The Nigerian Electricity Regulatory Commission (NERC) recently issued an Order against PIPP LVI Disco Limited (“PIPP”) for encroaching on the distribution network of Eko Electricity Distribution Company (“Eko Disco”) and violating the terms of the distribution licence it (PIPP) obtained from the NERC.
The NERC in its ORDER NO: NERC/GL/168 which was signed by the Commission’s Chairman, Professor James Momoh and its Commissioner for Legal, Licensing and Compliance, Mr. Dafe Akpeneye, ruled it found PIPP culpable of breaching condition 7( 1)(b) of the terms and conditions of its licence by encroaching on Eko Disco’s distribution network and tampering with Eko Disco’s distribution infrastructure.
The Commission similarly found that PIPP failed to comply with section 73 of the Electric Power Sector Reforms Act which required PIPP to seek an amendment of its licence before supplying electricity to customers outside of the areas for which it was granted a distribution licence.
PIPP was also said to have failed to respond to a Notice of Intention to Commence Enforcement (“NICE”) dated 30 November 2018 issued to PIPP by the NERC, which outlined PIPP’s infractions.
Subsequent to the NERC’s findings, the Commission has ordered an immediate suspension of electricity supply by PIPP to customers outside of the areas for which it was licensed.
The Commission also ordered PIPP to pay a compensation to Eko Disco for loss of revenue for each day electricity was supplied to customers outside of PIPP’s licence area in contravention of the law.
In addition, PIPP is to pay a fine of NGN 10,000 for each day that electricity was supplied to the customers outside of its licence area and the fine is to continue until the day of compliance with NERC’s ORDER NO: NERC/GL/168.
You can download the full NERC Order here.