Alteration of EPSRA may lead to $5bn compensation – Discos

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The 11 electricity distribution companies in Nigeria have said that the proposed amendment to the country’s Electric Power Sector Reform Act 2005 by the House of Representatives through a bill to criminalise estimated billing will conflict with certain existing agreements in the industry and thus lead to payment of compensations worth $5 billion to operators in the sector.

Speaking through their association – the Association of Nigerian Electricity Distributors (ANED), the Discos said such industry agreements that could be affected by the bill proposed by the House Majority Leader, Hon. Femi Gbajabiamila (APC Lagos) were the Share Sale Agreement (SSA) and Performance Agreement they signed with the government.

According to them, the potential changes in the EPSRA which the amendment sought, would specifically mean that the federal government compensates them for losses that were likely to come from its implementation.

Source: THISDAY


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