Another electricity distribution company, Ikeja Distribution Company (Disco), has come under the regulatory hammer of the Nigerian Electricity Regulatory Commission (NERC). for flagrant abuse of processes in its makeshift electricity metering plan, the Credited Advance Payment on Metering Initiative (CAPMI).
The NERC on Sunday in Abuja disclosed that it had fined Ikeja Disco the
sum of N131.4 million, following its discovery of the company’s
“flagrant breaches” of its CAPMI order, the enabling act of the
commission and terms and conditions of its licence.
The commission in a statement from its head of public communication,
Dr. Usman Arabi, noted that the fine on Ikeja Disco was contained in an
order it issued to it on September 29, 2015.
NERC had recently fined Abuja Disco for similar operational abuses.
Arabi however explained that the fine was a follow up to an earlier ‘notice of commencement of enforcement action’ which it issued to the electricity distribution company alongside 10 others, over ‘manifest and flagrant breaches observed by the commission’ in the implementation of the metering initiative.
According to him: “The seven days granted to show cause why enforcement
action should not be commenced expired on August 24, 2015 and IKEDC has
failed, refused and or neglected to respond to the manifest and
flagrant breaches observed by the commission, or provide a satisfactory
response.”
“It is hereby ordered that IKEDC shall with immediate effect from the
date of this order; comply with the CAPMI order and forward evidence of
full compliance to the commission within two weeks.
“IKEDC shall pay an administrative fine of N250 per minute of every
hour of the day for a period of one year from September 29, 2014 to
September 28, 2015 for non- compliance with CAPMI order, with a
moratorium from May 14, 2013, being the date of the CAPMI order, to
September 28, 2014,” Arabi added in the statement.
He further explained that the Disco has then been ordered to pay an
administrative fine of N500 per minute of every hour of the day where it
continues in default of compliance from October 12, 2015 until
compliance.
Arabi noted that by the Disco’s action, it violated Section 63(1) of
the Electric Power Sector Reform (EPSR) Act 2005, Section 2(1) of Terms
and Conditions of its licence as well as NERC’s order CAPMI.
He said CAPMI was an initiative of the commission to assist the
electricity distribution companies close the wide metering gap in the
Nigerian Electricity Supply Industry (NESI) and was introduced following
a nationwide study conducted by NERC which revealed that more than 50
per cent of electricity consumers are not metered but are on estimated
billings.
The initiative, according to him, permits willing electricity customer
to pay for meter which should be supplied within 45 days after payment
is made. The customer is thereafter refunded his money over a period of
time through a rebate or reductions in the fixed charge component of
electricity tariff.
The commission, Arabi added, initiated the scheme following complaints
of lack of funds to meter customers by the electricity distribution
companies, noting that wide metering gap accounts for high incidences of
customers’ complaints, commercial losses and high operating cost in
NESI.
Arabi equally explained that over one year of CAPMI introduction, NERC
conducted public consultations which revealed the reluctance of the
Discos to neither provide meters nor implement CAPMI.
He stated that a ‘notice of commencement of enforcement action’ was
thereafter issued on August 17, 2015, mandating Ikeja Disco and 10
others to explain within seven days why disciplinary action should not
be taken against them following their refusal to implement CAPMI or
provide alternative metering scheme for their customers.
The fine, he added, was subsequently imposed following the inability of
Ikeja Disco to provide explanation for acting in flagrant disobedience
to the EPSR Act 2005, terms and conditions of its licence and failure to
respond to the enforcement notice.Sourced from thisdaylive.com
No comments:
Post a Comment