There are worries about a potential national blackout after the federal government announced it had started disconnecting some power companies from the national grid due to their violation of the electricity market rules.
This information was provided by Dr. Edmund Eje, the head of Market Operators at the Transmission Company of Nigeria (TCN), in a statement on Tuesday.
Nigeria’s Electricity Supply Industry, or NESI, must be enforced for the sectors’ sustainability and viability, according to TCN, the government agency in charge of power transmission in Nigeria.
TCN urged industry participants to abide by the laws as they currently stand in order to avoid penalties.
“Notice of intention to suspend is then sent. If the participant fails to comply with the notice, the Market Operator may issue a notice of intent to suspend a participant’s access to the market.
“This notice will specify the reasons for the intended suspension, the proposed duration of the suspension, and the conditions for lifting the moratorium. It is an opportunity to respond. The participant will be allowed to respond to the notice of intention to suspend and explain why the suspension should not be imposed,” it said.
After privatising Nigeria’s power sector in 2013, the industry had yet to live up to expectations.
Incessant power blackouts, poor revenue, skyrocketing electricity tariffs and other challenges are still facing the sector.
Eleven Distribution Companies and 23 generation plants are connected to the grid operated by TCN.