Power sector: Why TCN suspension of Port Harcourt Disco’s worsen blame game
The blame game over the electricity shortage across the country continues to worsen after the decision of Transmission Company of Nigeria (TCN) to suspend Port Harcourt Electricity Distribution Company (PHEDC) from the electricity market.
The nation’s power sector is still in crisis with operators trading blame, more than five years after privatization which was widely expected turn Nigeria’s power sector around in a few years.
TCN, a government agency responsible for transmitting available electricity to distribution companies in the country last week announced that PHEDC was suspended from the market and a section of its transmission facilities have being disconnected.
The disconnection of the PHEDC, the main electricity distribution company in oil-rich Port Harcourt state is expected to lead to blackout in some location such as Borokiri, Secretariat and cities connected to 33kv Feeders. Why PHEDC was suspended According to TCN, Port Harcourt Disco was suspended from the Electricity Market because of default in the Market Conditions/market Participation Agreements.
“PHEDC has been suspended from the Market Operator Administered market due to an EVENT OF DEFAULT that was not remedied. PHEDC was notified of this EVENT OF DEFAULT by a NOTICE OF EVENT OF DEFAULT (NED2019/004) dated July 9th, 2019,” TCN said in its statement published July 29 2019.
PHEDC management was said to have responded to the suspension notice within five days or two business days stipulated by the market rules and requested for a hearing
before the Market operator to present its case on why the suspension order should not be issued.
Similar sanctions against Ikeja, Kano, and Enugu DISCOS
In the last one month, similar suspension disconnection orders were issued against the Enugu, Kano and Ikeja DISCOS over the same allegations of infraction of the market rules.
Although the two DISCOS said their managements commenced the process to get the TCN to rescind the action against them and restore their facilities and services, TCN is yet to provide any update over the matter.
Recall two weeks ago, TCN suspend Kano Electricity Distribution Company from the Market Operatoradministered market due to “an event of default” that was not remedied.
Provisions of electricity market rules
The default the DISCOS were accused of failing to remedy was in line with the agreement TCN said they all agreed to comply with at all times. This has to do with Clause 3.2 of the electricity market rules on grid code, metering code, and market procedures.
Accordingly, the DISCOS were expected to, among other roles, provide metering information in a timely manner and in the approved format in accordance with the Metering Code.
Besides, they were to ensure compliance with the market procedures, provide security deposit when so required to serve as a guarantee of payment for all amounts due from their participant to the TCN as well as settle in a timely manner any payment due.
But, the TCN said all DISCOS now being sanctioned, contrary to the provisions of the agreement, failed to maintain a security cover, thereby breaching Section 45.3.1(d) of the market rules.