The Transmission Company of Nigeria (TCN) has threatened to penalize electricity market participants who made mistakes, giving them notice and time to comply with market rules.
Market participants in the electricity sector are generation, transmission and distribution companies.
TCN’s Market Operator (MO), Edmund Eje, in a statement issued in Abuja on Tuesday, warned that one of the consequences of the sanctions would be the partial or total disconnection of defaulters from their connection point to the network.
According to the MO, it is natural that some of the sanctioned players try to politicize the action to gain cheap points and generate unnecessary feelings.
However, he advised that consumers should be sensitive to the real issues, which are the efficiency and survival of the Electricity Supply Industry (NESI).
”NESI is governed by rules that are absolutely necessary for the viability and sustainability of the sector.
As such, these rules are sacrosanct and must be adhered to by all new or existing players in the industry.
“Essentially, the players in the electricity sector are the generation, transmission and distribution companies.
”So that all the actors interact effectively and create the harmony necessary for growth, efficiency, profitability and, of course, the continued support of the sector.
“The rules established for the governance and regulation of relations between everyone in the sector must be obeyed and respected,” he said.
Axis said that some of these rules are domiciled with the MO, adding that adherence to the Market Rule is below expectations.
He said that the indiscipline of the NESI market was one of the main factors that dealt a disastrous blow to the scalability and growth of the market.
”The Participation Agreement is signed by all participants, but complying with it is often an uphill task for many.
“If the rules of each game are observed, there would be no need for sanctions,” he said.
On the suspension procedure, he explained that when a participant violates the market rules, the MO first notifies the participant in writing, specifying the violation and requesting that corrective measures be taken within a specified period.
Axis said that if the participant failed to comply with the notice, the MO can issue a notice of intent to suspend a participant’s market access.
This notice will specify the reasons for the intended suspension, the proposed length of the suspension, and the conditions for lifting the suspension.
”If the participant continues to fail to comply with the ‘Notice of Intent to Suspension’, the Market Operator may issue a ‘Notice of Suspension’, which may be valid for 30 business days.
”After the period of suspension, the participant may request his reinstatement proving compliance with the market rules and other conditions specified in the ‘Notice of Suspension’.
“The MO will review the request and make a determination on whether or not to lift the suspension,” the statement read in part.