The Market Operator (MO) which coordinates the Nigerian Electricity Market (NEM), barring last-minute changes, plans to disconnect some Generation Companies (GenCos) and Distribution Companies (DisCos) over failed remittances of bills for ancillary services.
In a statement issued Tuesday, the MO, Engr Edmund Eje, blamed the indiscipline of the operators for the lull in the Nigerian Electricity Supply Industry (NESI).
The MO office which is a section of the Transmission Company of Nigeria (TCN) issued a 14-day warning notice to nine DisCos, two GenCos, Aba Power and Ajaokuta Steel Company (ASC) on March 20th, 2023 for failing to pay bulk power service charges.
Providing an update in the statement on Tuesday, the MO announced plans to commence sanctions, saying: “Currently, the Market Operator – TCN is embarking on sanctioning erring Market Participants, having given them notices and time to comply with the Market Rules. One of the fallouts of the sanctions will be the partial or complete disconnection of defaulters from their point of connection to the grid.”
- 10th NASS: We don’t want bully as speaker — Members-elect
- 29 abducted as kidnappers invade FCT village
Engr Eje noted that if the rules of every game are observed, there would be no need for sanctions. “NESI market indiscipline is one of the major factors dealing a disastrous blow to the scalability and growth of the market. Market Participation Agreement is signed by all participants, but to comply with them is usually an uphill task for many,” he said.
The MO stated that there is an agreed line of actions for defaulters which starts with notifying the defaulters for noncompliance as it did to the 13 GenCos, DisCos and ASC last month. This happens “when a participant violates the Market Rules or fails to pay amounts due to the Market Operator.”
The defaulters are also given a notice of intention to suspend them and thirdly are given opportunity to respond. The MO can suspend them for 30 days by disconnecting them and making other moves to recover outstanding payments.
The defaulter who has cleared its debt can reapply to be reinstated and MO will lift the suspension and reconnect such a DisCo to the national grid.
The defaulters as of March 2023 comprise nine DisCos, Ajaokuta Steel Company (ASC), a special electricity customer; nine DisCos – AEDC, BEDC, EEDC, IBEDC, Ikeja Electric, JEDC, Kaduna Electric, KEDC, PHEDC, APL Electric Company Aba. The GenCos – Niger Delta Power Holding Company (NDPHC) plants and Paras Energy.
The nine DisCos supply electricity to over 70 per cent of the over 12 million registered electricity consumers while the GenCos generate significant power on the grid with NDPHC having at least seven active GenCos.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
