NERC Fines Afam Power, Eko Disco N66.6m

electricityA view of the power lines as evening settles. Photo by David McNew
  • NERC Fines Afam Power, Eko Disco N66.6m

Following their failures to submit audited financial reports for 2013 and 2014, Afam Power Plc and the Eko Electricity Distribution Company have been fined N66.6m by the Nigerian Electricity Regulatory Commission.

According to NERC, Afam Power breached its Directive 162 when it failed to file audited financial reports for 2014 and was subsequently liable to pay N18.51m in fines.

It also stated that the EKEDC was in violation of its licensing terms and other operating conditions as contained in Directive 163 for its late submission of the 2013 and non-submission of 2014 audited financial reports.

The company is, therefore, liable to pay N48.09m fine, NERC said.

Both directives were signed by the Acting NERC Chairman, Dr. Anthony Akah, and the General Manager, Legal, Licensing and Environment, Mrs. Olufunke Dinneh.

NERC said it expected the companies to pay their fines within two weeks beginning from December 9, 2016, when the directives were signed.

The commission noted that the fines would attract five per cent interest daily after the two-week moratorium given the firms, adding that NERC might subsequently consider further disciplinary action against the power companies.

NERC, in the directives to the firms, stated, “Failure by both companies to file their audited financial reports as and when due, according to Directives 162 and 163, violates Section 63 (1) of the Electric Power Sector Reform Act, 2005; and Conditions 4 (1) and 6 of their respective electricity generation and distribution licences.

“Each ground of violation attracts N10,000 fine daily, totalling N30,000, beginning from April 1, 2014 for the 2013 financial reports for EKEDC, and April 1, 2015 for the 2014 financial reports for both Afam and EKEDC.”

NERC in its directives to Afam and EKEDC said both companies defied several overtures and reminders sent to them to file their audited financial reports for the periods under review, but that the reminders were unheeded.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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