The Bureau of Public Enterprises (BPE) yesterday said there is no ongoing renewal licences for the nation’s Electricity Distribution Companies declaring that there is an existing 15 years license for the Discos -“with another 10 years renewal option”.
This was just as the agency appealed to Edo civil society groups and stakeholders in the Benin Disco area to exercise restraint and allow the company perform its functions of electricity distribution.
11 power distribution companies were granted operational licences by the National Electricity Regulatory Company (NERC) in 2003 following the federal government’s privatisation of Power Holding Company of Nigeria (PHCN).
The clarification is coming amidst sustained protest by the civil society groups against the “renewal of BEDC license” in December over alleged poor service.
Director General of BPE, Alex A. Okoh who stated this during a media parley organised by the BEDC said: “this government respect contracts and would not do anything to jeopartize the operations of companies that FGN had willingly entered into agreements with”.
According to him, “For BEDC, there is an existing 15 years NERC license- broken into 10 years plus 5 years, with another 10 years renewal option at the end of 15 years period”.
Continuing, Okoh said: “under the sale agreement, the Discos and BPE are bound by a Performance Agreements which stipulates the milestones that the core investors should achieve within a specified period”.
“This agreement is monitored periodically, but reviewed wholistically in 5 years, and the due date for the wholistic review in December 31, 2019. The issue of licensing is a different matter,” he stated.
Also, the Managing Director/CEO of BEDC, Mrs. Funke Osibodu the clarification became necessary “given the mischievous and wrong publications made by Edo Civil Society”.
