The Transmission Company of Nigeria has said , Nigeria’s electricity market has been nose-diving since the distribution and generation arms of the sector were privatized in 2013 and is currently on a sick bed .
The sick state of the power market was because participants, particularly power distribution companies, hardly complied with stipulated rules of engagement. According to TCN.
The Market Operator, Mr. Edmund Eje, stated that the power market was currently seeking sustainability.
He, however, stated that the transmission company had resolved to enforce the market rules which it had powers to enforce in order to forestall an eventual collapse of the power sector.
“Seeing how the market is nose-diving you can see that the market is almost on a sick bed, seeking for sustainability, stability, transparency and all that. Now the question is: what would we like to opt for?
“Is it cancellation of the privatization or do we apply the laws we believe that when they work the market continues? And that’s what the Market Operator of TCN has resorted to doing starting from June this year.”
He further explained that why some power distributors were suspended by the TCN recently was because the firms defaulted in renewing their security deposits/guarantees and that this would have crippled the activities of TCN and the sector if it was not checked.
“Every other developed clime where you hear that it is working, it is mainly because the rules are obeyed. If it is working in the United Kingdom, it is because the practitioners comply with the rules that control the market,” He added.
“Today, we want to do our own part as Market Operator; we want to make sure that we enforce the rules. We want to make sure that any person who has signed an agreement with us complies with the tenets of that agreement and that’s what we are trying to do right now.”
He noted that after the disconnection of Discos by TCN, the transmission firm started receiving commendations as other market participants noted that the move was a good way to help manage the market.
“The far reaching implication is that if the Discos do what they are supposed to do, you will see that the market itself is going to stabilise. The common person who can also afford his bill will likewise pay his bill.
“But the important thing is that at any time or most of the times you turn on your switch there will be light.”