The Market Operator (MO) of Transmission Company of Nigeria ( TCN), has announced a 60-day of grace for all defaulting distribution companies (discos) to fix their defaults or face sanctions in accordance to the market rules.
According to the company, within the 60 days granted, affected discos are expected to pay their outstanding invoices, post adequate Bank Guarantees (BG), and forward their active Power Purchase Agreements (PPA) as the case may be, to the Market Operator/TCN.
“It should be noted that other defaulters who are yet to be suspended/disconnected should cure their defaults within this sixty (60) days,” the MO of TCN, Edmund Eje insisted in a statement issued by the company.
“At the expiration of this grace period, the Market Operator will resume sanctions in line with the Market Rules.”
Eje, also disclosed plans to reconnect Discos that were earlier disconnected from the electricity power grid as a result of non compliance with the market rules.
The market operator had suspended APLE Electric Limited, Kano and Kaduna electricity distribution companies for breach of the market rules, which governs the Nigerian Electricity Supply Industry.
It noted that the KADUNA and KANO Electricity Distribution Companies were found to be in non-compliance with the market rules for not having adequate Bank Guarantees and for incomplete payments of their Market Operator’s invoices for the time-line January 2020 to February 2023.
Similarly, the APL Electric Limited was found to be in non-compliance with the market rules for not having adequate Bank Guaranty and for incomplete payments of APLE’s Market Operator’s invoices for September 2022 to February 2023.
“These suspended & disconnected defaulting market participants will be reconnected to the National Grid at the instance of the Minister of Power.
“This is coming at the intervention of the Minister of Power, Engr Aliyu, who has considered the collateral consequences on the paying Disco Customers.
“The intervention by the Minister has automatically prolonged the grace period to 60 days from this publication, ” he said.
