Some electricity firms are at the verge of losing their licences three years after privatisation for failing to comply with the rules and regulations in the power sector, The Guardian reports.
This is because many electricity firms are contravening the Nigerian Electricity Regulatory Commission (NERC) Electricity Industry (Enforcement) Regulations 2014, which specified strict action against any form of unruliness in the sector, even as many are yet to pay over N345 million cumulative fines imposed by NERC. Lack of compliance and adherence to industry rules are some of the reasons weakening the capacity of NERC to effectively regulate the industry and institute credible electricity operations in the country.
Virtually all the electricity companies in Nigeria have at one point or another been fined by NERC, except for a few, many of them adamantly refused to pay the fines, which under the law is supposed to attract additional five per cent daily upon the expiration of the grace period. A source in NERC however indicated that it will no longer be business as usual for the electricity firms this year, as the Commission will be strictly implementing the provisions of the Electricity Industry (Enforcement) Regulations 2014.