The federal government has
ordered the disconnection of three electricity distribution companies from the
national grid over “non-compliance with the conditions of market rules”.
DisCos are allegedly owing the
Transmission Company of Nigeria (TCN) N231 billion energy service debt.
In notices issued by the market
operator, an arm of the TCN, a directive was given for the suspension of – Eko,
Enugu and Ikeja distribution companies for failing to renew their security
cover.
Security cover is a deposit
established to serve as a form of guarantee of payment for all amounts due from
the DisCos to the market operator for energy received.
The DisCos were reportedly given
the room to address the situation but they were said to have refused to respond
within the stipulated time.
“The restriction of Ikeja
Electricity Distribution Company intake from the grid through a Disconnection
Order to the Transmission Service Provider to disconnect some facilities of
Ikeja Electricity Distribution Company until the Event of Default stated in NIISO/2019/003
is remedied,” the notice to Ikeja DisCo read.
The market operator enforcement
panel (MOEP) recommended the suspension of Enugu DisCo having defaulted in
payment and not addressing the issue within the stipulated time.
“That Enugu Electricity
Distribution Company (EEDC) is under suspension through Market Operator issued
Order TCN/ISO/MO/002,” the notice read.
“That Enugu Electricity
Distribution Company (EEDC) has been suspended from the Market Operator
Administered Market due to an EVENT OF DEFAULT that was not remedied. EEDC was
notied of this EVENT OF DEFAULT by a NOTICE OF EVENT OF DEFAULT (NED/2019/002)
dated May 24, 2019.”
A directive was also given for
the suspension of Eko Electricity Distribution Company on similar grounds.
Reacting to the development, Paul
Okeke, EEDC’s deputy managing director, said the company is making necessary
arrangements to procure and deliver security cover to the market operators.
Felix Ofulue, head of corporate
communications of Ikeja DisCo, said the company had sought an extension of time
to fulfil its obligation.
“Notwithstanding the above, Ikeja
Electric assures all its customers and other stakeholders that everything will
be done to ensure that there is no deliberate disruption to services,” Ofulue
said.
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