sum of N50,000 in the plaintiff’s favour.

    In deciding the substantive suit, the court relied on Sections 31, 32 and 76 of the EPSRA, and held that NERC “acted outside the powers conferred on it by the Act and failed to follow the prescribed procedure.”

    The court added that NERC failed to show that it acted in due obedience to the prescribed procedures and that “there is no evidence that NERC complied with Section 76(6)(7)and (9) of the EPSRA Act.”

    “Of all the legal requirements, it appeared that the only one complied with by NERC was that it announced the new tariff in the newspapers.

    “It is clear from the affidavit evidence that the increase in tariff was done by NERC in defiance of the order of this court made on May 28, 2015 which directed parties in the case to maintain the status quo.

    “The law is that every person upon whom an order is made by a court of competent jurisdiction must obey it, unless and until the order is discharged and set aside at the Appeal Court.

    “The tariff increase from July 1, 2015 was done in breach of the ‘status quo’ order. NERC’s action was therefore clearly hasty, reckless and irresponsible,” Justice Idris said.

    The judge berated NERC for breaking the law and inviting anarchy.

     

  • Reps stay action on NERC board report

    Reps stay action on NERC board report

    The House of Representatives yesterday stepped down the report of the investigative public hearing on the motion titled: “Planned Payment of N2.7 billion by the Board of the Nigerian Electricity Regulatory Commission to its Members.”

    This is the second time within one week that the report laid by the Daniel Asuquo-headed House Committee on Power was stepped down.

    The report was laid before the House by the committee on May 17  while the Order Papers of both and published in the  Order Papers of yesterday and the day before, yet it was stepped down.

    Though a lawmaker who spoke on condition of anonymity said the report is being frustrated by “ a  mafia” within the National Assembly, other factors may be responsible for the non consideration.