Electricity DISCOs Declare Force Majeure over Tariffs, Insurgency

Nigeria’s Bureau of Public Enterprises (BPE) has said that some electricity distribution companies (DISCOs) in the country have declared force majeure over tariffs and insecurity.

The Head of Public Communications at the privatisation agency, Mr. Alex Okoh said; “There are two notices of declarations of force majeure; namely political force majeure by some DISCOs occasioned by change in tariff. This political force majeure was reported to the NCP meeting held on Thursday, April 16, 2015″.

“The NCP deliberated on the matter and set up a committee chaired by the Minister of Power to engage the DISCOs and resolve the matter. Membership of the committee comprised representatives of the Ministry of Power, NERC and the BPE”.

Mr. OKoh also noted, “The second notice of declaration of force majeure is that of Yola Electricity Distribution Company. YEDC had on six occasions (November 10, 2013, August 27, 2014, October 15, 2014, April 9, 2015, April 30, 2015 and May 13, 2015) given notice of force majeure”.

According to Mr. Okoh, the committee held meetings and appointed a consultant – Messrs SEWA West Africa Limited – that toured the areas of operations of the DISCO and submitted a report to the committee on its findings. The report of SEWA was reviewed by the committee and recommendations were made to the Vice-President for subsequent approval of the President.