Stakeholders Caution Market Operators, DisCos As TCN’s Mass Disconnection Looms

There are palpable fears that the fragile electricity supply in the country may worsen following threat by the Transmission Company of Nigeria (TCN) to disconnect electricity distribution companies (DisCos) that have failed in complying with payment schedules except they pay up.

The TCN, Market Operator, MO, had earlier issued a 14-business day notice to the DisCos on the 21st of March, 2023 while a suspension order was issued on the 19th of April, 2023 on the issue.

The executive director, Market Operators, Eddy Eje, said that based on the 60 days extension of the grace period, the market defaulters were expected to comply with the provisions of the market rules concerning payment of their outstanding invoices.

The DisCos and generating companies (GenCos) listed among defaulters by the Market Operator, a unit of TCN, included Abuja Electricity Distribution Company, Benin Electricity Distribution Company, Enugu Electricity Distribution Company, Ibadan Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electric, Kano Electricity Distribution Company, Ikeja Electric, Port Harcourt Electricity Distribution Company, APL Electric Company Aba and Ajaokuta Steel Company.

Eje, had earlier warned in a statement that one of the fallouts of the sanctions would be the partial or complete disconnection of defaulters from their point of connection to the grid.

Condemning the action, over 20,000 members of the Aba Landlords Protection and Development Association (ALPDA) threatened to mobilise to the Alaoji power plant in Abia State and occupy it. The landlords vowed to embark on this protest action, if the MO failed to rescind its order which has thrown Abia State into darkness over N896m owed by federal government agencies in the power sector to Aba Power.

Also, convener of PowerUp Nigeria, an advocacy group Adetayo Adegbemle, while speaking with me cautioned Market Operators and Discos, as he sought for proper engagements so that industries and customers don’t suffer the imminent blackout.

Adegbemle said that in the last two weeks the media has been awash with publications from the Transmission Company of Nigeria on the matter of non-compliance with the conditions of market rules and market participation agreements.

“In the publication, the Market Operators listed thirteen (13) Market Participants, including Abuja, Ibadan and Jos Electricity Distribution Companies, Ikeja Electric, Kaduna Electric, and APL Electricity Company Limited. Others are Port Harcourt, Benin, Kano and Enugu Electricity Distribution Companies, Ajaokuta Steel Company Limited, NDPHC and Paras Energy & Natural Resources Dev. Ltd as the defaulters.

He said rules must be followed by market participants but the sector should not be oblivious to the realities on ground.

Although, the MO reconnected at midnight of 1st May 2023, the three Distribution Companies earlier disconnected after the intervention of the Hon. Minister of Power, Engr Aliyu, who has considered the collateral consequences on the paying Disco Customers.

But Eje announced that the intervention by the Minister only prolonged the grace period to 60 days from this publication.

However, the Kano Electricity Distribution Company, KEDCO, said it is making frantic efforts towards ensuring stable power to customers and to avert further inconveniences to them.