DisCos, GenCos Risk Sanction From TCN Over Non-compliance With Market Rules

The Transmission Company of Nigeria, TCN, has threatened to sanction erring electricity companies over non-compliance with the market rules.

TCN’s market operator, MO, Edmund Eje, in a statement on Tuesday, said one of the consequences of the sanction would be a partial or total disconnection of defaulters from their point of connection to the grid.

Eje said market participants in the power sector include the generation companies (GenCos), and the transmission and distribution companies (DisCos). He added it is normal for some of the sanctioned players to attempt to “politicise the action to score cheap points and whip up unnecessary sentiments”.

He, however, asked consumers to be sensitive to the real issues — which is efficiency and survival of the Electricity Supply Industry (NESI).

Eje said, “NESI is governed by rules which are absolutely necessary for the viability and sustainability of the sector. As such these rules are sacrosanct and must be complied with by all existing or new players in the sector.

See Also: Why Power Fluctuates In Nigeria – DisCos

“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 relationships between all in the sector must be obeyed and upheld.”

According to the market operator, some of these rules can be found with the MO, adding that adherence to the market rules is below expectation.

Eje said that in the electricity supply market, indiscipline was one of the major factors dealing a disastrous blow to the scalability and growth of the market.

He added, “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 sanction.”

Obiajulu Joel Nwolu

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