Time is ticking away for the two electricity Distribution Companies (Discos) serving Lagos if they fail to meet up the required amount established by Market Operator (MO) to serve as a form of guarantee of payment for all amounts to the department.
Business Hilights recalls that last week, the MO, an arm of the Transmission Company of Nigeria (TCN), had ordered the suspension of Enugu Electricity Distribution Company, Ikeja Electricity Distribution Company and Eko Electricity Distribution Company from the MO-administered markets for failing to renew their security cover.
Security cover is a condition for continued guarantee for payment capacity in the power value chain.
The Managing Director of TCN, Mr Usman Mohammed, in an interview revealed that whereas Enugu Disco was given a disconnection notice, the two Lagos Discos, Ikeja and Eko Discos got a notice of suspension from the market on the expiration of given time frame.
According to him, “If they don’t make good within a certain period of time, the next thing that will happen is that they will be expelled, and when they are expelled, it means that the Nigerian Electricity Regulatory Commission (NERC) will be notified that those people are incapable of meeting their responsibilities in the market.”
“If that happens, NERC will have on other option than to invoke the trio’s business continuity regulation to ensure that they are replaced.
“We did not disconnect Eko and Ikeja Discos because the gravity of their offence did not warrant that. But in Enugu, we disconnected some lines. When they (Enugu Disco) make good, they will be restored to the market. But if they don’t, they will go to the next level, which is expulsion,” Mohammed noted.
