- Post by Admin on sunday, March 05, 2015
The Nigerian Electricity Regulatory Commission (NERC), is set to release a minimum recapitalisation level required to be met by core investors in the power sector. NERC identified capital adequacy as a major issue in the power sector, pointing out that the successor companies of the Power Holding Company of Nigeria (PHCN) were handed over to the core investors without any liability.
As a result, after three years of operating the successor companies, there have been colossal losses, thus necessitating the need to set minimum capital adequacy requirement by the investors. The NERC Vice Chairman, Sanusi Garba, gave the indication at the 14th Power Sector Stakeholders' meeting presided by the Minister of Power, Works and Housing, Babatunde Fashola, at the National Control Centre, Power Line, Oshogbo, Osun State.
The recapitalisation plan comes as the Association of Nigeria Electricity Distributors (ANED), kicked against NERC's plan to escrow revenue accounts of distribution companies (DisCos).