In a significant move, the Nigerian Electricity Regulatory Commission (NERC) has removed all directors of Kaduna Electricity Distribution Plc (KAEDC) due to its failure to settle debts owed to the Nigerian Bulk Electricity Trading Plc (NBET). The decision, effective from January 1, was announced in a document signed by NERC Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni.
The commission outlined that KAEDC consistently fell short of meeting its market obligations, violating the electricity act and the terms of its distribution license. Despite ample opportunities, the management, board, and shareholders failed to address the utility’s performance issues, leading to the dissolution of the board.
Trending: Federal Government Plans to Sell Kaduna Electric Amidst N110 Billion Debt Crisis
Dr Umar Abubakar Hashidu has been appointed as the administrator of KAEDC, responsible for managing day-to-day affairs until the completion of the sale to a new core investor. The commission emphasized the appointment of a team of special directors for governance purposes.
Highlighting KAEDC’s financial predicament, the commission revealed the utility’s inability to comply with basic market requirements, leading to a debt of over NGN 110 billion. The failure to provide justifiable cause and bank guarantees further accelerated the regulatory intervention.
The commission stated its commitment to administering the sale of the undertaking based on the highest and best price, in accordance with the Electricity Act.
Source: Premium Times.
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