Nigerian govt cuts off power firms from national grid

The Federal Government has announced the disconnection of some power firms from the national grid.

This is due to their non-adherence to the Electricity Market Rules.

Although it did not name the affected power plants, the government explained that the Nigeria Electricity Supply Industry was governed by rules, which were absolutely necessary for the viability and sustainability of the sector.

These rules, according to the Federal Government, were sacrosanct and must be complied with by all existing or new players in the sector.

Power sector players include the electricity generation, transmission, and distribution companies. For all players to interact effectively and create the requisite harmony for growth, efficiency and profitability of the sector, the rules must be obeyed and upheld, according to the government.

“Some of these rules are domiciled with the Market Operator, but today, adherence to the Market Rule is below expectation,” the Market Operator, an arm of the Federal Government’s Transmission Company of Nigeria, Dr Edmund Eje, said in a statement issued in Abuja.

He added, “NESI market indiscipline is one of the major factors dealing a disastrous blow to the scalability and growth of the market.

“Market Participation Agreement is signed by all participants, but to comply with them is usually an uphill task for many. If the rules of every game are observed, there would be no need for sanctions.

“Currently, the Market Operator – TCN, is embarking on sanctioning erring market participants, having given them notices and time to comply with the market rules. One of the fallouts of the sanctions will be the partial or complete disconnection of defaulters from their point of connection to the grid.”

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