Discos sue govt for alleged interference with operations
• We will meet them in court, says NERC
NIGERIA’S 11 distribution companies ( Discos) have headed for the court to restrain the Nigerian Electricity Regulatory Company ( NERC) from interfering with their operations pending the proper constitution of the boards of the power firms.
The Guardian learnt that the plaintiffs, including the Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano and Port Harcourt electric companies, also asked the court to stop the Transmission Company of Nigeria ( TCN) and the National Economic Council ( NEC) from “undue” interference with their activities.
Indeed, the court order, which has been served on the Federal Government entities, is equally restraining the NERC from sending forensic auditors to the utilities except only the boards of the Discos that could order such exercise.
Since they are limited liability establishments, the Discos hinged their action on the fact that they are governed by corporate laws in line with the extant regulations of the Corporate Affairs Commission ( CAC). Coming at a time when the executive arm of government, the lawmakers as well as some stakeholders are calling for a review of the entire power sector privatisation agreement, including possible revocation of licences of the Discos, it was further gathered the move was to curtail the recurring directives from the regulators of the Nigerian electricity market, privatised in 2013.
In a telephone chat, NERC chairman, Prof. James Momoh acknowledged the development, stating that the Federal Government would address the matter in court.
“We will meet them in court, he said, adding: “The lawyers are even in front of me. So, let me not talk for the lawyers.” The regulator had recently threatened to cancel the licences of eight Discos over alleged N30.1 billion energy invoice debts for July 2019.
Prior to the current circumstance, the Federal Government had unbundled the defunct Power Holding Company of Nigeria ( PHCN) into 18 firms and sold them to private owners at $ 2.5 billion ( about N903.750 billion) in 2013 with the assets consisting of six generation companies ( Gencos) and 11 distribution companies ( Discos).