Federal government disconnects discos from national grid over unpaid debt

Federal government disconnects discos from national grid over debt

The Federal Government of Nigeria, through the Transmission Company of Nigeria and the Market Operator, has begun a disconnection exercise against debtor electricity distribution companies that may leave millions of electricity consumers in darkness in the coming weeks.

The Market Operator had served some Discos with notices of disconnection from the grid due to their failure to remit ancillary services bills.

The disconnection exercise is a result of the defaulting distribution and generating companies’ failure to comply with the provisions of the Market Rules with respect to payment of outstanding invoices, posting of adequate bank guarantees, and forwarding of their active Power Purchase Agreements.

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The affected Discos and Gencos include 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, APL Electric Company Aba, Ajaokuta Steel Company, and the defaulting Gencos are Niger Delta Power Holding Company plants and Paras Energy.

The Executive Director of the Market Operator, Eddy Eje, advised the defaulting Discos to make necessary payments. However, the areas to be affected by the mass disconnection exercise are Oyo, Ogun, Osun, Kwara, and parts of Niger, Ekiti, and Kogi states.

The Ibadan Electricity Distribution Company has sent notices to customers of the planned mass disconnection exercise due to poor remittances by customers. According to the IBEDC Managing Director/CEO, Kingsley Achife, the company is unable to meet its financial obligations to the electricity value chain due to poor payment and huge outstanding bills by customers.

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