… “Obtain licenses or face sanctions” – NERC Vice Chairman warns power investors

The Nigerian Electricity Regulatory Commission (NERC) has slapped CCETC Suk Power Company Limited, a Chinese-owned power firm operating in Nigeria, with a hefty penalty for violating Section 62 of the outdated Electric Power Sector Reform Act (EPSRA) 2005.

The revelation emerged during the hearing of the petition filed by CCETC Suk Power Company Limited to NERC for a review of Order No: NERC/REG/CCETCUK/CPCL/APPL/EG/IEDNL/2557/11/OL/456.

The company admitted to violating Section 62 of the repealed EPSRA 2005, by running an electricity generation and distribution company in Nigeria without a license.

“No person except in accordance with a license issued pursuant to this Act shall construct, own or operate an undertaking other than an undertaking specified in subsection 2 of this Section, or in any way engage in the business of electricity generation, excluding captive generation; electricity transmission; system operation; electricity distribution; or trading in electricity.” – Section 62 of the repealed Electric Power Sector Reform Act (EPSRA) 2005. 

CCETC Suk Power Company Limited however pleaded with the Commission to review the fine imposed on the company to enable them to continue operating and servicing its residential and industrial consumers.

Musiliu Oseni, NERC Vice Chairman, who chaired the panel on Wednesday urged power sector investors to obtain all licenses before they begin operations. He warned that failure to do that will attract sanctions.

The Commission VC further in his response to the appeal of the company stated that CCETC Suk Power Company Limited will undergo Environmental Impact Assessment (EIA) and all other relevant regulatory checks to ensure compliance to all NERC rules and regulations.

According to him, the ruling on the petition will be communicated to the Company after review by the Commission in line with extant rules.

Advisors Reports’ findings showed that CCETC Suk Power Company Limited specializes in manufacturing high-end gas power plants.

Our investigation revealed that the company is affiliated with JIANGSU COMMUNICATION CLEAN ENERGY TECHNOLOGY CO. LTD (CCETC), established in May 2017, and has been running a facility at plot Q27, Ogere-Remo Industrial Layout, along Lagos-Ibadan expressway, Ogun State.

CCETC Suk Power Company Limited operated an electricity generation and distribution business in Nigeria without the necessary license.

Further revelations showed that the Chinese company also operates 55MegaWatts CCTEC-Ossiomo Power Plant through a Power Purchase Agreement (PPA) entered with the Edo State Government since 2020, servicing industrial consumers and government buildings and public utilities, such as hospitals, offices, streetlights, the Samuel Ogbemudia Stadium and other such public facilities.