Key highlights:
- Reconnection came after the intervention of the Minister of Power.
- Intervention by the Minister has automatically prolonged the grace period to 60 days from this publication.
- Disconnections and sanctions will resume after 60 days for defaulting DisCos.
The Transmission Company of Nigeria announced it will reconnect Kano DisCo, Kaduna Electric and APLE Electric to the power grid from today, 1st of May 2023.
TCN said the 3 companies were disconnected from the grid as a result of noncompliance with Market rules.
This was disclosed on Sunday night by Mr Edmund Eje, Market Operator, TCN after customers in the Distribution areas were in total darkness for days.
Ministerial Intervention
TCN said the plan to reconnect came after the intervention of the Minister of Power, Engr Aliyu, they said:
- ” He(Minister) has considered the collateral consequences on the paying Disco customers”
- “These suspended and disconnect defaulting Market participants will be reconnected to the National Grid at the instance of the Minister of Power
- ” The Intervention by the Minister has automatically prolonged the grace period to 60 days from this publication.”
Defaulters
The TCN added that all Market Defaulters should comply with the provisions of the Market Rules concerning payment of their outstanding invoices, posting of Bank Guarantees and forwarding of the active Power Purchase Agreements (PPA) as the case may be to the Market Operator/TCN, they added:
- “It should be noted that other defaulters who are yet to be suspended should cure their defaults this sixty days, at the expiration of this grace period, the Market Operator will resume sanctions in line with the Market Rules.”
TCN urged the erring Discos to use the opportunity to fix their defaults and applauded the intervention of the Minster of Power.
Backstory
Nairametrics reported that TCN initially disconnected the Kano and Kaduna Discos because both DisCos were equally found to be in non-compliance with the Market Rules for not having adequate Bank Guarantees and for incomplete payments of their Market Operator’s invoices for the timeline from January 2020 to February 2023.
- “Both companies were sent a request for their bank Guarantees in line with the Market Rules, on the 16th of February 2022 and their failure to provide the required Bank Guarantees,
- ” Consequently, a Notice of Event of Default was issued on the 2nd of March, 2022, for incomplete payment of invoices
- ” A 14 business day notice was issued on the 221st of March, 2023, in three national newspapers ( Daily Trust, Guardian and Thisday) as required by Market Rules
- ” The Disconnection Order was then carried out on the 26th of April, 2023 in line with the Market Rules.”
