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Outage looms as TCN may disconnect 13 defaulting DisCos, GenCos

There may be a widespread outage at the expiration of a 14-day grace given to the 13 defaulting Distribution Companies (DisCos), Generation Companies (GenCos) and…

There may be a widespread outage at the expiration of a 14-day grace given to the 13 defaulting Distribution Companies (DisCos), Generation Companies (GenCos) and the Ajaokuta Steel Company to balance up their remittances and other deficits with the market operator arm of the Transmission Company of Nigeria (TCN).

In an order No:TCN/ISO/MO/2023/001, the Nigerian Electricity Market (NEM) operator accused the DisCos of non-compliance with the Conditions of Market Rules and Market Participation Agreements which mostly border on remittances of payment for ancillary electricity services.

The revenue funds the operations of TCN, NERC and NBET, among others.

The defaulting Market Participants (MPs) comprise nine DisCos, three GenCos and Ajaokuta Steel Company, a special electricity end-user/customer.

The DisCos are Abuja DisCo, Benin DisCo, Enugu DisCo, Ibadan DisCo, Ikeja Electric, Jos DisCo, Kaduna Electric, Kano DisCo and Port Harcourt DisCo.

The GenCos are APL Electric Company Aba, Niger Delta Power Holding Company (NDPHC) plants, and Paras Energy.    

In the published order, dated March 20, 2023, and signed by the Market Operator, Engr. (Dr.) Edmund Eje, the administrator said: “In line with the provisions of the Market Rule, the MO gives a grace of 14 working days within which all MPs must fully remedy their breaches or face full market sanction.”

The TCN grid administration department noted that if after the timeline given the defaults by the 13 companies are not remedied, it could issue a suspension order to cut off the defaulters from participating in the electricity market.

The MO can also issue a disconnection order to cut off the power supply from TCN to them.

The nine DisCos supply 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.  

Highlighting the fault, MO said: “The market infractions committed by these MPs are threatening the operations and sustenance of service providers including NERC.”

 

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