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BEDC has sued NERC and ADL over operation license
- NERC plans to grant an IEDN operation license to ADL
- BEDC asks the FHC to issue a restraining order on NERC
Benin Electricity Distribution Company (BEDC) has sued the Nigerian Electricity Regulatory Commission (NERC) to court over the latter’s plans to issue an Independent Electricity Distribution Network (IEDN) license to Asaba Distribution Limited (ADL). The BEDC filed a suit at the Federal High Court, Abuja with Suit No. FHC/ABJ/CS/36/2021 asking the Court to issue an order, restraining NERC from issuing an IEDN license to ADL.
In response, the Commission has postponed indefinitely a Hearing scheduled to hold today, the 19th of January 2021. The Hearing was in response to a petition filed at the Commission by BEDC challenging the licensure. In a tweet shared on the Commission’s Twitter page, the Commission says the reason for the postponement is to allow the Commission to adequately prepare to defend the suit filed at the Federal High Court by BEDC.
The Commission’s plans to issue an IEDN license to new investors within the franchise area of an existing DisCo raises questions as to the validity and sanctity of the privatisation process which was completed in 2013.