The Bureau of Public Enterprises (BPE) has written to the Nigerian Electricity Regulatory Commission (NERC) seeking 14 days for it to resolve issues around the repayment of the CBN loan which Ibadan DisCo gave to its core investors.
In a letter written on June 20, 2018 referenced BPE/LSCS/NERC/2018/26, BPE sought amicable resolution of the issue, appealing that NERC cancels the Order suspending Ibadan Electricity Distribution Company (IBEDC) last week.
The Bureau said the suspension and revocation of the DisCo’s licence may affect certain provisions in the performance agreement which would have higher implications on the federal government.
In the letter, “Re: Order No: NERC/181/2018: In the Matter of an Application of the Enforcement Regulation for the Nigerian Electricity Supply Industry Pursuant to the Electric Power Sector Reform Act”, signed by Director General of BPE, Alex Okoh and sighted by Daily Trust, the Bureau said NERC did its job but raised some salient issues.
It said the effects on the federal government is because BPE holds 40 per cent of the DisCo’s share for government and due to the pacts entered into between BPE, Ministry of Finance (MOFI), Integrated Energy Distribution and Marketing Limited (IEDML), the core investor in IBEDC.
“We wish to bring to the notice of the Commission that the BPE had on behalf of the FGN entered into certain covenants with the investors; and as such, the threatened cancellation or sudden revocation of the distribution license might trigger off certain provisions in the performance agreement which will be of grave consequences to the FGN.
“We request that the Commission gives the Bureau two weeks to resolve the matter amicably. Accordingly, we urge the Chairman to reconsider the Commission’s order as to accommodate the Bureau’s concerns,” Okoh said in the letter.