TCN reconnects Kaduna, Kano DisCos to national grid after intervention of power minister

May 01

11:09 2023

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The Transmission Company of Nigeria (TCN) says it will, on Monday, reconnect three electricity distribution companies (DisCos), which were earlier disconnected from the power grid over non-compliance with market rules.

In a statement on Sunday, Edmund Eje, TCN’s market operator (MO), said the reconnection followed the intervention of Abubakar Aliyu, the minister of power, who has considered the collateral consequences on the paying customers.

Consequently, Eje said the suspended market participants will be “reconnected to the national grid at the instance of the minister”.

“The intervention by the honorable minister of power has automatically prolonged the grace period to 60 days from this publication,” he said.

“All market defaulters should comply with the provisions of the market rules with respect to payment of their outstanding invoices, posting of adequate bank guarantees (BG), and forwarding of their active power purchase agreements (PPA) as the case may be, to the market operator/TCN.”

The market operator warned that other defaulters who are yet to be suspended/disconnected should “cure” their defaults within 60 days.

“At the expiration of this grace period, the market operator will resume sanctions in line with the market rules,” Eje said.

“The MO/TCN is hereby urging the erring DisCos to seize this opportunity to fix their defaults as we applaud the intervention of the honorable minister of power.”

About two weeks ago, TCN disconnected the Aba Power Limited from the national grid over an alleged N896 million debt owed as fees to government agencies in the power sector.

Subsequently, Eje said the TCN woul sanction erring electricity companies over breach of market rules.

Last Friday, the market operator said Kano and Kaduna Electricity Distribution Companies, had also been disconnected.

Ndidi Mbah, TCN’s spokesperson, said the DisCos were found to be in non-compliance with the market rules for not having adequate bank guarantee and for “incomplete payments of their market operator’s invoices”.