Electricity distribution firms (Discos) in the country have issued a notice to declare force majeure following the declaration by the Nigerian Electricity Regulatory Commission (NERC) that eligible customers can purchase power directly from the generating companies, The Punch reports.
Force majeure are unexpected circumstances that can be used as an excuse to prevent a party from doing something written in a contract. The Discos had argued that the directive on eligible customers and the Eligible Customer Regulations had resulted in a change of law, which would prevent them from fulfilling their obligations under the Performance Agreement they signed with the Bureau of Public Enterprises (BPE).
However, the Director-General, BPE, Mr. Alex Okoh, has said that there is no basis for the issuance of the notice by the electricity distribution companies. He stated that pursuant to the Electric Power Sector Reform Act, 2005, it was obvious that the Minister of Power, Works and Housing was empowered to issue the policy directive. He stated that in the same vein, NERC was similarly empowered to issue Eligible Customer Regulations.
Source: Energy Mix Report