The Nigerian Electricity Regulatory Commission (NERC) has warned that henceforth, any distribution company (Disco) that rejects electricity from the Transmission Company of Nigeria (TCN) will be sanctioned.
Acting Head of NERC, Dr. Tony Akah, said that henceforth, all Discos and Gencos would be bound by their contractual terms for privatization. He said the regulatory and relevant agencies of government would now hold the operators accountable for contractual obligations under the Transitional Electricity Market (TEM) framework
NERC said yesterday that “where a Disco does not take its allocation for any reason other than System Operator’s (SO) instructions, such Disco shall compensate TCN for attributable loss in revenue. On the other hand, Discos are to be compensated by the TCN for imbalance in revenue resulting from TCN’s inability to deliver allocated energy due to transmission grid constraints.
TCN had in the recent past alleged that some Discos were turning down their electricity load allocations, leading to low supply to consumers.