- TCN and DisCos have disagreed over who is responsible for poor services rendered by the NESI.
- TCN had issued a 14-day ultimatum to nine DisCos and three GenCos over their remittances in March.
The Market Operator, a unit in the Transmission Company of Nigeria, TCN and electricity distribution companies, DisCos, have disagreed sharply over who is responsible for poor services rendered by the Nigerian Electricity Supply Industry, NESI.
The MO, a unit in the Transmission Company of Nigeria, TCN, is responsible for issuing invoices and collecting payments for ancillary services provided by TCN, Nigerian Electricity Regulatory Commission, and other government agencies in the sector.
The Market Operator, Engr. Edmund Eje, in a recent statement, blamed the lack of growth in the Nigerian electricity market on the failure of companies to adhere to rules and regulations governing the sector. He explained that the process of imposing sanctions on defaulting firms that disregard rules to promote the market has started. Eje said sanctions could include partial disconnection from the National Grid.
The electricity sector, which the Federal Government partially privatised in November 2013, has failed to deliver the expected improvement, with generation, transmission and distribution averaging just 4,000MW. Eje pointed out that adherence to rules is necessary for the sector’s viability and sustainability. Dr. Eje added: “All participants sign Market Participation Agreement, 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”.
On the other hand, some sources of the distribution companies feel the government remains the biggest challenge in the sector and Government agencies, and parastatals remain the biggest debtors to DisCos. They think the market operators under TCN need to be more sincere with the remittals process, and no significant improvements have been achieved in the transmission segment.
TCN had in March issued a 14-day ultimatum to nine electricity distribution companies, three generation companies and the Ajaokuta Steel Company to remedy their remittances and others with the Market Operator.