ALERT!!! Nationwide Power Outage Imminent As #TCN Threatens To Disconnect #DISCOs—There might be nationwide power outage of DISCOs refuse to effect payments to the TCN.
The 14-day grace period granted to the 13 defaulting Distribution Companies (DisCos), Generation Companies (GenCos), and the Ajaokuta Steel Corporation to make up their remittance and other deficits with the market operator arm of the Transmission Company of Nigeria (TCN) could result in a widespread outage.
The Nigerian Electricity Market (NEM) operator accused the DisCos of breaking the Conditions of Market Regulations and Market Participation Agreements, which mainly deal with remittances of payment for ancillary electrical services, in an order with the number TCN/ISO/MO/2023/001.
The revenue funds the operations of TCN, NERC and NBET, among others.
According to the TCN, 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 highlighted that it could issue a suspension order to prevent the defaults by the 13 enterprises from participating in the electrical market if they are not corrected after the deadline provided.
In order to turn off the electrical supply from TCN to them, the MO may also issue a disconnection order.
Around 70% of the approximately 12 million registered energy consumers are served by the nine DisCos, while the GenCos account for a major portion of the grid’s power generation, with NDPHC having at least seven operational GenCos.
“The market infractions committed by these MPs are threatening the operations and sustenance of service providers including NERC,” it read.
