Millions of electricity customers may be cut off from the national grid in the coming weeks as the Federal Government, through the Transmission Company of Nigeria and the Market Operator, begins a massive disconnection of debtor electricity distribution companies from the national grid.
According to PUNCH, the development occurred after the Market Operator served notices of grid disconnection on some of the Discos.
READ ALSO: KAEDCO restores electricity to Kebbi
The MO, a division of the Transmission Company of Nigeria had informed some Discos, including generating companies of the disconnection plan, due to failure to make remittances of ancillary services bills.
Since MO’s observation, The PUNCH has observed that electricity supply has deteriorated further across the country, with many areas reporting low or no supply.
In a recent statement, MO’s Executive Director, Eddy Eje, advised erring Discos to make the necessary payments. This was in response to an intervention by Power Minister Abubakar Aliyu.
Based on the 60-day extension of the grace period, market defaulters were expected to comply with the Market Rules in terms of paying their outstanding invoices, posting adequate bank guarantees, and forwarding their active Power Purchase Agreements to the MO/TCN.
According to the findings of The PUNCH, the following Discos and Gencos were listed as defaulters by the Market Operators: 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 Niger Delta Power Holding Company plants and Paras Energy are the defaulting Gencos.
Although the spokesperson for the Association of Nigerian Electricity Distributors, Sunday Oduntan, declined to comment on the development, an Ibadan Discos notice sent to customers confirmed The PUNCH’s findings.
In a statement obtained by The PUNCH, IBEDC Managing Director/CEO Kingsley Achife stated that there would be a mass disconnect from the national grid.
Customers’ poor remittances, he claims, prompted the decision.
According to Achife, the action may cause power outages for customers in IBEDC franchise areas, particularly in areas with the highest population of defaulters.
The PUNCH has learned that the mass disconnection will affect Oyo, Ogun, Osun, Kwara, and parts of Niger, Ekiti, and Kogi states.
Achife, “As a revenue collection arm of the electricity value chain, IBEDC sells and distributes electricity generated by the generation companies. However, the company is unable to meet its financial obligations to the electricity value chain due to poor payment and huge outstanding bills by customers.
“We appeal to our esteemed customers to pay their current and outstanding bills to enable IBEDC to meet its obligations to the Market Operator and other parties in the electricity supply industry to ensure continuous and uninterrupted power supply.
“IBEDC prioritizes the provision of reliable and excellent service to our esteemed customers but requires timely payment for the energy consumed.
“Payment for electricity is essential to ensure the sustainability of our operations, and it is a responsibility that we all share.
“We urge our customers to note that failure to pay current and outstanding electricity bills may result in disruption of power to homes, communities, and businesses connected to our network.
“We encourage all customers to pay their bills promptly to avoid any inconvenience,” Achife added.
