The Federal Government, through the Transmission Company of Nigeria and the Market Operator, has started a huge disconnect of debtor electricity distribution businesses from the national grid. As a result, millions of electricity consumers may be left in the dark in the upcoming weeks.
The development happened after the Market Operator had given some of the Discos notices that they would be disconnected from the grid.
Due to the inability to pay ancillary service payments, The MO, a division of the Transmission Company of Nigeria, had alerted various Discos, including producing businesses, of the planned disconnection.
It has been observed that nationwide energy supplies had deteriorated considerably after MO had made his observation, with several places complaining of either poor or no supply.
In a recent statement, MO’s Executive Director, Eddy Eje, urged disobedient Discos to make the necessary payments. Abubakar Aliyu, the Minister of Power, has already intervened.
The market defaulters were expected to abide by the Market Rules with regard to payment of their outstanding invoices, posting of sufficient bank guarantees, and forwarding of their active Power Purchase Agreements, as applicable, to the MO/TCN, based on the extension of the grace period by 60 days.
APL Electric Company Aba, Ajaokuta Steel, 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, and The Niger Delta Power Holding Company plants are the defaulting Gencos.
Even though Sunday Oduntan, the Association of Nigerian Electricity Distributors’ spokeswoman, declined to comment on the situation, Ibadan Discos’ warning to customers corroborated The PUNCH’s findings.
There will be a widespread disconnect from the national grid, according to a declaration made by Kingsley Achife, managing director/CEO of IBEDC, which The PUNCH was able to get.
He claimed that the decision was made as a result of poor consumer payments.
Customers in the IBEDC franchise areas, particularly those in areas with the highest concentration of defaulters, may experience power interruptions as a result of the action, according to Achife.
The states of Oyo, Ogun, Osun, and Kwara, as well as portions of Niger, Ekiti, and Kogi, will be affected by the widespread disconnection.
Achife, “IBEDC sells and distributes the power produced by the generation companies as part of the electricity value chain’s revenue collection arm. However, due to slow payments and sizable unpaid customer balances, the company is unable to fulfill its financial commitments to the electricity value chain.
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“We kindly request that our valued customers pay their current and past-due bills so that IBEDC can fulfill its commitments to the Market Operator and other parties involved in the energy supply business in order to guarantee a constant and uninterrupted supply of power.
“IBEDC prioritizes offering our esteemed customers dependable and good service, but we also demand prompt payment for the energy used.
“Paying for power is a shared duty that is necessary to maintain the viability of our business.
“We kindly remind our clients that failing to pay current and past-due electricity bills may result in the loss of electricity to connected homes, communities, and companies.
“We urge every customer to pay bills on time to prevent any inconveniences,” Achife