The Transmission Company of Nigeria (TCN) has stated that it will penalise non-compliant electricity providers who violate market regulations.
In a statement released on Tuesday, TCN’s market operator (MO), Edmund Eje, stated that one of the consequences of the sanction would be the partial or complete disconnection of defaulters from their grid connection point.
According to Eje, market participants in the power industry consist of generation companies (GenCos) and transmission and distribution companies (DisCos).
It is natural, he said, for some of the sanctioned participants to attempt to “politicise the action to score cheap points and stir up unnecessary sentiments.”
However, the TCN market operator advised consumers to be sensitive to the actual issues, which are the survival of the Electricity Supply Industry (NESI) and its efficiency.
“NESI is governed by principles that are essential for the viability and sustainability of the sector. “As such, these rules are sacrosanct and must be adhered to by all existing and new players in the sector,” said Eje.
“In order for all players to interact effectively and create the necessary harmony for growth, efficiency, profitability, and of course, the continued sustenance of the sector, the rules established for governance and regulation of relationships between all in the sector must be adhered to.”
Some of these rules, according to Eje, can be found in the Memorandum of Understanding, and adherence to market rules is below expectations.
According to Eje, in the electricity supply market, lack of discipline was one of the main factors that severely hindered the scalability and growth of the market.
“All participants sign the participation agreement, but many find it difficult to adhere to its terms,” he explained.
“There would be no need for punishment if the rules of each game are followed.”
Eje also stated that when a participant violates market rules, the MO would notify the participant in writing, describing the violation and requesting corrective action be taken within a specified time frame.
“This notice will specify the reasons for the intended suspension, the proposed duration of the suspension, and the conditions for lifting the suspension,” he added.
“If the participant fails to comply with the ‘notice of intent to suspend,’ the market operator may issue a ‘notice of suspension,’ which may last up to 30 business days.
“After the suspension period, the participant may petition for reinstatement by submitting proof of compliance with market rules and any other conditions specified in the ‘notice of suspension’.
“The MO will evaluate the application and decide whether the suspension will be lifted or not.”
The Transmission Company of Nigeria (TCN) severed Aba Power Limited’s connection to the national infrastructure due to an alleged N896 million debt owed as fees to government agencies in the power sector.
Corporate stakeholders have condemned the disconnection of the company.