Electricity stakeholders trade blame for poor performance 

The Market Operator(MO), a unit in the Transmission Company of Nigeria(TCN) and electricity distribution companies(DisCos), have disagreed  over who is responsible for poor services provided by  the Nigerian Electricity Supply Industry(NESI).

The MO, which is a unit in the TCN, is responsible for issuing invoices and collecting payments for ancillary services provided by TCN, Nigerian Electricity Regulatory Commission(NERC), and other government agencies in the sector.

The Market Operator, Engr. Edmund Eje, in a statement on Tuesday, April 25th, blamed lack of growth in the Nigerian electricity market on the failure of companies to adhere to rules and regulations governing the sector.

He explained that the process of imposing sanctions on defaulting firms which disregard rules aimed at promoting the market has started.

Eje said sanctions could include partial disconnection from the National Grid. 

The electricity sector which was partially privatised by the Federal Government in November 2013, has failed to deliver the expected improvement with generation, transmission and distribution averaging just 4,000MW.

Eje pointed out that adherence to rules is absolutely necessary for the viability and sustainability of the sector.

TCN had in March issued a 14-day ultimatum to nine electricity distribution companies, DisCos, three generation companies, GenCos and the Ajaokuta Steel Company to remedy their remittances and other with the Market Operator.

“As such, these rules are sacrosanct and must be complied with by all existing or new players in the sector.

Essentially, the players in the power sector are the generators, transmission, and distribution companies. 

“For all the players to interact effectively and create the requisite harmony for growth, efficiency, profitability and of course, continued sustenance of the sector, the rules set for governance and regulation of relationship between all in the sector must be obeyed and upheld”, he stated.

Dr. Eje added: “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.”