TCN threatens to sanction Ikeja Electric, Ibadan electric, others over non remittance


By Bayonle Adegbola

The Transmission Company of Nigeria (TCN) has issued a 14-day ultimatum to Ikeja, Abuja, seven other electricity distribution companies (DisCos), APL Electric Company Aba, Niger Delta Power Holding Company (NDPHC) plants, and Paras Energy and the Ajaokuta Steel Company to balance up their remittances and other deficits to the Market Operator.

This was said by Engr. Dr. Eddy Eje,The Executive Director, Market Operator (Independent System Operator) made this known in an order No:TCN/ISO/MO/2023/001, signed and addressed to the defaulting Market Participants(MPs) for their non-compliance with the Conditions of Market Rules and Market Participation Agreements.

It was confirmed that Market Operator is a subsidy of the TCN responsible for the processing of monthly settlement, including energy bought and sold between Discos, Gencos and IPPs, Transmission Usage charges, and other services.

And it was checked further that the other defaulting MPs are DisCos and Benin DisCo, Enugu DisCo, Ibadan DisCo, Jos DisCo, Kaduna Electric, Kano DisCo and Port Harcourt DisCo.

Ajaokuta Steel Company, is indebted to the market, as a special electricity end-user/customer.

According to Engr Eje, the order was in line with the provisions of the Market Rule, adding that the Market Operator had given a grace of 14 working days within which all MPs must fully settle their dues or face full market sanction.

He further noted that if after the timeline given and the defaults by the 13 companies are not remedied or settled, the Market Operator could issue a suspension order to cut off the defaulters from participating in the electricity market.

The ED also mentioned that the Market Operator will — after the expiration of the ultimatum — also issue a disconnection order to cut off the power supply from TCN to the MPs.

Engr. Eje also said, “The defaulting Market Participants (MPs) were formally notified of the default of their MPA and the Market Rules (MR) and also citing sections: 17.1.d and 45.3–7, dealing with remedial actions and sanctions.

“The MPs may want to note that if an Event of Default is not remedied within the time specified in the Default Notice or within such longer period as may be agreed by the Market Operator, the Market Operator may issue the transmitters and distributors to whose systems the Participant is connected, a notice indicating its intention to issue.

“A suspension order to the participant, suspending or restricting all or any of the Participant’s rights for their participation in the Market Operator Administered Market; and a disconnection order to TSP or any other Transmitter, or distributor to whose transmission system or distribution system the participant is connected, directing the disconnection of the relevant facilities or equipment of the suspended participant,” the Market Operator ED noted.

The ED ISO however emphasised that the Market infractions  by these MPs is threatening the operations and strength of all the Service Providers in the Nigerian Electricity Market, including the Regulator.

Dr. Eje then warned that in line with the provisions of the Market Regulators, the Market Operator hereby gives a graceful timeline of 14 working days from the date of this publication, within which all MPs must fully remedy their MPA/MR breach with respect to clause 3.3.(iii) of the MPA or face full Market Sanction in line with the MR.

He made emphasis that Market Operator is really committed to NEM stability and sustenance, the failure of the service providers will precipitate to market failure, warning all MPs to be guided by the market ruling documents and agreements they have committed to. Saying if they don’t want the sanction, then they should pay their dues.