Wednesday, June 12, 2024
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HomeHOUSINGExpected Darkness in Nigeria as FG disconnects discos over debts

Expected Darkness in Nigeria as FG disconnects discos over debts

If you’re observant, you’ll notice that electricity supply has degenerated with zero or low supply across the country. There are more complains of light issues in many areas and on social media because the Federal Government via the Transmission Company of Nigeria and the Market Operator have begun a massive disconnection of debtor electricity distribution companies from the national grid.

Millions of people consuming electricity will experience blackouts in the coming weeks as a result of failure to make remittances of ancillary services bills.

The Discos and Gencos listed among defaulters by the Market Operators included; 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- a special electricity customer. The defaulting Gencos are Niger Delta Power Holding Company plants and Paras Energy.

With the 60 days extension of the grace period, the defaulters were expected to comply with the provisions of the Market Rules with respect to payment of their outstanding invoices, posting of adequate bank guarantees, and forwarding of their active Power Purchase Agreements to the MO/TCN.

This comes After the government’s repeated warnings to the DisCos to pay their outstanding debts resulting in the government taking a drastic step to address the situation.

Kingsley Achife, IBEDC Managing Director/CEO, said that the recent decision would result to mass disconnection from the national grid and power outages to customers within the IBEDC franchise areas in Oyo, Ogun, Osun, Kwara, and parts of Niger, Ekiti and Kogi states.

Kingsley states that the company is unable to meet its financial obligations to the electricity value chain due to poor payment and huge outstanding bills by customers and is appealing to 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 as not doing so will lead to disruption of power in homes, communities, and place of businesses.

Eddy Eje, Executive Director, the MO, division of the Transmission Company of Nigeria in a recent statement has advised defaulting Discos to make necessary payments.

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