Electricity Market Operator Threatens to Escrow Accounts of Distribution Companies
The electricity distribution companies in Nigeria, DISCOs, have been called out by the Nigerian Electricity Market Operator to improve their monthly remittances to the market or have their accounts escrowed.
The Market Operator, Mr Moshood Saleema was speaking at the Stakeholders Workshop that had the representatives of all market participants including generating companies, GENCOS, distribution companies, DISCOs, and other service providers.
According to the Market Operator, the Nigerian Electricity Market is in bad shape as the DISCOs make only 30% remittances on the invoices they get on monthly basis and that such poor remittances have critical negative impacts on the operations of other operators and segments of the value chain, especially the generation and gas companies.
Mr Saleema believes that the DISCOs have to improve on their monthly remittances, otherwise their accounts would be escrowed and their security deposits would be called up in the event of default. He also urged all market participants to recommit themselves to the market and embrace market discipline and compliance for the greater good of the sector and the nation at large.
The MD/CEO, TCN, Engr (Dr.) Atiku Abubakar, who was represented by the MD, TSP, Engr Tom Uwah called on the DISCOs and other market participants to shun indiscipline and disregard to the ruling documents. He stated that lack of funds from the market has affected the completion of several TSP projects aimed at upgrading TCN capacity to wheel more power to the DISCOs.
Speaking while welcoming guests, the MD, Independent System Operation, ISO, Engr Musa Gumel also called on market participants to respect the ruling documents in the industry and refrain from self-help and even resorting to the courts. He advocated that market participants should explore all the dispute resolution platforms established by the regulator for the resolution of any dispute in the industry.