The Nigerian Electricity Regulatory Commission (NERC) has stated that Electricity Distribution Companies (DisCos) were given a 15-year license as against the 10 years being widely reported.
It said although they were initially given 10 years, this was extended by another five years.
The Commission’s Chairman, Engr. Sanusi Garba made the disclosure at the Nigeria Electricity Supply Industry (NESI) Market Participants and Stakeholders Roundtable theme ‘Nesi Privatization and its 10-year Milestone: The journey so far, Opportunities and Prospects’ held in Abuja.
He failed to give details on the reason for the extension but noted that the DisCos licenses will expire in 2028.
“The DisCos were initially given a 10-year license but upon privatisation, the Commission extended their license by five years. So the DisCos have a 15-year license. So, their license will expire five years from now which is 2028,” he said.
However, he stated that the regulator adopted a Key Performance Indicator( KPI) for all licensees adding that license of DisCos who do not comply with the terms and conditions will be withdrawn.
“It is important to state that as a regulator of the industry, we have KPIs for all the licensees and the regular can withdraw this license for non-compliance of the KPIs and non-compliance to the license terms and conditions,” he stressed.
Already, he said revocation notices have been issued to some DisCos adding,”and in line with the provisions of the law and our regulations, we are currently reviewing the responses of these DisCos to the notice.”
On his part, the Chairman Mainstream Energy Solutions Limited (MESL) Col Sani Bello Rtd identified lack of cost-reflective tariff, under-investment, and energy theft among others as major issues bedeviling the sector.