Regulatory hammer of the Nigerian Electricity Regulatory Commission (NERC) has fallen on four electricity distribution companies over failure to treat
customers’ complaints and submit statutory quarterly reports in breach of their licensing terms and conditions, provisions of the Electric Power Sector Reform Act 2005 and regulations of the Commission.
The Commission in various directives communicated to the affected electricity distribution companies said that the erring licencees should pay fines of various sums within two weeks, beginning from July 25, 2016 when the directives were signed by the acting Chairman, Dr. Anthony Akah, mni, and General Manager, Legal, Licensing and Enforcement, Mrs. Olufunke Dinneh, after which the fines attract five per cent daily interests until remedial steps are taken.
Two of the erring companies, Port Harcourt and Enugu electricity distribution companies were sanctioned for their failure to submit quarterly reports on their key performance indicators, whereas Ibadan and Ikeja electricity distribution companies were fined over failure to attend to customers’ complaints severally referred to them.
According to Directive 152, Ibadan Electricity Distribution Company (IBEDC) flouted the Electric Power Sector Reform (EPSR) Act 2005, its licensing terms and conditions as well as NERC Customer Complaints Handling: Standards and Procedures (CCHSP) Regulation 2006.
“The Commission received several complaints directly from electricitycustomers in IBEDC operational jurisdiction, based on which same was forwarded via letters dated October 27, 2015 and April 15, 2016 to IBEDC’s Customer Care Unit for resolution, in line with CCHSP, 2006.”
“However, IBEDC failed or refused to comply with the Commission’s request/directive to resolve the customer complaints in accordance with the provisions of the CCSHP 2006,” the directive said.
IBEDC was subsequently fined N10, 000.00 on each of the three grounds of misdemeanour beginning from April 22, 2016 till July 25, 2016, which totalled N2, 850, 000 due for payment within two weeks beginning from the July date when the directives was signed.
In a similar development, Ikeja Electricity Distribution Company (IKEDC) was in Directive 151 found guilty on three grounds of violating its licensing terms and conditions, EPSR Act 2005 and CCHSP that compel it to obey every directives of the Commission, treat customers complaints within a stipulated time frame as well as oblige the regulator every information sought from the company.
The company was, therefore, fined N10, 000. 00 per day on each of the three ground of misdemeanour beginning from April 22, 2016 till July 25, 2016 when the directive was signed.
“Failure to pay the fines within stipulated time shall attract additional interest of five per cent per day until the total fine is paid,” the directive said.
Both Enugu (EEDC) and Port Harcourt (PHEDC) electricity distribution companies were found liable for their failures to submit quarterly reports on their key performance indicatiors which run contrary to terms and conditions of their licence, Section 63 (1) of the EPSR Act 2005.
Directive 146 to PHEDC said, “By failing to submit third quarter report in 2015, the Commission hereby fines PHEDC N10, 000 per day from July 15, 2015 to July 25, 2016 giving a total of N3, 760, 000. 00; by failing to submit fourth quarter report in 2015 the Commission fines PHEDC N10, 000 per day from October 15, 2015 to July 25, 2016 giving a total N2, 840, 000; by failing to submit first quarter report in 2016 the Commission fines PHEDC N10, 000 per day from January N10, 000 per day giving a total N1, 920, 000.”
Grand total of the fines payable by PHEDC within the next two weeks beginning from July 25, 2016 when the directive was signed is N8, 520, 000.
Whereas EEDC is fined a grant total of N13, 190, 000 for failing to submit quarterly reports on four different instances and failed to heed warnings and overtures from the Commission to submit reports.
Directive 148 gave a breakdown of fines imposed on the EEDC thus: “by failing to submit second quarter report 2015, the Commission hereby fines EEDC N10, 000 per day from April 15, 2015 to July 25, 2106 giving a total of N4, 670, 000; by failing to submit third quarter report in 2015, the
Commission fines EEDC N10, 000 per day from July 15, 2016 to July 25, 2016 giving a total of N3, 760, 000; by failing to submit fourth quarter report in 2015 the Commission fines EEDC N10, 000 per day from October 15, 2015 to July 25, 2016 giving a total of N2, 840, 000; by failing to submit first quarter report in 2016 the Commission fines EEDC N10, 000 per day from January 15, 2016 giving a total of N1, 920, 000.”
However, Akah said that fines imposed on the erring companies were in line with the Commission’s schedule of fines and EPSR Act 2005. He also advised electricity customers to treat staff of discos with respect and should not take law into their hands in resolving disputes with their service providers.