The FG is planning to disconnect Discos and Gencos over millions of naira in debt. Millions of electricity consumers could be plunged into darkness and heat in the coming weeks as the federal government, through the Transmission Company of Nigeria and the Market Operator (MO) has begun a large-scale disconnection of electricity distribution companies from the national grid over debt.
The MO, a division of the Nigerian Transmission Company, has notified several Discos of its plans. The notification also includes the power generation company, Genos. They plan to disconnect them after failing to make remittances of ancillary services bills.
Findings revealed that the 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.
According to the source, since MO served erring parties, power supplies have continued to decline nationwide, with many areas complaining of either low or no supply.
Based on the 60 days extension of the grace period, 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.
Following the intervention of Minister of Power, Abubakar Aliyu, the MO Executive Director, Eddy Eje advised debtors in a recent statement to make all necessary payments.
cc: Punch Ng
