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NERC fines TCN N47.6m for infractions

By on December 10, 2016

The Nigerian Electricity Regulatory Commission has slammed a N47.6m fine on the Transmission Company of Nigeria for various regulatory breaches.

According to the commission, the fine is also due to the company’s failure to submit its 2013 and 2014 audited financial statements.

This is coming as the 11 power distribution companies in the country have declared that the Nigerian electricity industry is on the verge of collapse as a result of the poor tariffs being charged consumers.

Although they did not call for an increase in the electricity tariffs, the Discos warned that the sector was under grave threat on account of various operational challenges occasioned by the exorbitant and unstable naira to dollar exchange rate.

On the fine against the TCN, NERC stated that the company had up to two weeks from December 2, 2016 when the disciplinary order was signed by its acting Chairman, Dr. Tony Akah; and the General Manager, Legal, Licensing and Enforcement, Mrs. Olufunke Dinneh, to pay up.

It also said the fine would attract a five per cent interest every day after the due date.

NERC said the TCN failed to submit its audited financial reports, thus violating Section 63 (1) of the Electric Power Sector Reform Act, 2005, which stipulated that “a licensee shall comply with the provisions of its licence, regulations, codes and other requirements issued by NERC from time to time.”

It said that other infractions by the TCN were contained in its Directive 160, which had to do with the conditions of the company’s transmission licence.

NERC stated that it had reminded the TCN several times of its obligations to submit audited financial accounting statements for 2013 and 2014, but it persistently refused or neglected to comply with the requests.

 

[Punch]