TCN Threatens Defaulting Discos, Gencos After Aba Power Clampdown

The Transmission Company of Nigeria (TCN) has threatened to fine electricity Generation Companies (GenCos), and the transmission and Distribution Companies (DisCos) for non-compliance with the market rules.

TCN said it will partially or completely disconnect firms that contravene the market rules from their point of connection to the grid, a statement released by the TCN’s market operator (MO), Edmund Eje, reads. 

He said sanctions will be taken against defaulters even though the firms will politicise the action to score cheap points and whip up unnecessary sentiments. 

Eje’s statements followed criticism from the Managing Director of Aba Power, Patrick Umeh, who said TCN has been unfair for disconnecting the firm from the national grid.

In a statement addressing the firms in the power sector, TCN said the real issues, which are the efficiency and survival of the Electricity Supply Industry (NESI), should be the priority of consumers. 

“NESI is governed by rules which are absolutely necessary for the viability and sustainability of the sector. As such these rules are sacrosanct and must be complied with by all existing or new players in the sector,” Eje said, adding, “For all the players to interact effectively and create the requisite harmony for growth, efficiency, profitability and of course, continued sustenance of the sector; the rules set for governance and regulation of relationships between all in the sector must be obeyed and upheld.” 

Eje said the scalability and growth of the market are hindered by indiscipline among the companies, as they find it difficult to comply with the participation agreement they signed. 

According to him, companies in the power sector won’t be sanctioned if they observe the rules, “Participation agreement is signed by all participants, but to comply with them is usually an uphill task for many,” he stated, adding, “If the rules of every game are observed, there would be no need for sanction.” 

Eje revealed that notification is sent to a company that violates the market rules, urging them to take corrective action within a timeframe, but if the firm doesn’t comply with directives, a notice of suspension which may last for 30 days will be sent to the company. 

“This notice will specify the reasons for the intended suspension, the proposed duration of the suspension, and the conditions for lifting the suspension.” Eje said. 

He explained that: ”If the participant still fails to comply with the ‘notice of intention to suspend’, the market operator may issue a ‘notice of suspension’, which may last for 30 business days. 

“After the suspension period, the participant may apply for reinstatement by providing evidence of compliance with the market rules and any other conditions specified in the ‘notice of suspension’. 

“The MO will review the application and make a determination on whether to lift the suspension or not.”