PHED Gets Fined N37.5m By NERCThe Nigerian Electricity Regulatory Commission (NERC) has fined the Port Harcourt Electricity Distribution Company (PHED) N37.5 million for allegedly failing to submit three years audited financial account.
The disco was said to have defaulted since 2013 when it was privatised and handed over to new owners.
In a directive signed by the Acting Chairman, Dr. Anthony Akah, and General Manager, Legal Licensing and Enforcement, Mrs. Olufunke Dinneh, NERC said that the firm had consistently flouted its regulation which require it to submit yearly audited financial reports.
It said that PHED had flouted at least four of its licensing conditions for failing to submit two years financial reports.
Each of the four grounds of infringement attracts N10,000 fines per day beginning from April 1, 2014 when the offences were first brought to the utility firm’s attention.
Akah noted, among others: “For failing to provide the commission with the requested financial information, which is a breach under Condition 4 of the Distribution Licence Terms and Conditions” and it is hereby fined ten thousand naira per day from April 1, 2014. The fines run concurrently from April 1, 2014 being the date the first financial report was due.
“Directive 158 further stipulates that the N37,520,000 being the total fine sum should be paid within two weeks counting from October 24, 2016 when Directive 158 was signed.
“However, the utility company is expected to comply with the submission of its financial report within the stipulated time besides paying the fine sum within two weeks after which the fine runs at five per cent interest rate until it is liquidated.”
In another development, the board of Enugu Electricity Distribution Company (EEDC) has embarked on organisational restructure.
Mr. Robert Dickerman has stepped down as the Managing Director (MD)/Chief Executive Officer (CEO) effective October 27, 2016 while Srinivas Jayaraman, who was until recently the Deputy Managing Director/Chief Operating Officer, has been appointed the Acting MD/CEO.