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Business News of Wednesday, 24 May 2023

Source: www.punchng.com

Tackle power sector crisis, Reps tell TCN, DisCos

TCN TCN

The House of Representatives has urged the Federal Government, through the Ministry of Power and the Transmission Company of Nigeria, to “find a lasting solution to the issue of power distribution and supply across the country.”

The House also mandated its Committee on Power to “oversee the implementation of the resolutions of the House” and report back within one week.

The call was based on a motion of urgent public importance moved by a member of the House, Unyime Idem, (PDP/Akwa Ibom) at the plenary on Tuesday.

The motion, which the lawmakers unanimously adopted, was titled ‘Urgent Need for the House Intervention and Prevention of Total Collapse of Power Supply to the Whole Nation.’

Moving the motion, Idem said the House was “worried about the frequency and incessant interruption of power supply across the nation in the past weeks, which has been on the increase, thus disrupting businesses and lives of Nigerians who are equally burdened with several tariff increments.”

The lawmaker noted that the Federal Government, through the Transmission Company of Nigeria and the Market Operator, had reportedly begun disconnecting electricity distribution companies that are not complying with the operation codes and guidelines.

According to him, the Market Operator, a division of TCN, has reportedly served some of the DisCos notices of disconnection from the national grid due to their inability and failure to comply with operation ethics.

“Unfortunately, it was gathered that virtually all the distribution companies in Nigeria are defaulting in one area or the other, to the detriment of the consumers ranging from non-compliance to the market rules with respect to payment of their outstanding invoices, posting of adequate bank guarantees and forwarding of their active Power Purchase Agreements, as the case may be, to the MO/TCN for failure to make remittances of ancillary services bills,” Idem said.

The lawmaker warned that millions of electricity consumers in Nigerian homes and communities may be plunged into darkness in the coming weeks as the TCN and the Market Operator have begun a massive disconnection of debtor DisCos from the national grid.

He added, “Unfortunately, the news is already generating unpalatable outburst as over 20,000 members of the Aba Landlords Protection and Development Association and other communities have threatened to mobilise and occupy the streets if the TCN fails to rescind their decision.

“An extension of the grace period of 60 days given to the defaulter DisCos, wherewith they are expected to comply with the provisions of the market rules with respect to payment of their outstanding invoices, posting of adequate bank guarantees and forwarding of their active Power Purchase Agreements to the MO/TCN, is almost over.