The Nigerian Electricity Regulatory Commission has said that there would be a verification of every financial document submitted by the eight electricity distribution companies currently facing regulatory actions for failing to abide by the terms of the Electric Power Sector Reform Act 2005.
NERC, who disclosed this in a follow-up notice on the regulatory action made available to journalists, further disclosed that the Central Bank of Nigeria and the Federal Inland Revenue Services would be invited to verify the financial documents submitted by the eight agencies under scrutiny.
Warning that it would not hesitate to prosecute directors of any of the Discos guilty of submitting false or misleading documents on their finances, the regulatory body stated that the Discos would within 60 days from the date of receipt of the cancellation notice, write to it stating reasons why their licences should not be cancelled in accordance with Section 74 of the electricity industry law.
The Discos under NERC’s regulatory scrutiny includes Abuja; Benin; Enugu; Ikeja; Kaduna; Kano; Port Harcourt and Yola.
NERC further reiterated that the affected Discos must respond to its queries with their written responses, addressing the issue of optimal utilisation of resources and efficient operation imposed by sections 32 and 76 of EPSRA on or before December 7.
NERC said, “Discos are the designated revenue collection agents for the entire value chain in Nigeria Electricity Supply Industry as they interface with end-use customers.
“The eight Discos have been unable to meet the minimum remittance thresholds specified in the minor review and minimum remittance order and the commission, therefore, requires that they provide the following information along with their written response to the cancellation: monthly balances in their revenue accounts from date of takeover to date; contracts with all revenue collection agents; monthly remittances by all collection agents from date of appointment to date along with fees paid by the Disco to the collection agents; details of bilateral contracts and willing buyer/willing seller arrangements along with monthly revenue made from these arrangements.”