Darkness Looms as FG Moves to Disconnect Ikeja Electric, Abuja Disco, and 11 Other Defaulters

Darkness Looms as FG Moves to Disconnect Ikeja Electric, Abuja Disco, and 11 Other Defaulters

  • The Federal Government, via the Transmission Company of Nigeria, has issued a 14-day notice to 13 electricity firms and the Ajaokuta Steel Company
  • The notice borders on defaults on remittances to the Market Operator of TCN
  • The order stated that the defaulting companies risk disconnection from the national grid unless they remedy their breaches

There is a looming widespread outage over a 14-day grace period given to 13 defaulting electricity distribution and generating companies and the Ajaokuta Steel Company over unremitted funds and other deficits with the Transmission Company of Nigeria (TCN).

TCN had, via its subsidiary, the Nigerian Electricity Market Operator, accused the companies of non-compliance with the Conditions of Market Rules and Market Participation Agreements, which border primarily on payment remittances for ancillary electricity services.

TCN, GenCos, DisCos
An employee walks past electricity pylons carrying high-voltage cables. Credit: Bloomberg / Contributor
Source: Getty Images

The list of the defaulting companies

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Daily Trust reports that the funds service the operations of TCN, Nigerian Electricity Regulatory Commission (NERC), and Nigerian Bulk Electricity Trading (NBET) Plc, among others.

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The defaulters comprise nine distribution companies, three generating firms, and Ajaokuta Steel Company, the only special electricity end-user and customer.

The affected distribution companies include Abuja DisCo, Benin Disco, Enugu DisCo, Ibadan DisCo, Ikeja Electric, Jos DisCo, Kaduna Electric, Kano Disco, and Port Harcourt DisCo.

The generating companies include APL Electric Company, Aba, Niger Delta Power Holding Company plants, and Para Energy.

According to Edmund Eje, the administrator stated that the market operator gave a grace of 14 working days for the defaulting companies to remedy their breaches or be sanctioned.

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Defaulting companies risk disconnection from the national grid

The TCN grid administrator department noted that if, after the timeframe, the companies do not remedy their defaults, it could issue a suspension order or disconnect them from participating in the electricity market.

TCN noted it could also issue a disconnection order to remove them from the national grid.

The affected DisCos provide over 70% of the 12 million registered electricity consumers. The GenCos generate significant electricity on the grid, with NDPHC having about seven active DisCos on the national grid.

The order said:

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

Sanwo-Olu unveils Lagos Electricity Market to generate 1GW solar-powered energy, names new firm

Legit.ng reported that the Lagos State Governor, Babajide Sanwo-Olu, has announced plans for the state to generate its electricity in line with the recently signed bills granting states autonomy in critical areas like electricity, railway, and judiciary.

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Sanwo-Olu stated that the new bills empower states like Lagos to take charge of their growth in the electricity sector.

On Tuesday, March 21, 2023, he said that Bill No 33 was a historic move, granting Lagos and other states the authority to regulate electricity generation, transmission, and distribution.

Source: Legit.ng

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