A Chinese firm in the Republic of Nigeria has been slapped with a hefty fine by the Nigerian Electricity Regulatory Commission (NERC) for operating an electricity generation and distribution company without obtaining a licence.

The firm violated section 62 of the outdated Electric Power Sector Reform Act (EPSRA) 2005, advisorsreports said in a report sighted by this portal.

The report, however, did not provide details of the fine the Chinese firm is expected to pay.

According to section 62 of the repealed Electric Power Sector Reform Act (EPSRA) 2005, “No person except in accordance with a license issued pursuant to this Act shall construct, own or operate an undertaking other than an undertaking specified in subsection 2 of this Section, or in any way engage in the business of electricity generation, excluding captive generation; electricity transmission; system operation; electricity distribution; or trading in electricity.’’

The Chinese firm, CCETC Suk Power Company Limited, has admitted to operating an electricity generation and distribution company without the appropriate licence.

The company had filed a petition to NERC to review an Order to it.

However, during the hearing of the petition, it was uncovered that the company was operating without a licence.

The company pleaded with the Commission to review the fine imposed on it to enable it to continue servicing its residential and industrial consumers.

Musiliu Oseni , NERC Vice Chairman, who chaired the panel urged power sector investors to obtain licenses before they begin operations.

He warned that failure to do so will attract hefty sacntions.