Blackout looms as Nigerian govt disconnects power companies from grid

Some locations across the country might experience power outage after the Federal Government announced the disconnection of some power companies from the national grid.

The Market Operator, an arm of the Federal Government’s Transmission Company of Nigeria, Dr Edmund Eje, made this disclosure in a statement issued in Abuja, on Tuesday.

According to Eje, these power companies have repeatedly refused to adhere to the Electricity Market Rules.

The government explained that the Nigerian electricity supply industry was governed by laws, which were critically required for the viability and sustainability of the sector, but it avoided naming the affected power facilities.

The Federal Government claimed that these regulations were inviolate and that any new or existing actors in the industry had to abide by them.

According to the government, the rules must be followed and upheld in order for all participants to properly interact and establish the harmony necessary for the sector’s growth, efficiency, and profitability.

Eje stated, “Some of these rules are domiciled with the Market Operator, but today, adherence to the Market Rule is below expectation.

“NESI market indiscipline is one of the major factors dealing a disastrous blow to the scalability and growth of the market.

“Market Participation Agreement is signed by all participants, but to comply with them is usually an uphill task for many. If the rules of every game are observed, there would be no need for sanctions.

READ ALSO:Blackout in Nigeria as electricity workers begin strike

“Currently, the Market Operator – TCN, is embarking on sanctioning erring market participants, having given them notices and time to comply with the market rules. One of the fallouts of the sanctions will be the partial or complete disconnection of defaulters from their point of connection to the grid.”

Eje said it was understandable that some of the players who had been punished could try to politicise the situation in order to garner quick points and inflame unwarranted feelings, but he advised against ignoring the main concerns, which were the effectiveness and continued existence of the NESI.

He clarified the steps the government takes through TCN before suspending or disconnecting a power firm from the market in order to ensure clarity.

He stated that notifications of non-compliance would be sent out in order of when a participant broke market regulations or failed to pay sums owed to the Market Operator.

“Notice of intention to suspend is then sent. If the participant fails to comply with the notice, the Market Operator may issue a notice of intention to suspend a participant’s access to the market.

“This notice will specify the reasons for the intended suspension, the proposed duration of the suspension, and the conditions for lifting the suspension. This is followed by an opportunity to respond, where the participant will be allowed to respond to the notice of intention to suspend and provide reasons why the suspension should not be imposed.

“Then the notice of suspension would follow. Here, 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 which the MO can escalate the suspension to the Commission for the Business Continuity Regulation to click in,” Eje explained.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now