Oke Peter with Agency Report
A report obtained Thursday from the System Operations (SO), a department of the Transmission Company of Nigeria (TCN) has shown that the level of electricity distribution by the 11 electricity distribution companies (Discos) in the country has significantly dropped to 2,962.82 megawatts (MW) or 46.73 per cent.
The report, which showed the level of unutilised power generation by the Discos, said while the certified distribution capacity of the 11 Discos had remained at 6,235.66MW, their actual consumption had, however, declined to 2,962.82MW.
It came at a time when the TCN has raised the bar on its push to cleanse the Nigerian electricity market of recalcitrant transactional behaviours by operators in the market, mostly the Discos.
Also, THISDAY gathered that in addition to its fine of several Discos for market transactional failures, the Market Operator (MO), another department of TCN, might fine Kaduna Disco for alleged market infractions.
The plan to sanction Kaduna Disco by the MO coincided with the MO’s plan to disconnect Kano Disco from the national grid in about five days if the Disco fails to defend why an impending enforcement action against it should be stopped.
The MO said Kano Disco had severally abused the transaction processes of the market and was owing it N315,805,053.49 representing 50 per cent of its May 2019 supply invoice, in addition to other market infractions.
However, the market report obtained by THISDAY on the Discos distribution capacity stated that while they usually nominate to take an average of 3,700.58MW from the national grid, their actual demand has dropped to about 2,962.82MW.
Additionally, the capacity taken by the Discos is reported to be below the daily supply volume approved in the Multi Year Tariff Order (MYTO) by the Nigerian Electricity Regulatory Commission (NERC), which is 4,654.15MW.
According to the report, for instance, on August 27, the Abuja Disco has a capacity to distribute 804.30MW but nominated to take only 399MW from the grid. It, however, ended up taking 382.18MW. Benin Disco, which has a capacity of 530.98MW, only took 216.97MW from the grid on that day while Eko with a distribution capacity of 745.30MW took only 429.92MW.
For Enugu, which has a confirmed distribution capacity of 637.18, the Disco eventually took 252.20MW on that day; Ibadan with 758.75MW took 421.99MW; Ikeja has 773.60MW distribution capacity but took 326.83MW; Jos with 355MW capacity took 134.32MW for distribution to its customers; Kaduna, which has the capacity to distribute 468.10MW, only took 171.24MW to its customers; Kano with 424MW equally took only 141.51MW on that day.
The two other Discos in the market, Port Harcourt and Yola, with the capacity to distribute 505.30MW and 233.15MW respectively on August 27
took only 188.18Mw and 113.17MW respectively to their customers.
Officials in the SO department of TCN revealed that the current deterioration in power distribution has remained unchanged for a while now, adding that the Discos frequently nominated their load demands but do not take them up.
The Association of Nigerian Electricity Distributors (ANED), which is the umbrella trade union of the Discos, could not be reached for comments on this.
Calls and messages sent to its Director, Research and Advocacy, Mr. Sunday Oduntan, for clarification did not get any response as at the time of filing this report.
Meanwhile, it was gathered that the Kaduna Disco could be fined by the MO for reported market infractions and has been invited to clarify its alleged market defaults.
The invitation to Kaduna Disco followed the MO’s disclosure that it would step up its punishment against Kano Disco in the next couple of days if it fails to put up an absolutely convincing case against the imminent enforcement action.
The MO said it suspended Kano Disco through orders it recently issued for its failure to rectify two events of market defaults – lack of adequate security cover and default in payment of its May 2019 invoice.
It noted that because Kano Disco failed to rectify these charges, it was giving it until September 10 to explain why it should not be disconnected from national grid.
“Based on Market Rules 45.4.1 and 45.4.3, the Market Operator hereby gives Kano Electricity Distribution Company (KEDCO) of this Notice of Intent to Issue a Disconnection (NIIDO) on the grounds that it has not cured the events of default which triggered Suspension Order TCN/ISO/MO/005 (issued July 21, 2019) within 30 business days.
“KEDCO has still not topped up its security cover and has made media claims it is not going to top it up. KEDCO has not paid in full its May 2019 invoice, still owing N315,805,053.49 representing 50 per cent of the invoice. In line with Market Rules 45.4.3.b, KEDCO is required to make a written representation to the Market Operator why the termination order should not be issued by September 10, 2019,” said the MO in the notice seen by THISDAY.