Outage Averted As KEDCO Settles Debts
What could have been a major power outage in Kano, Katsina and Jigawa states was averted yesterday as debt crisis between the Kano Electricity Distribution Company (KEDCO) and Market Operator(MO) has been settled. KEDCO Tuesday complied with payment of 100 percent for energy services default for May and July, just as the MO resolved to lift the over 30 days suspension it slammed on the DisCo.
Kano DisCo had been on multiple suspensions beginning from late July 2019 for its inadequate fund and security cover to clear its energy services bills. The MO, Engr. Edmund Eje, had issued a termination notice about 11 days ago citing provisions of the electricity Market Rule that a DisCo suspended for over 30 days can have its right terminated from the market.
The termination notice on KEDCO was to elapse on Tuesday and that could have resulted into its termination from the power grid. However, sources at the MO office, a department of the Transmission Company of Nigeria (TCN) said the defaults have been cured by KEDCO.
“The Management of KEDCO was treated to the reasons why it should comply with the Market Participation Agreement it willingly signed. Elaborate explanations were made by MO as to why deferred payments would not be considered any longer in the Nigerian Electricity market (NEM),” an official noted.
The MO also insisted that it operates on the principles of transparency and fair play. “The MO would not deviate from the Market Rules prescribed treatment which other defaulters received. MO had no moral grounds to treat another Disco differently.” Exclusive records show that KEDCO complied accordingly by completing their service charge payment for May, 2019. Their July invoice has also been settled 100% alongside others.
The two disconnected feeders have since been reconnected. “We will soon publish the termination of their suspension,” the MO source said on Tuesday. When contacted, the spokesman of KEDCO, Ibrahim Sani Shawai confirmed the compliance status of his DisCo, saying, “Everything has been met and resolved.”
He had in a previous statement confirmed the reconnection of the two feeders earlier disconnected by the MO order while the suspension lasted.