The Nigerian Electricity Regulatory Commission has slammed a fine on a power firm, PIPP LVI DisCo Limited, for supplying electricity to customers of Eko Electricity Distribution Company without approval.
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NERC said PIPP, which was issued an electricity distribution licence, engaged in the distribution or trading of electricity outside its approved distribution area.
The commission said it received a complaint from EKEDC to the effect that PIPP had encroached on its distribution network and tampered with its distribution infrastructure, adding that it conducted a site investigation to verify EKEDC’s claim.
It said the investigation revealed that PIPP had violated condition 7{ 1)(b) of the terms and conditions of its licence by supplying electricity to some customers without its approval.
NERC said, “A Notice of Intention to Commence Enforcement dated 30 November 2018 was issued to PIPP by the commission, outlining PIPP’s breach of condition 7(1)(b) of the terms and conditions of its distribution licence.”
It said the firm was also notified of its failure to apply for an amendment of its licence or obtain the commission’s approval before entering into a supply arrangement and supplying power to the customers.
It said, “The chairman of PIPP wrote a letter dated 14 December 2018 requesting for an extension till January 2019 to enable them to respond to the issues raised in the NICE.
“The chairman of PIPP informed the commission that PIPP was ‘currently engaging with EKEDC with a view to finding an amicable resolution’.
“The commission granted PIPP request and granted an extension till 1 February 2019 for their response to the NICE. PIPP failed to respond to the NICE by the extended deadline of 1 February 2019.”
The commission, therefore, ordered the immediate suspension of electricity supply to the customers “as this supply is in contravention of the law.”
It said, “PIPP shall compensate EKEDC for loss of revenue for each day electricity was supplied to the customers.
“PIPP is hereby fined in accordance with section 75 of EPSRA the sum of N10, 000 for each day that electricity was supplied to the customers. The fine shall continue until the date of full compliance with this order.”
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