CEM REPORT, ENERGY | Imminent blackout looms over the nation as the Transmission Company of Nigeria (TCN) has said it will disconnect erring electricity distribution companies (DisCos) from the national grid.
The erring companies have failed to make remittances of ancillary services bills.
Guardian reports that a 14-business day notice was issued to the DisCos on the 21st of March, 2023 while a suspension order was issued on the 19th of April, 2023 on the issue.
The DisCos and generating companies (GenCos) listed among defaulters by the Market Operator, a unit of TCN, 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.
While the defaulting electricity generating companies are Niger Delta Power Holding Company plants and Paras Energy.
The Transmission Company of Nigeria has advised the defaulters to comply with the provisions of the Market Rules concerning payment of their outstanding invoices, posting of adequate bank guarantees, and forwarding of their active Power Purchase Agreements as the case may be, to the Market Operator.
Meanwhile, the Ibadan Electricity Distribution Company (IBEDC) has announced a planned disconnection of power supply to the company’s franchise area.
In a statement by the company’s MD/CEO, Kingsley Achife, its planned disconnection from the feeders of the national grid is as a result of poor remittances by its franchise companies.
He said Oyo, Ogun, Osun, Kwara, parts of Niger, Ekiti, and Kogi states would be affected by the disconnection.
“As a revenue collection arm of the electricity value chain, IBEDC sells and distributes electricity generated by the generation companies. However, the company is unable to meet its financial obligations to the electricity value chain due to poor payment and huge outstanding bills by customers,” he said.
While appealing to the defaulting companies to pay their outstanding bill, he warned that failure of customers to pay current and outstanding electricity bills would result in disruption of power to homes, communities, and businesses connected to the company’s network.
He noted that IBEDC will not be able to meet its obligations to Market Operator and other parties in the electricity supply industry f the bills were not cleared.
“Payment for electricity is essential to ensure the sustainability of our operations, and it is a responsibility that we all share.”
[READ ALSO] FG Earns N135 Billion from Electricity
Data from the National Bureau of Statistics (NBS) showed that revenue collected by distribution companies (DisCos) in Q3 2022 stood at N202.62 billion from N188.41 billion in Q2 2022, indicative of a 7.54 per cent increase.
On a year-on-year basis, revenue generated rose by 5.56% from N191.95 billion in Q3 2021.
Meanwhile, revenue collected by DisCos in Q4 2022 stood at N232.32 billion, compared to N202.62 billion in Q3 2022. On a year-on-year basis, revenue collected rose by 16.02% from N200.23 billion in Q4 2021.
According to the report, the number of electricity customers in Nigeria increased from 10,937,488 in the third quarter to 11,058,265 in the fourth quarter.
