Following their “non-compliance with the conditions of market rules”, the Federal Government has ordered that three electricity distribution companies be disconnected from the national grid.
The directive for the suspension of Eko, Enugu and Ikeja distribution companies was given in notices issued by the market operator, an arm of the Transmission Company of Nigeria (TCN).
DisCos are said to have failed to renew their security cover and are allegedly owing the TCN energy service debt to the tune of N231 billion.
The DisCos were reportedly given room to address the situation but did not respond within the stipulated time.
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The notice to Ikeja DisCo read: “The restriction of Ikeja Electricity Distribution Company intake from the grid through a Disconnection Order to the Transmission Service Provider to disconnect some facilities of Ikeja Electricity Distribution Company until the event of default stated in NIISO/2019/003 is remedied.”
The notice to the Enugu DisCo read: “That Enugu Electricity Distribution Company (EEDC) is under suspension through market operator issued Order TCN/ISO/MO/002. “That Enugu Electricity Distribution Company (EEDC) has been suspended from the market operator administered market due to an Event of Default that was not remedied.
“EEDC was notified of this Event of Default by a Notice of Event of Default (NED/2019/002) dated May 24, 2019.”
On its part, a directive was also given for the suspension of Eko Electricity Distribution Company on similar grounds. However, the company’s deputy managing director, Paul Okeke, said necessary arrangements are being made by the EEDC to procure and deliver security cover to the market operators.
The head of corporate communications of Ikeja DisCo, Felix Ofulue, said an extension of time had been sought by the company, to enable it fulfill its obligation.
He said, “Notwithstanding the above, Ikeja Electric assures all its customers and other stakeholders that everything will be done to ensure that there is no deliberate disruption to services.”
