TCN Initiates Mass Disconnection of Debtor Discos and Gencos from National Grid

 

TNC

The Transmission Company of Nigeria (TCN) and the Market Operator have initiated a massive disconnection of debtor electricity distribution companies (Discos) from the national grid due to outstanding debt. The Market Operator had previously issued disconnection notices to some Discos, including generating companies, over their failure to make remittances of ancillary services bills

The grace period for the market defaulters was extended for 60 days following an intervention by the Minister of Power, Abubakar Aliyu. During this period, they were expected to comply with the Market Rules regarding the payment of outstanding invoices, adequate bank guarantees, and active Power Purchase Agreements. However, some Discos and Gencos failed to comply with the provisions, leading to the current disconnection.

The defaulting Discos listed by the Market Operator include Abuja Electricity Distribution Company, Benin Electricity Distribution Company, Enugu Electricity Distribution Company, Ibadan Electricity Distribution Company, Ikeja Electric, Jos Electricity Distribution Company, Kaduna Electric, Kano Electricity Distribution Company, and Port Harcourt Electricity Distribution Company, as well as APL Electric Company Aba and Ajaokuta Steel Company. The defaulting Gencos are Niger Delta Power Holding Company plants and Paras Energy.

The Managing Director/CEO of the Ibadan Electricity Distribution Company (IBEDC), Kingsley Achife, has already announced a mass disconnection from the national grid due to poor remittances by customers. The disconnection may result in power outages in IBEDC franchise areas, particularly locations with the highest population of defaulters. The areas to be affected by the disconnection are Oyo, Ogun, Osun, Kwara, and parts of Niger, Ekiti, and Kogi states.