NERC Slams Fresh N21m Fine on Ibadan Disco for Regulatory Breach

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Chineme Okafor in Abuja
The Nigerian Electricity Regulatory Commission (NERC) has fined the Ibadan Electricity Distribution Company (IBEDC) a fresh regulatory fine of N21.2 million for refusing to address various electricity customer complaints referred to it or obey the decisions of its Forum Office on same.

NERC regards the Forum Office as a second level in its redress mechanism.
It is where complaints from electricity customers that were not resolved at the customer care unit of electricity distribution companies (Discos) are referred to for acceptable settlement.

It said in a statement yesterday that Ibadan Disco failed to comply with the decisions of the Forum Office from February 23, 2015 when the first directive was given to it till August 5, 2016 when it had to take a regulatory action against it.

Ibadan Disco recently fined N2.8 million by the regulator for similar offence which occurred in April 2016.

NERC however said in the statement: “Following the failure of IBEDC to comply with the request and directive, the commission issued a notice to commence enforcement to IBEDC, on June 9, 2016 to show cause within 10 days, why enforcement action should not be taken  against it on four grounds of misdemeanour.

It said Ibadan Disco was found to have violated all these four grounds after it refused to comply with the Forum’s decisions in respect of installations of electricity transformers and energising communities.

NERC said Ibadan Disco claimed unavailability of funds and capital intensive nature of such projects were the reasons for non-compliance.

It said the Disco also failed to comply with the timeline within which to implement the directives of its Forum as well as the reporting compliance obligation as stipulated in the CCHSP regulation 2006.

It said the total of N21, 200, 000 levied on Ibadan Disco shall be paid within two weeks starting from August 5, 2016 after which the fine attracts five per cent interest daily until the total fine sum is paid.

It further stated: “The fines imposed notwithstanding, IBEDC shall comply with all the directives of the NERC Forum and shall communicate to the commission its electricity transformer implementation roll out plan, and the date of the commencement within two weeks from August 5, 2016.”