A Review of the Nigerian Energy Industry

NERC warns against illegal generation, distribution of electricity

Sam Ikeotuonye

04 July 2018, Sweetcrude, Lagos — The Nigerian Electricity Regulatory Commission, NERC, has warned against illegal generation and distribution of electricity in any part of the country, emphasising that “the generation and distribution of electricity is a regulated activity that is subject to the licensing requirements stated in section 62 of the Electric Power Sector Reform Act (EPSRA)”.

It issued the warning in a public notice on its website in reaction to a publication by Eko Electricity Distribution Company. EKEDP’s, cautioning “against the proposed unauthorised inauguration of the Sura Independent Power Plant by Sura Independent Power Limited (SIPL) for the supply of electricity to Sura Shopping Complex, a service area that falls within EKEDC’s distribution network area”.

NERC said in the public notice, “The attention of the Nigerian Electricity Regulatory Commission has been drawn to a publication by Eko Electricity Distribution Company Plc.

“The Commission hereby notes that the generation and distribution of electricity is a regulated activity that is subject to the licensing requirements stated in section 62 of the Electric Power Sector Reform Act.

“The Commission notes further that it has neither issued a generation nor distribution licence to SIPL for the operation of the Sura Independent Power Plant.

“The other companies that have so far been licensed by the Commission to engage in the generation or distribution of electricity within EKEDP’s distribution network area were licensed on the basis of permissible grounds specified in EPSRA”.

The Commission enjoined all parties that are interested in carrying out a regulated activity in the Nigerian Electricity Supply Industry to ensure that their activities are executed in strict compliance with the requirements of EPSRA and in compliance with safety regulations governing the electricity industry.

It directed that no further steps should be taken in the development of SIPL until further directives are issued to that effect, advising all parties in the case to approach the Commission for the resolution of this matter.

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