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NERC empowered to punish Discos rejecting supply of power for distribution

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Due to observed non evacuation of generated power from Gencos by Discos, the Federal Government has directed the regulatory, Nigerian Electricity Regulatory Commission (NERC) to henceforth, sanction distribution companies that reject electricity allocated to them by the Transmission Company of Nigeria (TCN).

Before the new mandate, TCN had been threatening Discos but cannot do anything at the end of the day.

But with the latest mandate from the government, indications are rife that many of the Discos will seat up and improve their services to escape being sanctioned.

Several power sector stakeholders had been arguing that NERC lacked the heart to penalise the errant Discos.

Besides, the same TCN has repeatedly complained that power distribution companies are rejecting electricity allocated to them despite poor supply across the country, adding that this was the major reason why the generation companies were asked to reduce the quantum of electricity being supplied to the grid.

Government dropped the marching order to the regulatory agency at the 14th monthly power sector meeting held in April this year, which had in attendance all the operators and was chaired by the Minister of Power, Works and Housing, Mr. Babatunde Fashola.