Nigerian Electricity Regulatory Commission, NERC, has imposed a fine of N37, 520, 000 million on the Port Harcourt Electricity Distribution Company, PHED, over its failure to submit audited financial report since 2013 when the new management came on board, warning other operators to play by the rules or risk sanctions.
The commission made it clear that it would continue to provide enabling environment for operators and also ensure that the rights of electricity customers were not violated.
NERC, in its directive 158 by both the Acting Chairman, Dr. Anthony Akah, and General Manager, Legal Licensing and Enforcement, Mrs. Olufunke Dinneh, respectively, said PHED had consistently flouted its licensing conditions requiring it to submit yearly audited financial report and that subsequent reminders from the Commission to obey the licensing conditions were ignored.
NERC, in the directive, said PHED had flouted at least four of its licensing conditions by failing to submit two years financial reports, explaining that each of the four grounds of infringement attracted N10, 000 fines per day beginning from April 1, 2014 when the offences were first brought to PHED’s attention.
According to NERC, “For failing to comply with the licence terms and conditions, and other regulatory instruments, which is a breach under Section 63 (1) of the Electric Power Sector Reform Act 2005, PHED is hereby fined N10,000 per day, from April 1, 2014. For failing to comply with Condition 6 (7) of the Electricity Distribution Licence terms and conditions granted PHED by the Commission, PHED is hereby fined N10,000 per day from April 1, 2014 till the date of this directive. For failing to comply with Conditions 23 (1) of the Distribution Licence Terms and Conditions granted PHED by the Commission, PHED is hereby fined N10,000 per day from April 1, 2014.”
The company was also sanctioned “for failing to provide the Commission with the requested financial information, which is a breach under Condition 4 of the Distribution Licence Terms and Conditions and it is hereby fined N10,000 per day from April 1, 2014. The fines run concurrently from April 1, 2014 being the date the first financial report was due.”
Source: vanguard
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