A Review of the Nigerian Energy Industry

NERC to assess power firms’ performance June ending

nerc120 June 2014, Abuja – The National Electricity Regulatory Commission will commence its planned assessment of the power distribution, generation and transmission companies by the end of this month.

The planned assessment is, however, causing panic in the sector, especially for power firms that have yet to put their reports in order after the commission had directed them to do so.

The Chairman, NERC, Mr. Sam Amadi, who disclosed this to our correspondent in a telephone interview on Thursday, said the firms must submit tripartite reports on their technical, commercial and customer care status.

“By end of this month (June), we shall be assessing the power firms to see if they meet the set requirements and we will publish the names of the firms that are found wanting,” he said.

Amadi stated that although sizeable numbers of the reports were to be prepared on monthly basis, some of the firms had a quarterly timetable to prepare their reports.

The NERC boss explained that aside having their names published in the dailies, errant power firms would be fined, adding that the fines could be on per minute basis for the period of default.

The prevailing uncertainty in the nation’s power sector caused by the dwindling electricity supply situation and poor investment performance, among others, has been generating concerns for the power sector regulator.

This situation has heightened tension in the Federal Ministry of Power and NERC has had to intervene to avert further crisis.

The commission had last month ordered all electricity distribution companies to supply the details of their operational database for proper assessment and monitoring of their activities.

But Amadi explained that the assessment would not be limited to the distribution companies alone.

He maintained that the submission of the database would help NERC to assess the companies’ key performance indicators as enshrined in the Electricity Power Sector Reform Act, 2005

Amadi had said last month that the submission of the database details would also allow the commission to carry out proper network data assessment.

NERC had insisted that the network data assessment would help to establish a data bank of all existing power assets, monitor, track and report performances. This is expected to facilitate the expansion and development of the power networks.

Our correspondent learnt that the commission was ready to sanction errant Discos, but needed to justify its actions; hence the call for the submission of the database.

This is the first time the commission is assessing the utilities on their Key Performance Indicators since private investors took over the companies about six months ago.

According to the EPSR Act 2005, any person who fails or refuses to furnish the commission with a return or supply information in the manner and time prescribed, or gives false or incomplete information has committed an offence and is liable on conviction to pay a fine.

NERC had intimated the chief executive officers of the firms during a meeting in April of the need to comply with the commission’s request on submission of baseline statistics on the distribution assets they took over.

It was gathered that less than 30 per cent of the firms had shown willingness to comply with NERC’s demand.



– The Punch

In this article

Join the Conversation