Fakoyejo OlalekanSome electricity distribution companies (Discos) will be reconnected to the national grid on Monday, the market operator (MO) of the Transmission Company of Nigeria (TCN), Edmund Eje, has revealed.
Edmund said the reconnection was due to the extension of the grace period to 60 days following the intervention of the Minister of Power, Abubakar Aliyu. The grace period started in the last week of April.
Join our WhatsApp ChannelPrime Business Africa previously reported that TCN disconnected Aba Power, a Disco in Abia State, from the grid. The power sector regulator went ahead to disconnect Discos in Kano and Kaduna States as well.
TCN said its action against the Discos and the generating companies (Gencos) was due to their failure to comply with the market rules which they signed.
The Discos and Gencos were accused of not meeting their invoices, hence, the clampdown against them, “Participation agreement is signed by all participants, but to comply with them is usually an uphill task for many,” Edmund had stated five days ago, adding, “If the rules of every game are observed, there would be no need for sanction.”
However, according to reports on Monday, TCN has extended the grace period to enable the companies to meet their financial obligations to the regulator.
Edmund said: “The intervention by the honorable minister of power has automatically prolonged the grace period to 60 days from this publication.”
The market operator further stated: “All market defaulters should comply with the provisions of the market rules with respect to payment of their outstanding invoices, posting of adequate bank guarantees (BG), and forwarding of their active power purchase agreements (PPA) as the case may be, to the market operator/TCN.”
In addition, he said: “At the expiration of this grace period, the market operator will resume sanctions in line with the market rules,” adding, “The MO/TCN is hereby urging the erring DisCos to seize this opportunity to fix their defaults as we applaud the intervention of the honorable minister of power.”
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