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Published On: Tue, Sep 3rd, 2019

Kano DisCo owes Service Providers N23bn, against Market Rules –TCN

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By Etuka Sunday

The Transmission Company of Nigeria (TCN) yesterday disclosed that the Kano Electricity Distribution Company (KEDCo) owes Power Service Providers the sum of N23billion but intentionally leaves it out in its narratives published in various newspapers.
TCN debunked the claim by the KEDCo that TCN was indebted it, and that consequent upon this, it intentionally flouted the Market Participation Agreement it signed when the company was privatized, not minding the Market Rules nor the consequences of its actions.
TCN said while it would not join issues with KEDCo since KEDCo had taken TCN to court; it is constrained to note that KEDCo is deliberately misinforming the public on the true facts of the matter.
It is important to state that KEDCo was never singled out for suspension, but was sanctioned alongside Port-Harcourt, Ikeja, Enugu and Eko DiSCos who have all cured their debt, except KEDCo.
It said, “as at May 2019, shortly before the Market Operator started enforcing 100% payment of Service Providers Invoices, KEDCO owed the Service Providers the sum of N23billion and KEDCo intentionally leaves this out in its narratives published in various newspapers.
“Just as it intentionally leaves out the fact that as at 2015, it owed the Service Provider’s a total of N8.27 billion even as it claims that it is being owed N3.2 billion. The so-called imbalance of N3.2 billion is an outstanding on them from the Market. TCN is NOT indebted to KEDCo.
“From February 2015 to December 2015, for a whole year, KEDCo refused to pay for any of its Service Provider invoices despite the fact that it was collecting monies belonging to the entire market from electricity consumers within their franchise areas.
Characteristically, this pattern of indebtedness and flagrant disregard for rules continued to increase their indebtedness over the years.
“On the Imbalance Mechanism used before TEM declaration in 2015, it provides that Discos that took energy more than their MYTO allocation compensates those that took less than their own allocation. KEDCo seized this opportunity to game the Market by consistently refusing to take load, so as to earn the imbalance payment.
“Faced with the reality of KEDCo’s antics, the Regulator stopped the Imbalance Payment in 2015. This stopped compensation payment to inefficient Disco’s that lack the requisite experience to manage a
power distribution company.
“The suspension of KEDCo in line with the Market Rules provided for complete disconnection of KEDCo from the Grid but the Market Operator only disconnected two (2) feeders.
“KEDCo operates in three States Kano, Katsina and Jigawa States and
TCN has a total of twelve (12) transmission substations with
fifty-four (54) 33kV feeders through which it makes electricity
available to KEDCo for delivery to customers in the three states. The
only two (2) feeders disconnected are the ones supplying KEDCo Head
“Finally, in the Leadership newspaper on-line publication of 2nd
September, 2019, KEDCo submitted that it resorts to mass disconnection
of its customers as a strategy to collect the outstanding revenue owed
by customers. This is a self-confession that KEDCo has refused to
distribute the power transmitted to it by TCN to its customers,” TCN
said in a statement.

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