Blackouts loom as TCN disconnects discos from national grid over debt

Mass blackouts are looming across the country as the Transmission Company of Nigeria through the Market Operator has begun a massive disconnection of debtor electricity distribution companies (DISCos) from the national grid.

The MO, a division of the Transmission Company of Nigeria, is taking the action following the failure of the DISCos) to honour the various notices of disconnection from the grid served on them. The Market Operator had informed some Discos, including generating companies of the disconnection plan, due to failure to make remittances of ancillary services bills.

This situation has led to electricity supply sharply dwindling across the country, with many areas complaining of either low or no supply.

The erring Discos had earlier enjoyed a 60-day grace period following an intervention by the Minister of Power, Abubakar Aliyu.

The market defaulters were expected use the grace period to meet up their defaulting obligations and make their payments of their outstanding invoices, posting of adequate bank guarantees, and forwarding of their active Power Purchase Agreements as the case may be, to the MO/TCN.

Some of the defaulting DISCos and Gencos 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.


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