NERC threatens to revoke licenses of 27 electricity generation firms

SAM AMADI OF NERC

There are indications that the Nigerian Electricity Regulatory Commission (NERC) would revoke the licences of 27 power generating companies in the country. This follows the completion of an audit exercise of its licensees.  NERC had on Tuesday, requested 27 power generation companies to, within the next 30 days, provide justification on why their licences should not be cancelled.

The notice for cancellation of licensees posted on the commission’s website on Tuesday was sequel to the discovery, through an audit exercise, that the affected firms could not meet the terms and conditions for their licences.

Contained in the notice are 63 generation and distribution companies rated as category one, who 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firms in categories one to four will, however, have to justify their continued ownership of their licences or get it withdrawn within the next 30 days to 12 months.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 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.

Thirteen other power generation firms in category three are “not in operations but have substantially satisfied their milestones.” 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 firms.

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

Those in this category will “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.

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