Nigerian Electricity Regulatory Commission (NERC) has imposed a N37.52 million fine on the Port Harcourt Electricity Distribution Company (PHEDC) over its failure to submit audited financial report since 2013, when the current management of the company came onboard.
This was contained in a statement released Tuesday and signed by Usman Abba Arabi, NERC’s head of public affairs department.
The Commission in Directive 158 signed by Anthony Akah, acting chairman of NERC, and Olufunke Dinneh, general manager, legal licensing and enforcement, said PHEDC had consistently flouted its licensing conditions, which require it to submit yearly audited financial report, and that subsequent reminders from the Commission to obey this licensing conditions was unheeded.
NERC in the directive said that PHEDC has flouted at least four of its licensing conditions for failing to submit two years financial reports.
Each of the four grounds of infringement attracts N10, 000 fine per day, beginning from April 1, 2014 when the offences were first brought to the utility firm’s attention.
The directive mentioned four infringements committed by PHEDC, stating that “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, PHEDC is hereby fined Ten Thousand Naira per day, from April 1, 2014.”
For failing to comply with Condition 6 (7) of the Electricity Distribution Licence terms and conditions granted PHEDC by the Commission, PHEDC is hereby fined Ten Thousand Naira from April 1, 2014 till the date of this Directive.”
NERC also affirmed that “For failing to comply with Conditions 23 (1) of the Distribution Licence Terms and Conditions granted PHEDC by the Commission, PHEDC is hereby fined Ten Thousand Naira per day from April 1, 2014.”
The company was further 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 Ten Thousand Naira per day from April 1, 2014.”
The fines run concurrently from April 1, 2014 being the date the first financial report was due.
Directive 158 further stipulates that the N37, 520, 000 being the total fine sum should be paid within two weeks counting from October 24, 2016 when Directive 158 was signed.
However, the utility company is expected to comply with the submission of its financial report within the stipulated time besides paying the fine sum within two weeks after which the fine runs at five per cent interest rate until it is liquidated.
It may be recalled that Port Harcourt Electricity Distribution Company alongside another electricity firm were in June 2016 sanctioned over their failure to comply with the Nigerian Electricity Commission’s Forum directive on customer complaints.
Commenting on the development, Akah said “the commission expects operators in the power sector to play by the rules, and that the commission will continue to provide enabling environment for them as much as it will ensure that the rights of electricity customers are not violated.”
