Public Notices

Media Contacts

Name: Usman Abba Arabi
Email: usman.abbaarabi@nerc.gov.ng

Phone: 09- 462.1408

Name: Vivian Mbonu
Email: vivian.mbonu@nerc.gov.ng
Phone: 09- 462.1408

Name: Michael Faloseyi
Email: michael.faloseyi@nerc.gov.ng 
Phone: 09- 462.1408

Notice Of Intention To Cancel And Withdraw Generation Licences Issued By The Commission

PURSUANT TO THE ELECTRIC POWER SECTOR REFORM ACT 2005

The Commission recently commenced an audit of Licences issued since the inception of the Commission in 2005. In order to conduct the audit, the Licensees were classified as either ‘Licensees in Operation,’ ‘Licensees that have Ceased Operations,’ and ‘Licensees not in Operation.’ The Commission then reviewed the Quarterly Reports submitted between the First and Last Quarter of 2014 by the Licensees Not yet in Operations, while focusing on their updates regarding the following milestones leading to the commissioning of their power plants:

 

  

  MILESTONES (TIMELINE FROM DATE OF ISSUANCE OF LICENCES 
Obtain Title Deed to Site 
Execute a Power Purchase Agreement (PPA) 

Obtain Environmental Impact Assessment (EIA) approval 

4

Execute a Fuel Supply Agreement

5 Execute an Engineering Procurement & Construction Contract
6 Conclude Financing Agreements
7 Obtain TCN approval
8 Obtain other permits
9 Site Mobilization & commencement of construction
10 Commissioning

 

The Report made recommendations to the Commission on the possible statutory/regulatory actions to be taken by the Commission to ensure that Licensees comply with the EPSR Act, the Terms and Conditions of their Licences, Regulations, Network Codes, Rules, and directives of the Commission.

Section 74 of the EPSR Act 2005, and Clause 17 of NERC Application for Licences (Generation, Transmission, System Operations, Distribution & Trading) Regulations, 2010 empowers the Commission to cancel a licence if it is satisfied that:
(i) the licence was issued through fraud or the misrepresentation or non-disclosure of a material fact; or
(ii) the licensee has willfully or unreasonably contravened any provisions of the Act that is applicable to the licence; or
(iii) the licensee has failed to comply with any term or condition of the licence the breach of which is expressly declared to render it liable to cancellation; or
(iv) the licensee becomes insolvent or is adjudged bankrupt; or
(v) the financial position of the licensee is such that the licensee is unable to fully and efficiently discharge the duties and obligations imposed by the licence.

Furthermore, Clause 18 of NERC Application for Licences (Generation, Transmission, System Operations, Distribution & Trading) Regulations, 2010 clearly states that the Commission may withdraw a licence for a generating station not yet operational if the licensee:
(i) obtained the licence through fraud or the misrepresentation or non-disclosure of a material fact; or
(ii) willfully or unreasonably contravenes any provisions of the Act, applicable Legislations, Regulations of the Commission, Market Rules, Network Codes, Rules and Regulations;
(iii) fails to comply with the milestones upon which the licence was issued;
(iv) contravenes any term or condition of the licence;
(v) becomes insolvent or is adjudged bankrupt; or
(vi) fails to commission the licensed generating station listed in the Schedule within three (3) years from date of grant of licence.

Following a review of the Report, the Commission at its 9th Formal Regulatory Meeting, held on July 7, 2015, resolved as follows:

I) LICENSEES IN OPERATION

Transmission Company of Nigeria Plc. (System Operations)  xxxiii  Olorunsogo Power Plc. 
ii  Transmission Company of Nigeria Plc. (Transmission)  xxxiv Omotosho Power Plc. 
iii  Abuja Electricity Distribution Company Plc.  xxxv  Nigerian Agip Oil Co. Ltd. 
iv  Ikeja Electricity Distribution Company Plc.  xxxvi Shell Petroleum Development Co. Ltd. 
Jos Electricity Distribution Company Plc.  xxxvii  Paras Energy & Natural Resources Development Ltd. 
vi  PH Electricity Distribution Company Plc.  xxxviii  African Oxygen & Industrial Gases Ltd. 
vii  Eko Electricity Distribution Company Plc.  xxxix  Tower Power Utility Ltd. 
viii  Ibadan Electricity Distribution Company Plc.  xl  ContourGlobal Solutions (Nigeria) Ltd. (NBC Benin) 
ix  Kano Electricity Distribution Company Plc.  xli  ContourGlobal Solutions (Nigeria) Ltd (NBC Ikeja) 
Yola Electricity Distribution Company Plc.  xlii  CET Power Projects (WAPCO Sagamu) 
xi  Kaduna Electricity Distribution Company Plc.  xliii  CET Power Projects (NBL Iganmu) 
xii  Benin Electricity Distribution Company Plc.  xliv  CET Power Projects (Tinapa) 
xiii  Enugu Electricity Distribution Company Plc.  xlv  Akute Power Ltd. 
xiv Sapele Power Plc. xlvi Coronation Power & Gas Ltd.
xv Ughelli Power Plc. xlvii Ikorodu Industrial Power Ltd.
xvi Egbin Power Plc. xlviii First Independent Power Co. Ltd. (Eleme)
xvii Afam Power Plc. xlix First Independent Power Co. Ltd. (Trans Amadi)
xviii Shiroro Hydro Electric Plc. l First Independent Power CO. Ltd. (Omoku)
xix Kainji Hydro Electric Plc. (Kainji) li Ibom Power Ltd.
xx Kainji Hydro Electric Plc. (Shiroro) lii Notore Power Ltd.
xxi Geregu Power Plc. liii DIL Power Plc (Obajana factory)
xxii Calabar Generation Co. Ltd. liv DIL Power Plc (Ibese factory)
xxiii Egbema Generation Co. Ltd. lv Shoreline Power Co. Ltd. (WAPCO Sagamu)
xxiv Benin Generation Co. Ltd. lvi Ilupeji Power Ltd. (Academy Press, Ilupeju)
xxv Gbarian Generation Co. Ltd. lvii Eleme Petrochemical Co. Ltd.
xxvi Omoku Generation Co. Ltd. lviii Energy Co. of Nigeria Ltd. (Nestle, Agbara)
xxvii Omotosho Generation Co. Ltd. lix Unipower Agbara Ltd. (Unilever, Agbara)
xxviii Geregu Generation Co. Ltd. lx Island Power Ltd.
xxix Olorunsogo Generation Co. Ltd.  lxi  Energy Company of Nigeria Plc. (IEDN) 
xxx  Alaoji Generation Co. Ltd.  lxii  Isolo Power Generation Ltd. 
xxxi Ogorode Generation Co. Ltd. lxiii PZ Power Company Ltd. (Aba)
xxxii Nigerian Electricity Supply Co. Ltd (issued by Min. of Power & Steel)    

 

RESOLUTION OF THE COMMISSION – These Licensees are hereby reminded that failure to comply with the Terms and Conditions of their Licences shall attract appropriate sanctions by the Commission.


II) LICENSEES THAT HAVE CEASED OPERATIONS
i. CET Power Projects (WAPCO Ewekoro)
ii. ContourGlobal Solutions (Nigeria) Ltd (NBC Apapa)

RESOLUTION OF THE COMMISSION - The Commission shall initiate the process for the cancellation of these Licences since the power plants have ceased to be in operation pursuant to Clause 17 of NERC Application for Licences (Generation, Transmission, System Operations, Distribution & Trading) Regulations, 2010.


III) LICENSEES NOT YET IN OPERATION BUT HAVE SUBSTANTIALLY SATISFIED THEIR MILESTONES

 

Ethiope Energy Ltd.  ix  MBH Power Ltd. (ikeja) 
ii  Supertek Nigeria Ltd. (Abia)  Delta Electric Power Ltd. 
iii  Mabon Energy Ltd.  xi  Wedotebary Nigeria Ltd. 
iv  Bresson A.S. Ltd.  xii  Century Power Generation Ltd. 
v Hudson Power Ltd. xiii Supertek Electric Ltd. (Kogi)
vi Knox J&L Energy Solutions Ltd.    
vii Tower Power Abeokuta Ltd.    
viii

Zuma Energy Nigeria Ltd. (now transferred to Itobe-1 Coal

Power ltd., Itobe-2 Coal Power Ltd., Itobe-3 Coal Power Ltd.,

 & Itobe-4 Coal Power Ltd.

   

 

RESOLUTION OF THE COMMISSION - These Licensees will be required to satisfy their outstanding milestones and commence construction within Twelve (12) months of receiving a written notice from the Commission. Failure to do so will cause the Commission to commence the process for the withdrawal of their Licences pursuant to Clause 18 of NERC Application for Licences (Generation, Transmission, System Operations, Distribution & Trading) Regulations, 2010.


IV) LICENSEES NOT YET IN OPERATION AND HAVE NOT SUBSTANTIALLY SATISFIED THEIR MILESTONES

 

ICS Power Ltd.  iv  Minaj Holdings Ltd. 
ii  Anita Energy Ltd.  Gateway Holdings Ltd. 
iii  Ibafo Power Station Ltd.     

 

RESOLUTION OF THE COMMISSION - The Licensees will be required to, within thirty (30) days of receiving a written notice from the Commission, provide justification why their Licences should not be withdrawn by the Commission pursuant to Clause 18 of NERC Application for Licences (Generation, Transmission, System Operations, Distribution & Trading) Regulations, 2010.


V) LICENSEES NOT IN OPERATION AND ARE NOT SUBMITTING QUARTERLY REPORTS TO THE COMMISSION

Geometric Power Ltd.  Kaduna Power Supply Company Ltd. 
ii  Aba Power Ltd.  xi  MBH Power Ltd. (Off-Grid, Lekki) 
iii  Azura Power WA Ltd.  xii  Enersys Nigeria Ltd. 
iv  Yankari Power Company Ltd.  xiii  Fortune Electric Power Company Ltd. (Cross River) 
v Farm Electric Supply Ltd. xiv  JBS Wind Power Ltd. 
vi  Ikorodu Industrial Power Ltd. (Distribution)  xv  Alausa Power Ltd. 
vii  Westcom Technologies and Energy Services Ltd.  xvi  Chevron Nigeria Ltd. 
viii  Agbara Shoreline Power Company Ltd.  xvii  Ikot Abasi Power Project Ltd. 
ix  Income Electric Ltd.  xviii  Mobil Producing Nigeria Ltd. 
    xix Yellowstone Power Company Ltd.

 

 

RESOLUTION OF THE COMMISSION - The Licensees will be required to, within thirty (30) days of receiving a written notice from the Commission, provide justification why their Licences should not be withdrawn by the Commission pursuant to Clause 18 of NERC Application for Licences (Generation, Transmission, System Operations, Distribution & Trading) Regulations, 2010.

The Commission hereby informs the public as follows:
1. Licensees listed in CATEGORIES II will be notified of the intention of the Commission to commence the process for the CANCELATION of their Licences; and
2. Licensees listed in CATEGORIES IV & V will be notified of the intention of the Commission to commence the process for the WITHDRAWAL of their Licences.
3. The Licensees will be required to make representations to the Commission against the proposed cancellation and withdrawal, and the representations shall be taken into cognizance by the Commission in reaching a final decision on their respective matters.


Signed
THE COMMISSION

 

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