Nigeria: Group Cautions Market Operator And Discos Against Insensitive Actions

A consumer advocacy group, PowerUp Nigeria, has cautioned Market Operator, a subsidiary of Transmission Company of Nigeria (TCN), to be mindful not to take decisions that negatively affect consumers.

The Market Operator, last week, disconnected some Discos from the national grid over a breach of Market Rules.

The development plunged many areas into darkness, with some soldiers in Kebbi, storming the head office of Kaduna Electric Distribution Company to molest customers and staff on duty.

A statement issued by Adetayo Adegbemle, Executive Director of PowerUp Nigeria, said the list of 13 “defaulters” include distribution companies that could be considered “healthy” but mostly populated with Discos that recently entered into receivership among which are Ibadan, Benin, Kaduna and Kano DISCOs.

“After the Tuesday, March 21st, 2023 publication, the MO went ahead to partially disconnect both Kano and Kaduna Discos. Again, both companies that have recently gone into receivership barely eight months ago, for the same reasons, they went into receivership in the first instance.”

The group said it gathered that the response by these Discos to the March 21st publication by the MO was not really considered, with the MO demanding and insisting on bank guarantees from these defaulting Discos to cover their market shortfall despite being in a receivership status.

“Admittedly, Market Rules MUST be followed by ALL Market Participants, but we should not be oblivious to the realities on the ground.

“Liquidity issues in the NESI is a problem that has been in existence for over nine (9) years since after the privatization, and it is a wonder why the MO and Regulators expect things to change overnight.”

Since the takeover by these DISCOs in July 2022 by the temporary boards, every metric that the regulators and the market use to measure performance by the Discos have improved considerably.

It must be noted that the performance of these companies has shown an upward trajectory in the last eight months, particularly their remittance to the market.

“We should be careful, in our bid to enforce Market Rules, not to aggravate the liquidity challenges of thedefaulting Market Participants, and throw away the little progress that might have been achieved in the last eight months. We, therefore, encourage an active engagement with the affected defaulters to seek a way lasting solution to the market shortfall issue without causing undue hardship to the defaulters and their customers affected by the disconnection.

“At the end of this imbroglio are consumers and industries that will continue to suffer the fallout, and the further loss of confidence from would-be investors that might be interested in buying the ailing Discos,” the group warned.

Source: https://energynewsafrica.com