TCN Wants Liquidation Of Disco Over Non-performance
The Transmission Company of Nigeria has requested that the Federal Government should liquidate a power distribution company as a result of the failure of the Disco to abide by stipulated market rules.
Speaking in Abuja on Thursday, the Managing Director, TCN, Usman Mohammed, declared that his company had advised the government to liquidate a distribution company.
Although TCN did not reveal the identity of the Disco, the transmission firm had been rigid lately in the enforcement of market rules that were within its power to enforce, as it had suspended and removed some distributors from the country’s electricity grid.
On July 28, 2019, TCN suspended and disconnected Port Harcourt Electricity Distribution Company from the power grid. It, however, lifted the suspension on PHED on August 20.
On Monday, The PUNCH reported that TCN disconnected some power feeders of the Kano Electricity Distribution Company and warned that it may further increase sanctions against the Disco, following KEDC’s failure to comply with laid down market rules.
Mohammed said, “When you cannot abide by the market rules, then you are making things tough for the market, which is why TCN has recommended that one of the Discos should be liquidated as a result of non-performance.”
When approached privately to name the Disco, the TCN boss declined.
Mohammed had earlier lamented that it was sad that some market participants failed to observe the rules of the market.
He said, “The market has to be driven by rules and regulations. People have to comply with the rules and there has to be sanctions for non-performance and reward for extra-ordinary performance.
“If the market is existing in such a way that anybody who does not perform can get away with it, then there’s no way that market can grow. And our belief is that this our market should grow by all means.”
Mohammed noted that the recent enforcement of market rules by the Market Operator had made it possible for participants who do not know the market rules to start reading the laws that guide operations in the sector.
He said, “There are many people in the market who are supposed to know the rule but they do not understand the rule and this include participants. This is because I’ve seen situations where people write letters that do not make sense.
“When you write a letter, for example, to the Market Operator to say that, ‘I will not be able to pay.’ That has an implication. If you will not be able to pay within the market that means you should be liquidated.”
Mohammed added that operators that could not fulfil their obligations within the market should exit.