FG disconnects discos from national grid over debt

The Transmission Company of Nigeria and the Market Operator have begun a massive disconnection of debtor electricity distribution companies from the national grid over debt. 


This came after notices of disconnection from the grid served on some of the Discos by the Market Operator. Punch reported that the MO, a division of the Transmission Company of Nigeria had informed some Discos, including generating companies of the disconnection plan, due to failure to make remittances of ancillary services bills.


After a 60 days extension of the grace period following an intervention by the Minister of Power, Abubakar Aliyu, the market defaulters were expected to comply with the provisions of the Market Rules with respect to payment of their outstanding invoices, posting of adequate bank guarantees, and forwarding of their active Power Purchase Agreements as the case may be, to the MO/TCN.


Discos and Gencos listed among defaulters by the Market Operators included; 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, Port Harcourt Electricity Distribution Company, APL Electric Company Aba, Ajaokuta Steel Company- a special electricity customer. The defaulting Gencos are Niger Delta Power Holding Company plants and Paras Energy.


Following the development, IBEDC Managing Director/CEO, Kingsley Achife has already announced that there would be a mass disconnection from the national grid following poor remittances by customers. The action may result in power outages to customers within the IBEDC franchise areas, especially locations with the highest population of defaulters.


Areas to be affected by the mass disconnection are Oyo, Ogun, Osun, Kwara, and parts of Niger, Ekiti and Kogi states.

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