FG disconnects discos from the national grid, due to debt

The Federal Government, through the Transmission Company of Nigeria and the Market Operator, has started a massive disconnect of debtor electricity distribution companies from the national grid. As a result, millions of electricity consumers may be left in the dark in the upcoming weeks.

The change occurred after the Market Operator served notices of grid disconnections to some of the Discos.

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Due to failure to pay ancillary service bills, The MO, a division of the Transmission Company of Nigeria, had informed some Discos, including generating companies, of the planned disconnection.

The PUNCH observed that nationwide electricity supply had deteriorated further since MO had made his observation, with many areas complaining of either low or no supply.

In a recent statement, MO’s Executive Director, Eddy Eje, urged disobedient Discos to make the necessary payments. Abubakar Aliyu, the Minister of Power, had previously intervened.

The market defaulters were expected to abide by the Market Rules with regard to payment of their outstanding invoices, posting of sufficient bank guarantees, and forwarding of their active Power Purchase Agreements, as applicable, to the MO/TCN, based on the extension of the grace period by 60 days.

APL Electric Company Aba, Ajaokuta Steel, Abuja Electricity Distribution Company, Benin Electricity Distribution Company, Enugu Electricity Distribution Company, Ibadan Electricity Distribution Company, Ikeja Electric, Jos Electricity Distribution Company, Kaduna Electric, Kano Electricity Distribution Company, Port Harcourt Electricity Distribution Company, and Niger Delta Power Holding Company plants and Paras Energy are the defaulting Gencos.

Even though Sunday Oduntan, the Association of Nigerian Electricity Distributors’ spokesperson, declined to comment on the situation, Ibadan Discos’ notice to customers corroborated The PUNCH’s findings.

There would be a widespread disconnect from the national grid, according to a statement made by Kingsley Achife, managing director and CEO of IBEDC.

He claimed that the decision was made as a result of poor customer payments.

Customers in the IBEDC franchise areas, particularly those in areas with the highest population of defaulters, may experience power outages as a result of the action, according to Achife.

The PUNCH has learned that the states of Oyo, Ogun, Osun, Kwara, as well as portions of Niger, Ekiti, and Kogi, will be affected by the widespread disconnection.

Achife, “IBEDC sells and distributes the electricity produced by the generation companies as part of the electricity value chain’s revenue collection arm. However, due to slow payments and sizable unpaid customer balances, the company is unable to fulfil its financial commitments to the electricity value chain.

“We kindly request that our valued customers pay their current and past-due bills so that IBEDC can fulfil its commitments to the Market Operator and other parties involved in the electricity supply industry in order to guarantee a constant and uninterrupted supply of power.

“IBEDC prioritises offering our esteemed customers dependable and excellent service, but we also demand prompt payment for the energy used.

“Paying for electricity is a shared responsibility that is necessary to maintain the viability of our operations.

“We kindly remind our customers that failure to pay current and past-due electricity bills may result in the loss of electricity to connected homes, communities, and businesses.

We advise all of our clients to pay their bills on time to avoid any inconveniences, Achife continued.