NERC queries 26 GENCOs

By Musa Adamu

Following completion of an audit exercise of its licensees, the Nigerian Electricity Regulatory Commission (NERC) on has ordered 27 power generation companies to within the next 30 days provide justification why their licences should not be cancelled.

The notice for cancellation of licensees posted on the Commission’s website on yesterday was sequel to the discovery through an audit exercise that the affected firms could not meet the terms and conditions for their licences.
According to the post, the notice contains 63 generation and distribution companies rated as category one, saying they are in operations and have no issue with the commission.
It said: “Forty other firms in categories one to four will, however, have to justify their continued ownership of their licences or get it withdrawn within the next 30 days to 12 months.

“In category two are those licensees that have ceased operations. These are CET Power Projects been promoted by West African Portland Cement Company, Ewekoro, Ogun State and Contour Global Solutions of Nigeria Bottling Company of Apapa, Lagos State.”
The Commission, in its notice indicated that it would immediately begin the process of cancellation of these licences in line with clause 17 of the Electric Power Sector Reform Act of 2005.
It further said 13 other generation firms in category three are were not in operations but had substantially satisfied their milestones.

It listed These companies to include Ethiope Energy; Supertek Nigeria; Mabon Energy; Bresson AS; Hudson Power; Knox J & L; Tower Power, Abeokuta; Zuma Energy Nigeria transferred to Itobe Coal 1, 2, 3 and 4 firms
Others in this category are MBH Power; Delta Electric Power; Wedotebary Nigeria; Century Power Generation and Supertek Electric.
It explained those in this category would be required to satisfy their outstanding milestones and start construction within the next 12 months, failure which it would commence the process for withdrawal of their licences.

According to the commission, in the 4th category are five power generation firms that are not in operations and have not substantially satisfied their milestones.
“They have 30 days to convince the Commission against withdrawal of their licences. In this category are ICS Power; Anita Energy; Ibafo Power Station; Minaj Holdings and Gateway Electricity.

“There are other 19 electricity generation firms in category five that are “not in operation and are not submitting quarterly reports to the Commission. They would be required to, within 30ays provide justification for their licences or get it revoked.”
The Commission further said licensee listed in categories two are hereby notified of its intention to commence the process for the cancellation of their licences on the grounds that the licensees had ceased operations.

“Those in categories four and five have been notified of the intention of the Commission to commence the process for the withdrawal of their licences on the grounds that these companies have failed to commission their licensed generating power station within three years from the date of their licences.

“Licensees in categories two would only be notified of the Commission’s intention to cancel their licences, while those in categories four and five have 30 days moratorium to convince the Commission against the withdrawal of their licences. Firms in category three have 12 months moratorium to start construction.”

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