Eko Electricity Distribution Company and Afam Power Plc have been fined N66.6m by the Nigerian Electricity Regulatory Commission for their failure to submit their audited financial reports for 2015 and 2014.
National Daily gathered from the regulatory agency that 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.