Electricity operators to submit outstanding audited accounts in February

Operators in Nigeria’s electricity distribution and generation companies have been directed to submit their outstanding audited financial accounts by the end of the month.

This was contained in the communiqué released at the recently concluded 11th monthly meeting of the Honourable Minister of Power, Works and Housing with operators of the Power Sector, held on Monday, January 9 2017 at Ikeja West Transmission Station, Lagos State.

Operators in the power sector especially distribution companies consistently flout a regulation by the Nigerian Electricity Regulatory Commission that they should submit their audited accounts yearly.

Babatunde Fashola, minister of Power, Works, and Housing in November, accused the 11 electricity distribution companies of impeding smooth regulation by NERC due to refusal to comply with terms included in the 2013 privatisation exercise.

Fashola said that in the past three years, the Discos have refused to submit their audited financial reports to NERC and when the commission wanted to activate their contractual obligations as contained in the Transitional Electricity Market (TEM), they will drag the commission to court and frustrate efforts.

NERC imposed a fine of N37million on Port Harcourt Disco in October last year, over its failure to submit audited financial report since 2013 when the new management took over the operations of the company.

In December, the commission slapped a fine of N66.6m on Afam Power and Eko Electricity Distribution Company (EKEDC) for not submitting two years audited reports.

The Transmission Company of Nigeria (TCN) also felt the wrath of the regulator because in the same month of December, paid N47.6m for the office.

These were insistences where the sector watchdog has marched threats with requisite sanction over an issue that compliance has been two few and far between.

Unlike other corporate organisations required to file financial statements at the end of a financial year, Nigeria’s electricity distribution companies circumvent this rule or file their accounts very late limiting corporate governance in the sector.

Companies quoted on the Nigerian Stock Exchange (NSE) have 19 working days after 12-month fiscal year to submit their audited report and accounts to the regulators and the investing public.

ISAAC ANYAOGU